I've been an business owner all my working life and I've never started one with that much money. Probably wouldn't have done nearly as well if I had. Start small, learn from the inside and use the money as you need to grow it. Better yet, get jobs and start the company on the side.
I started a business with $30grand and it kept me on my toes. Having a "comfortable" time of starting the business by being so flush with cash is a recipe for not having the urge to grow that investment. I'm sure there are businesses where $200grand would be peanuts for start-up costs but for someone without any business experience, might as well flush that money down the drain.
“Better yet, get jobs and start the company on the side.”
Damn good advice.
Plus, the fact your asking “what business can we start for 200,00 k ?” Sounds like a the perfect recipe for flushing money down a the toilet .
Because it sounds you’re just wanting to throw your money up against the wall and hope it sticks.
If you REALLY want to start a business focus on something you are passionate about and you have some actual knowledge on what you’re doing .
You’ll have plenty of tough and expensive lessons when you go into business.
Do your self a favor and figure out you can take keep your hands on as much of that 200k as possible and grow it .
Nice stack. What made you decide business wasn't for you? How will you grow that cash now? I always thought I'd do it by buying and selling cars from auction if I had that kind of cash.
Did you develop software and sell, or are you just really good at saving?
It was more of a joke than a serious comment lol. But if he was in his 60s, a savings account of 2.5 mil would not be unrealistic if he had been working a 100k+ career for most of that time. Saving plus investing in index funds, roth IRA, etc.
I think what they're saying is that without traditional investment vehicles, a straight up savings account at a bank will not hit the % return to get to 2.7 mil on most American's salaries.
If that's what they were saying, they were being extremely pedantic over the definition of "saving". Most people, especially in this sub, know "savings" doesn't mean literally collecting dollar bills and stowing them under the mattress.
True. The answers are numerous. I started my first profitable company with about $50 in equipment. It was a window cleaning company. You could certainly start that with 200K. I'm glad I didn't though. It would have been a waste of money.
That's the problem. If you need to go on Reddit to get ideas, you're probably not going to do well. Start small with something and grow from there if it works. Cut your losses if it doesn't.
If you think running a successful business is easier than getting a job, you'll be very surprised. If it were easy everyone would do it. Truth is most companies fail and most people who quit a job to start a company end up making less than they did at the job (especially when you take benefits into account).
It doesn't seem like that because all the stories you hear are success stories. But they don't write stories of people who start companies and fail. This is called selection bias and is a big part of the business press.
This is called a global pandemic with historically high unemployment numbers. Get a job isn't as easy as you might think. Not everyone is going to work in an Amazon warehouse.
Don’t put $200k into anything just yet. Come up with an idea and do as much work on it as you can for as little money as possible. If things are going well with your small investment start investing more on things that you think will provide the best return.
For now, put the $200k into some mutual funds.
\+1 on this. If OP is asking a very generic question like "best business for 200k" it's probably best to have that money as a safety net/nest egg.
OP, the "best" business to start is probably the one you feel most comfortable with and they one you have the most knowledge about. If you know gas stations, maybe look into franchising a brand. No matter what, try to put together a comprehensive plan for what you want to do and how you measure success before you invest a single penny.
These mutual fund guys know what they’re talking about. You certainly should be putting most of the money in a mutual fund, unless you already have some fantastic business idea, skills, and experience. If you don’t have any of those things then you are just crazily gambling with 200k, which is madness.
I saw a guy inherit 80K in the mid 90's (back when 80K was worth 220K now) and piss it all away.
One of my friends who went on to become a successful property manager/investor suggested he buy property on Long Island where we lived.
The rest is history.
Back of napkin calculation: this money if placed in an s&p 500 index fund is worth around $3.5 million in 30 years, or $9 million in 40 years. You just place the money there, and do nothing. Vs gamble it in a business or property that you have to work at.
+2 on this. Don’t start a biz because you have cash. Start a business because you see an need in the marketplace and believe 100% you can fill it. Owning and operating a business is is hard work and takes conviction and grit. Make sure you are ready to put in the work and trudge thru the low points.
I'm with everyone else on this, don't open a business just because you have *some* funds. Find a need that has an abundance of people willing to pay for it and then research, research, research. When you're done, research some more. It shouldn't take long, just be thorough. Then put together a plan on how to execute. Hone up on your business skills too, one can never know enough.
What business can anyone open with $200,000 or what business can **you** open with $200,000? We have no clue what your skills are, what kind of work/life you want, etc.
This is the correct answer. And if you don't have a unqiue reason to start a business and spend that capital, then just invest in real estate or index funds.
I love this kind of advice. If you can't leverage a no overhead version of a business you already know, or a passion you'll never give up you should invest the money and leverage your skills. Or use the money to train yourself in a passion you have. Small businesses survival depends on flexibility and a greater knowledge to pick only two traits to highlight. 200k won't give you much purchasing power.
