Looking for an investment opportunity

J

Justme

Senior Member
I am looking to invest about £20,000. If possible I would like to help out a person wanting to start a small business, which looks as if it has potential. I realise £20K isn't much, but as investments of this sort can be risky and I could lose the lot, I would be foolish to put up more than I would be prepared to lose if the worst came to the worst.

Anyone got any interesting suggestions?
 
Justme said:
I am looking to invest about £20,000. If possible I would like to help out a person wanting to start a small business, which looks as if it has potential. I realise £20K isn't much, but as investments of this sort can be risky and I could lose the lot, I would be foolish to put up more than I would be prepared to lose if the worst came to the worst.

Anyone got any interesting suggestions?
Click to expand...

Wouldn't you want to look into some local charities who might direct you towards someone worthy of a leg up?

But found these anyway:

http://www.foxbusiness.com/personal...o-know-before-investing-in-business-startups/

http://www.angelsden.com/
 
Investment,like the stock market, in a new business is very risky.
No way I would do that with a small unknown,untested business.The persentage of new small business being successful is very low. BUT if they are still going after 5 years in the business then chances are better.
 
Justme said:
I am looking to invest about £20,000. If possible I would like to help out a person wanting to start a small business, which looks as if it has potential. I realise £20K isn't much, but as investments of this sort can be risky and I could lose the lot, I would be foolish to put up more than I would be prepared to lose if the worst came to the worst.

Anyone got any interesting suggestions?
Click to expand...

I studied this (Personal Finance or PFIN by Gitman/Joehnk/Billingsley). I know there is plenty more info out there, and maybe a "recommended" advisor. I say recommended because someone has a plaque on their door doesn't mean they are trustworthy.
 
Davey Jones said:
Investment,like the stock market, in a new business is very risky.
No way I would do that with a small unknown,untested business.The persentage of new small business being successful is very low. BUT if they are still going after 5 years in the business then chances are better.
Click to expand...

This is good advice, the numbers are over-the-top in new businesses, I think mainly because of internet business being so easy to start. The 5 year thing makes good sense, if they've showed increasing growth they must be on the right track.
 
I am only investing £20,000, and I would much prefer to invest in someone I have met, possibly a young person, who is just starting out in a small business. I am not really interested in making much of a profit on my investment, just being helpful.
 
startups need a high rate of return to offset the risk, as Davey pointed out. It is unlikely that this rate of return (50% at a min. ) would be there as most proprietorship start ups are simply creating a job for themselves. the next best thing would be IPO's that are registered. If you want to help someone think about tax deductible charitable institutions, or depending on your level of commitment, set up a foundation.
 
If I do find someone in whom I would consider investing, I am fortunate that I have people I could turn to for advice within my own family.
 
are you looking for someone in the UK or US, either one , I'm sure there would be all kind of takers.
 
rt3 said:
are you looking for someone in the UK or US, either one , I'm sure there would be all kind of takers.
Click to expand...

Yes, plenty of takers in this world. What might be a plan is looking into college students, I mean those graduating etc. My nephew came out of Optometrist classes/school, and started his own biz in Bend OR. The family had money to help him I think, but man did that biz grow. He's got like 20 employees now. I think it's been about 20 years though he's been building:)
 
rt3 said:
are you looking for someone in the UK or US, either one , I'm sure there would be all kind of takers.
Click to expand...

It would have to be the UK, as I would need to meet the person and see if I liked them. However good a business idea, if I didn't have a rapport with them I wouldn't invest.
 
You must log in or register to reply here.
Back
Top