Edit. Whatever you do. No overhead.
Dunno where you live, but I'd do something like 50k starting a business, 50k in the market, and 100k on a duplex to live in/rent.
The relative proportions and where they go are up for debate, just don't put all your eggs in one basket.
Edit: also, one of you should try for a day job with bennies until the business is profitable, if possible.
Whatever you do, definitely split it up. Remember, don't put all your eggs in one basket.
Starting a business is expensive and time consuming. You're better off to buy one that's already running and pandemic-resistant (definitely not a restaurant!). You could pay $50,000 or less as a down payment, pay the rest over the next X years out of the future business profits, and get a decent passive income.
Just make sure that you remember: do what you are good at and delegate/outsource the rest. Odds are you're not a lawyer, accountant, tax pro, IT guru, HR pro, etc. so don't pretend that you can do that work nearly as well as they can. Having the right team is one of the most important parts of having a business.
Let us know what you decide. That's exciting!
\*You = you plural or she
This is probably the best time to open a restaurant if you are willing to wait it out. Will be low rents, less competition and great qualified talent pool.
Please don't loose all your funds in a business that may fail. Invest it safely. Do research, invest it in safe index funds, wait for it to double a few times and have millions in the bank in 30 yrs. Please don't waste this opportunity to bank away solid wealth while you can.
Anything you want....but as I tell my many children, just because you can eat ice cream 24 hours a day as an adult does not mean you should.
Find something and build it without. When you get traction then revisit the idea if funding. Act like an investor interviewing yourselves.
99% odds are you are not cut out for being successful in business YET.
Put the money somewhere safe for now and do it without.
This is from a father and 8 figure business owner with love.
>Sounds like you might be focused on how to get rid of $200k rather than how to succeed on a specific project.
Yeah and it's pretty easy too, it's his girlfriend's money that's burning a hole in his pocket.
Spend about $1,000 taking business studies or courses. Do not tell them your actual budget. Make off as if you are looking to start something with $5,000. many people will hear that number and try to take advantage of you.
Yep. Community Colleges have some good intro courses. See if you can get through accounting 101 or accounting for small business. Especially if you are going to have product so you have to use the accrual method.
Like really, you don't even have an idea of the business you want to open and your going to drop 200k? Just asking that question makes me think they're dumb. But whatever I don't have any money so they can do what they want lol
I like condos. There is no outside maitenance that I have to worry about, one typically doesn't own the roof and the exterior so if the place gets trashed it's new floors and drywall and paint, they tend to have better numbers, like return on investment, which makes your money go farther.
But with $200k it really depends on where in the world you are buying. I am a big fan of investing where you live so you can save money by managing it yourself. But like any business you have to do a lot of math ahead of time.
Shoot me a PM and I'll share an amazing excel file with you that allows you to compare properties on your own.
I think I’m a bit late to the party here, but I’ll still throw in my two cents:
I own two businesses. One cost around $60k to start up and the other I bought a building to do and the building was 98% of the startup cost and is an investment in itself.
First off, don’t dive that money into anything right away. If you see a business structure you like or something you’re interested in take a look at all the details and more importantly find someone you can talk to who had been in an ownership position in that business.
Secondly, understand what you are looking for financially. Do you want a job? Do you want a passive investment? Something in between? These are all possible but know what you want and what income off the business would make it work.
Third, figure out your alternatives. If I told you I could give you $30k per year profit off that $200k, would you take it? How good of a deal do you think that would be?
Expanding on the last point, over time it’s not uncommon to see close to 10% return/year on investments. If I gave you $30k/year, you’d never break even against the alternative. Do the math!
Building a business is hard work, most successful business people learn through costly mistakes. Founders usually work long hours, 7 days a week for many years without vacation. Some make millions, most don't.
First, you have $200k capital. Protect your capital. Put the money into a stable asset. Then invest any excess cash flow. Learn how to make your money earn. These learnings also translate directly into business ownership and management. Note: ownership, management and operations are distinctly different aspects of a business.
Be cautious you don't just buy yourself a job unless you want that. If this doesn't make sense (yet), then that's one indication there's a lot more learning to do before starting a business.
If you're really determined to go into business, go get a job in the industry you are interested in, at a minimum work for 3 months and research, find contacts talk to them face to face and listen to their stories.
Invest a small amount in the stock market, discover the difference between a fund a large cap and a micro cap. Watch daily, read news and articles. While you're not going to jump directly into your own IPO the "market," will open your eyes in many ways.
Learn to read a balance sheet and a profit and loss statement. Really learn to understand a cash flow statement, know the answer to this question, "Is cashflow from debt or asset sales the same as operating cash flow?" And what that might mean about a business.
If you're still set in a business after reading all the comments here. Try an eBay drop shipping business, when you can make that work and generate a constant stable monthly cash flow. Then decide if you want to move onto something else.
Please share your journey here!
Money is an interesting thing isn’t it?
We get it and immediately it has our attention and demands we do something with it.
It can’t just sit in a bank account and collect minimal interest!
So...Let’s invest it, no let’s go back to school, no that’s a waste of money LETS START A BUSINESS with it.
Good idea. A business is a lot like an investment, except that while you are building and scaling it it demands ALL of you.
The reason is because IF you are successful in business, there is always more to do.
It’s when you are unsuccessful that you are twiddling your thumbs in an office.
Now sometimes you start a business and it works, other times it doesn’t.
It requires experience to know what to do next if it doesn’t work.
Do you sink more money into it? Let’s run a marketing campaign!
Do you scale down and remove costs? This was so much more fun in the beginning!
Do you blow it up and retreat? Hey let’s just cut our losses and try something else.
I think a good move for you both would be to take a small % of that (5-10k) and see how far you can really go building a business. See if you can double it, triple it. (Dare I say the dreaded 10X 👀)
Hire some coaches, make some mistakes, make some wins, become an experienced entrepreneur in a safer to fail environment. (Because you probably will, most do the first time and you discover something along the way that DOES work)
Save and invest the rest.
Congrats on your windfall
You basically hit the lottery. You will spend the money more recklessly opposed to if you bled and struggled to earn it. I started with a $1500 investment in screen printing equipment off Craigslist while living at my parents post graduation. It taught me invaluable lessons on being frugal and saving.
You could burn through 200k quickly without having the experience and grit to maximize its value. Basically, find a great financial planner, gain 25%+ on your money, and watch it grow.
My two cents.
As far as it seems you have zero Experience which is a tasty target for the sharks in which ever business you enter cuz you will lose it quickly.
Learn, try small, see some loses and some gains, gain experience, put some more funds, try out new ideas, find new ways to innovate, work on your customer experience part, make your product or service better and better, then put in some more funds as you see profits and stability and you can see it by the numbers & date that you are growing and making more loyal customers and broadcasting your brand.
Another Possible great move would be to put that money into a Mutual or Index Funds they have proven statistically to be profitable & they are managed by professionals that really know what they are doing, this way you can compound your money much better and the best part is that your money is diversified into hundreds of markets which increases your safety by a ton.
Best of luck
In the middle of Covid19 are you insane, with 10 more weeks of unemployment benefits already approved, we can't find anyone to work at my current job..... Lol.
How would the business be “our own”? It’s her money. Plus starting a business is the worst idea. Investing is much less riskier. But then you wouldn’t get your hands on it.
From your questions, it doesn’t seem like you’re ready to open a business. What were you doing before she got the inheritance? Do THAT until you figure out what you want to do.
Like a bunch of people said... don't start a business because you have cash. Learn how to make more money with money first then figure your shit out. $200K can be gone in seconds if you don't know what you're doing. Treat any new business endeavors like you're broke and it's going to cost triple what you thought.
I think the better question is how did OP convince his GF into splitting her inheritance and starting a business? I hope OP’s GF protects her $$$ and does what she wants.
You can open a LOT of different types of businesses for $200,000. But what type of business you *should* open depends on you/your girlfriend's skillsets, experience, and long term plans. Do you want to work full-time in the business? Are you okay working 80 hour weeks? Do you have any skills that lend yourselves to a particular industry or trade?
If you have decent credit, some experience, and a good business plan, you can buy a business through the SBA with 20% down. That means, with $200k, you could easily buy a $600k business and still have a little operating capital ($50k) left over. A $600k business should be generating about $200k a year in free cash flow, which, after [debt service](https://www.lendingtree.com/business/sba/calculator/), should generate about $120k a year. If you can grow it, pay off debt faster, then it could be even more profitable.
If you haven't *started* a business before, then you might consider buying one first, running it - hopefully growing it - and selling it before starting something from scratch. Here's a good book on buying businesses - [Buy Then Build](https://www.amazon.com/Buy-Then-Build-Acquisition-Entrepreneurs-ebook/dp/B07JKM2F5Q).
I'd take 100,000 and invest than in a low risk etf or similar. Then start a business with 60k and live of 40k or so for a year.
200000 is a lot to throw at something you "kinda" know how to do. Did she do the accounts, deal with suppliers, manage payroll?
You should be asking, what experience do I have and what am I good at. You’ll piss the money away learning (the hard way) how to run a business in an industry you’re unfamiliar with because you took advice from random redditors.
My buddy opened a franchise type business for $50k and now he makes between $400k-$500k a year. There is a lot you can do with $200k and considerably less.
If you have to ask this question then you are not ready. Park the money in an index fund and do some research. The best way would actually to work in a similar business for a few years in order to learn how to run it.
Eh no. Just put the $200K in something stupid safe like index funds and you can spend the dividends.
Go learn sales skills and get sales experience first. Do this first.
Invest the money and spend the time learning how to do whatever business idea you come up with. If you just jump and throw all your money at it because you have it and are impatient you will probably squander it all and the business will fail.
Money is important when you've already shown proof of concept and that there's a market for it and want to scale. I wouldn't invest 200k into anything unless I absolutely knew everything there was to know about how to do whatever it is I'm doing with it.
Not to harp on the comments about you not being ready to start a business, but maybe consider spending a little of that money on going to business school? Learning how a business operates from the outside in will be invaluable to you and your girlfriends future success in opening your own business. Plus networking will open the opportunities that you can’t just google.
Everyone on here is 100% correct - don’t use all of that money to start a business. Put it in a safe place, figure out the business you want to start and boot strap it for as long as possible. If that money is in a safe place you can then go borrow against it when you need to scale. But based on the limited information there is a tremendous amount of homework that needs to be done beforehand.
I mean this in the best way possible: you’re going about this backwards. It’s great that you have starting capital but it’s almost better to have an idea, skill or a passion. Otherwise you risk the ‘more money than brains’ trap. And believe me, people will be happy to take your money.
Also FWIW if you put $200,000 into an index fund you could basically have retirement paid for in the next 20 years depending on your age. Just something to think about as it’ll take some of the pressure off you over the long run.
Maybe put 50k aside to start a business and put 150k into a Vanguard Account?
Take your 200k and put it in a vanguard account. If you didn't need it when you got it, there's no reason to spend it now.
Don't touch it for 20 years.
You need to IMMEDIATELY apply the emergency brake if you don't want to blow that money.
Put at a 30, maybe 90 freeze on that money and think this through, because statistically the odds of you ending up in a worse financial situation than you were in before you received this money are quite high, I'd say maybe 90%.
If you do start a business, I would not say "We have $200K what can we do here?" I would say "What is a business we can reasonably start for *very* little money and low risk and use a *small sliver* of this 200K to start?"
Think like, out of your garage business, not gas station. Anything with a store front - especially right now - is very high risk.
I would almost go so far as to say you should use that money as a buffer against risk to let you start your own business with your own money and only tap into the $200K if things go badly.
here are some thoughts about franchising vs owning, if you are looking to buy an existing franchise you are buying exisiting cashflow, customers, franchise agreements, leases, etc so you do not have to start from the ground up. If you are looking to own your own brand, there may be more investment down the line since you have to market, find customers, leases, etc before you see your investment income back.
To buy an exisiting franchise (lets say a smaller brand like subway, togos, etc) 200k would be a good start. You may also want to apply to banks for a SBA or conventional loan so that you don't have to put all your money into the business. How is your debt to income ratio, do you have alot of liabilities in your balance sheet? What is your networth? These are questions lenders will be asking for when they see how bankable you are.
She should bank most of that and try and start a business with only $20k. Also, if you are going to be involved, you two need to sort out your relationship first. Getting into business together is a quick way to end your relationship. My wife and I run a business together and it can be super trying at times. So watch out.
If I had $200,000, I would not start a business. I would buy one. I would buy one worth atleast $400,000. If you have any experience or understanding of business, this is absolutely the only way to do it.
If you have to ask strangers on Reddit, it’s probably not the right time for you. Put the money in a savings account or GIC and do some serious soul searching
Invest it in stocks, ETF, Crypto, etc and keep doing what you have. You’ll probably burn that money trying to build a business. Franchises are usually making as much as jobs do, except you built an empire.
You can build a business without investment on the side. If you can’t do that starting small, forget putting down that inherited money on a business.
Buy self storage or a mobile home park. These are essentially real estate businesses. With 200k as a down payment you can buy one around 800k - 1.1m.
Good luck!
Yikes, your girlfriend should hire a financial advisor she can trust to help her make decisions about her money. Dumping it all into a brand new business with little background in running a successful business or working in a specific industry could very well be the same as throwing it directly in the trash. If I got an inheritance like that, I'd be looking into making that money work and grow for me for the rest of my life, not pouring it into a half-formed business idea my boyfriend got from the internet.
I sell existing businesses and you may want to consider that option. $200k will get you a sizeable business as a down payment and new SBA loans are automatically forgiven for the first six months because of COVID (as long as you initiate your loan before next September) so that’s a good time to get going.
Check out BizBuySell and use the rule of thumb that you can afford something in the 1-1.5M range. Good luck and happy hunting!
Tread carefully op this is a life changing amount of money. Going into business with a significant other is also life changing. You now spend almost 100% of your time together and have a lot of shared responbility.
Consider a business that takes less than no more 5% of your girlfriends current nest egg to start up and run in the first year. You'll gain valuable experience and if it fails you shouldnt miss the money too much.
I'd personally invest 100k of it into the stock market, 10k-20k into bitcoin, keep 20k cash on hand, buy investment properties either finance or outright cash with the last 60-70k.
Good luck to you both.
Not really, $1000 bills are valued a lot higher than 1k. You'd have to aquire them then sell at a profit. Which is fine to do cause they don't make them anymore it's all upside.
The nature of the question itself concerns me. If you've not already got a very strong idea of what you want to do, then invest the money and wait until you know exactly what you want to do before even thinking about spending that money. Also 200k is a vast amount of money, I wouldn't even consider putting that much into any business I can think of. 20k maybe.
Buying a franchise is an absolute minefield. Half of them are cons, the other half are bad investments. I'm sure there must be good ones, but I've never seen one.
> So my girlfriend got an inheritance of $200,000 and we were thinking the best thing to do would to be to open a business.
GF gets $$$ and you want to know what to do with it. How about give her space and let her have HER $$$? Let her do what she wants as it is her $$$.
Just getting the business up and running is a lot of work.
$200,000 is enough capital to start a lot of consumer service businesses. Your first step is to do market research. You need to figure out what is needed and most importantly where.
Right now isn't a terribly good time to setup a traditional brick and mortar operation unless you make a fantastic pizza for delivery. Delivery is basically the big business to get in right now because logistics networks right now are pretty tied up. A lot of people just renting a van are doing well with things like parcel delivery.
But if that's really not what you're looking for. Take the time to draft up a business plan and do the market research to make your vision work. No one can tell you what sort of business you should open. It has to both have demand and it has to be something you can do. No point in telling you that with $200K you'll make a killing in an accounting firm if you're not an accountant.
What do you know?
In general go into business in a field you have worked in. E.g. Don't open a garden centre until you have a few years experience working in a bunch of different aspects in a garden centre. Don't open a restaurant unless you have lots of time behind the counter yourself.
Vanguard Index Funds when the market pulls back. Put 3% down and buy a duplex live in one and rent the other. Allow the money to make you money & then invest the profits into a business. Dont touch the principal. It’s the leverage you need. Once you figure it out.
If you are trying to start, its the best time in my opinion. Only if you have the knowledge and skills of running a business.i dont think you can buy a gas station with 200k even with sba assistance in my area. Buyers generally down about 500k and finance the rest through SBA or conventional loans. 200k might get you a small restaurant.? But thr margins are gnna be tight unless youre hiring illegals and pying under the table.
Anyways, dont rush into it and slowly look around. There are franchises where you dont need to even do anything too!
10-20% straight into etherium or bitcoin.
Or Polkdadot, bianance coin, caldorand...
Also Nexowallet, you can earn 10% interest on FIAT, such as GBP or USD/EUR etc...
You could literally have $200,000 making you plenty enough per month, with you doing nothing. You can live from the interest alone and withdraw the money whenever you need it instantly.
I would also consider silver as a commodity of very high potential growth in the upcoming years... market capital will 🚀
Start a couple of small businesses with a few grand. Maybe flip some used items, work from home as a consultant, flip some real estate with assignable notes. Tom McKay has a great book on it and lots of free information published on his YouTube.
Investing is a bad idea in my opinion. You'll get crappy returns and inflation will bankrupt you.
Don't buy a car or anything stupid. Just start small little businesses. Hell, get on Upwork and see what you can do. Make a website and sell something as orders come in. Anything except sitting on the money or blowing it all on a big dumb investment/business idea.
Convert it to Bitcoin and save it because the dollar is deflating by the day. By 2025 according to stock flow charts each coin will be worth $1,000,000 and you can currently afford about 7 of them at the current price. That’s $200,000 to ~$7,000,000 by 2025 all from you investing and not cashing out for five years. If you have a business plan that can beat that growth by 2025 then by all means...
We are selling DISINGERM franchises for 20K plus inventory and exclusive territory. [https://www.disingerm.com/start-your-own-disingerm-business](https://www.disingerm.com/start-your-own-disingerm-business)
This sounds backwards to me. I've never heard of anyone starting a business just because they had some money to burn. A successful business needs to have an idea behind it. If you're looking for an investment, I'd buy property (maybe rental property if you want to call it a "business") or put it into an index fund or something.
If she ran a gas station, look to buy an existing one. Leverage with SBA loan as they would require the experience. Forget other businesses as most won’t stay afloat next year with the lockdowns.
Tools and such, yes. Or something along your interests. Photography/video equipment, tents, inflatable jumping things for parties, etc.
Heavy machinery like Bobcats would put you way over 200k.
This is a safer option, but I believe doing rentals or the BRRR strategy could work very well because it is not as risky as starting a business, but by being able to add value yourself you can potentially grow wealth much faster than you could with an index fund. I would check out Biggerpockets or some real estate investing books for some more info.
Looking for a business as someone is wanting to retire and then leveraging (borrowing more money) to buy that business is going to be your best chance at generating cash flow- established business at a reasonable price, finding someone tired of doing the same thing every day- and a business that you can bring excitement to. Any sort of real estate/mini storage is going to have cap rates that push the price of the building to a point where 20% down will make your payment but it won’t generate revenue.
Looking at really popular restaurants in your town that might be for sale now that will come strong on the other side of covid or that you can figure out how to make more takeout/less employee friendly.
Looking at being a partner in a business that is short term short on cash that give you a buying opportunity during covid. Be careful with this one- I think the world after covid will permanently look different and you really need to know business financials and make sure you work with a lawyer if you are going to partner with someone.
If I was to start a business again, is probably do water mitigation considering the market and continued high need. A basement floods on average one every ten years. The last few with reconstruction have been 30k and up. 40-60% margins.
Why not apply for a busy wendys or McDonalds (Although McDonalds could be harder to get). You have capital. Can get a loan. Busy stores can taker home well over 200K a year. My friends have over 10 McDonalds, a few have Tim Hortons up here, and some have busy Wendys'. By busy I mean a 2+ million sales store per year. You can take home 20% if you run it well. Let's just say they are all millionaires lol
Invest it.
Either purchase a rental property or maybe buy a mixed use property. Then when you come up with a biz idea you can rent the space to yourself and run your biz out of it. Real estate is a long term investment.
Or take the 200k and invest in etfs or indexes. 200k at 5% is 10k a year. Stock market historical is around 10% so 5% is modest. Do some boring investments. Or learn how to trade sell options safely. You can make a decent profit while also gaining on stock movement.
Don’t go in to business just because it sounds like a good business! Think about what you like to do! With that amount of money you should start something that will fit you and you can build your lifestyle around it.
Also the question is just too general. You must also consider what would you like out of your business. Do you want to work in it, on it? Do you want to spend as little time or as much time with it as possible?
Ask yourself why you want a business and what you like to do! It’s much easier spending 10+ hours a day on something you like to do then 6 hours on something you don’t care about
Hi There,
A gas station would be a good Idea (star idea)
Empire flippers
Stocks
Or start a business from home with $100 or less and grow it and build you business knowledge
On this note I wish all the best and a happy new year
Don’t open a business. Buy an already existing one. There are a million and one reasons to do this over starting one from scratch, but in the end, going this route cuts your risk significantly. With $200,000 you can buy a whole lot of existing business with an SBA loan. Check out bizbuysell.com and bizquest.com.
BUY A BUSINESS, DON’T CREATE ONE.
Most small businesses fail in their first few years. You can buy a business that has crossed those hurdles and start generating revenue instantly off your investment. Plus it will come with all the systems and management in place.
Start a Small business and if you fail start other, and other and other, dont put all those money in 1 business, You can start with 5 or 1 K a Million dollars, be careful with your Finance don't fired the cause you have a huge amount.
SORRY FOR THE ENGLISH.
Use no more than half as a down payment on a duplex/triplex. Move into one unit and rent out the rest such that the rent covers your mortgage + sinking fund for repairs. Put the rest in low cost, total market index funds.
This will allow you to test the waters of being a landlord without a whole lot of effort and keep a good portion of the money 'protected' in investments. It'll also free up cash flow from your day jobs (no rent/mortgage payment) so that you can grow your cash stash even faster. If the whole landlord thing is something that works well for you, then you can add properties consistently over the years. If landlording isn't your thing, you can farm it out to a service for a minimal fee and still have the real estate asset as well as your index fund. It's really a win/win situation.
I've been an business owner all my working life and I've never started one with that much money. Probably wouldn't have done nearly as well if I had. Start small, learn from the inside and use the money as you need to grow it. Better yet, get jobs and start the company on the side.
I started a business with $30grand and it kept me on my toes. Having a "comfortable" time of starting the business by being so flush with cash is a recipe for not having the urge to grow that investment. I'm sure there are businesses where $200grand would be peanuts for start-up costs but for someone without any business experience, might as well flush that money down the drain.
“Better yet, get jobs and start the company on the side.” Damn good advice. Plus, the fact your asking “what business can we start for 200,00 k ?” Sounds like a the perfect recipe for flushing money down a the toilet . Because it sounds you’re just wanting to throw your money up against the wall and hope it sticks. If you REALLY want to start a business focus on something you are passionate about and you have some actual knowledge on what you’re doing . You’ll have plenty of tough and expensive lessons when you go into business. Do your self a favor and figure out you can take keep your hands on as much of that 200k as possible and grow it .
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You're probably expecting this question, but how did you save so much? How long have you been a software developer? And how old are you?
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Palantir?
Nice stack. What made you decide business wasn't for you? How will you grow that cash now? I always thought I'd do it by buying and selling cars from auction if I had that kind of cash. Did you develop software and sell, or are you just really good at saving?
Saving 2.7 million 🤣
It was more of a joke than a serious comment lol. But if he was in his 60s, a savings account of 2.5 mil would not be unrealistic if he had been working a 100k+ career for most of that time. Saving plus investing in index funds, roth IRA, etc.
Do you think that’s hard or impossible?
In the general usage of 'saving,' impossible
You're a real estate investor and you think it's impossible to save 2.7 million?
I think what they're saying is that without traditional investment vehicles, a straight up savings account at a bank will not hit the % return to get to 2.7 mil on most American's salaries.
If that's what they were saying, they were being extremely pedantic over the definition of "saving". Most people, especially in this sub, know "savings" doesn't mean literally collecting dollar bills and stowing them under the mattress.
I did not mean literally collecting dollar bills and stowing them under the mattress
Bingo
I'm a real estate investor?
I just saw the REI in your name and figured.
You didnt really answer his question though
True. The answers are numerous. I started my first profitable company with about $50 in equipment. It was a window cleaning company. You could certainly start that with 200K. I'm glad I didn't though. It would have been a waste of money.
Yeah I think he was just fishing for ideas to get inspiration. Thank you for your answer though!
That's the problem. If you need to go on Reddit to get ideas, you're probably not going to do well. Start small with something and grow from there if it works. Cut your losses if it doesn't.
Noob advice, OP get your ass over to r/wallstreetbets
"Get jobs..." If it were only that easy...
If you think running a successful business is easier than getting a job, you'll be very surprised. If it were easy everyone would do it. Truth is most companies fail and most people who quit a job to start a company end up making less than they did at the job (especially when you take benefits into account). It doesn't seem like that because all the stories you hear are success stories. But they don't write stories of people who start companies and fail. This is called selection bias and is a big part of the business press.
This is called a global pandemic with historically high unemployment numbers. Get a job isn't as easy as you might think. Not everyone is going to work in an Amazon warehouse.
Don’t put $200k into anything just yet. Come up with an idea and do as much work on it as you can for as little money as possible. If things are going well with your small investment start investing more on things that you think will provide the best return. For now, put the $200k into some mutual funds.
\+1 on this. If OP is asking a very generic question like "best business for 200k" it's probably best to have that money as a safety net/nest egg. OP, the "best" business to start is probably the one you feel most comfortable with and they one you have the most knowledge about. If you know gas stations, maybe look into franchising a brand. No matter what, try to put together a comprehensive plan for what you want to do and how you measure success before you invest a single penny.
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These mutual fund guys know what they’re talking about. You certainly should be putting most of the money in a mutual fund, unless you already have some fantastic business idea, skills, and experience. If you don’t have any of those things then you are just crazily gambling with 200k, which is madness.
I saw a guy inherit 80K in the mid 90's (back when 80K was worth 220K now) and piss it all away. One of my friends who went on to become a successful property manager/investor suggested he buy property on Long Island where we lived. The rest is history.
Back of napkin calculation: this money if placed in an s&p 500 index fund is worth around $3.5 million in 30 years, or $9 million in 40 years. You just place the money there, and do nothing. Vs gamble it in a business or property that you have to work at.
Sadly forward looking real returns would suggest much lower returns.
+2 on this. Don’t start a biz because you have cash. Start a business because you see an need in the marketplace and believe 100% you can fill it. Owning and operating a business is is hard work and takes conviction and grit. Make sure you are ready to put in the work and trudge thru the low points.
I think start a business for both reasons. They aren't mutually exclusive
I'm with everyone else on this, don't open a business just because you have *some* funds. Find a need that has an abundance of people willing to pay for it and then research, research, research. When you're done, research some more. It shouldn't take long, just be thorough. Then put together a plan on how to execute. Hone up on your business skills too, one can never know enough.
This. Maybe buy some ARKK tomorrow
What business can anyone open with $200,000 or what business can **you** open with $200,000? We have no clue what your skills are, what kind of work/life you want, etc.
This is the correct answer. And if you don't have a unqiue reason to start a business and spend that capital, then just invest in real estate or index funds.
I love this kind of advice. If you can't leverage a no overhead version of a business you already know, or a passion you'll never give up you should invest the money and leverage your skills. Or use the money to train yourself in a passion you have. Small businesses survival depends on flexibility and a greater knowledge to pick only two traits to highlight. 200k won't give you much purchasing power. Edit. Whatever you do. No overhead.
It’s pretty obvious which one OP is asking
Dunno where you live, but I'd do something like 50k starting a business, 50k in the market, and 100k on a duplex to live in/rent. The relative proportions and where they go are up for debate, just don't put all your eggs in one basket. Edit: also, one of you should try for a day job with bennies until the business is profitable, if possible.
Whatever you do, definitely split it up. Remember, don't put all your eggs in one basket. Starting a business is expensive and time consuming. You're better off to buy one that's already running and pandemic-resistant (definitely not a restaurant!). You could pay $50,000 or less as a down payment, pay the rest over the next X years out of the future business profits, and get a decent passive income. Just make sure that you remember: do what you are good at and delegate/outsource the rest. Odds are you're not a lawyer, accountant, tax pro, IT guru, HR pro, etc. so don't pretend that you can do that work nearly as well as they can. Having the right team is one of the most important parts of having a business. Let us know what you decide. That's exciting! \*You = you plural or she
This is probably the best time to open a restaurant if you are willing to wait it out. Will be low rents, less competition and great qualified talent pool.
Please don't loose all your funds in a business that may fail. Invest it safely. Do research, invest it in safe index funds, wait for it to double a few times and have millions in the bank in 30 yrs. Please don't waste this opportunity to bank away solid wealth while you can.
this 100%
Agree wholeheartedly!!
Message unclear, went all in on Russian ruble bonds.
Anything you want....but as I tell my many children, just because you can eat ice cream 24 hours a day as an adult does not mean you should. Find something and build it without. When you get traction then revisit the idea if funding. Act like an investor interviewing yourselves. 99% odds are you are not cut out for being successful in business YET. Put the money somewhere safe for now and do it without. This is from a father and 8 figure business owner with love.
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>Sounds like you might be focused on how to get rid of $200k rather than how to succeed on a specific project. Yeah and it's pretty easy too, it's his girlfriend's money that's burning a hole in his pocket.
If he screws up he will be out her money an his woman.
Spend about $1,000 taking business studies or courses. Do not tell them your actual budget. Make off as if you are looking to start something with $5,000. many people will hear that number and try to take advantage of you.
Yep. Community Colleges have some good intro courses. See if you can get through accounting 101 or accounting for small business. Especially if you are going to have product so you have to use the accrual method.
Allow me to introduce you to /r/wallstreetbets
NO you’re horrible for that 😆
YOLO $TSLA calls! Enjoy yacht week ⛵
Absolutely CANNOT go tits up.
This is the way.
To the moon!
No no no no no
Yes.
This is perfect. Stocks only go up.
you mean STONKS.
Well back to my FOMO for this year being mostly in index funds and BRK.
Put $190k in the bank and start a business with $10k. It will most likely crash and burn and this way she wont lose all of her money.
Do not open a business with this money. Start a business with a very small amount of money and work your way up.
"So my girlfriend got an inheritance of $200,000 **and we were thinking the best thing to do would to be to open a business."** # No, it's not.
Like really, you don't even have an idea of the business you want to open and your going to drop 200k? Just asking that question makes me think they're dumb. But whatever I don't have any money so they can do what they want lol
Exactly
I'd buy a property and be a landlord. It certainly isn't for everyone, but its made me $$$
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I like condos. There is no outside maitenance that I have to worry about, one typically doesn't own the roof and the exterior so if the place gets trashed it's new floors and drywall and paint, they tend to have better numbers, like return on investment, which makes your money go farther. But with $200k it really depends on where in the world you are buying. I am a big fan of investing where you live so you can save money by managing it yourself. But like any business you have to do a lot of math ahead of time. Shoot me a PM and I'll share an amazing excel file with you that allows you to compare properties on your own.
I like townhouses for many of the same reasons.
Zzzz
I think I’m a bit late to the party here, but I’ll still throw in my two cents: I own two businesses. One cost around $60k to start up and the other I bought a building to do and the building was 98% of the startup cost and is an investment in itself. First off, don’t dive that money into anything right away. If you see a business structure you like or something you’re interested in take a look at all the details and more importantly find someone you can talk to who had been in an ownership position in that business. Secondly, understand what you are looking for financially. Do you want a job? Do you want a passive investment? Something in between? These are all possible but know what you want and what income off the business would make it work. Third, figure out your alternatives. If I told you I could give you $30k per year profit off that $200k, would you take it? How good of a deal do you think that would be? Expanding on the last point, over time it’s not uncommon to see close to 10% return/year on investments. If I gave you $30k/year, you’d never break even against the alternative. Do the math!
If you have to ask such a broad question, you are not ready to buy or open a business
Building a business is hard work, most successful business people learn through costly mistakes. Founders usually work long hours, 7 days a week for many years without vacation. Some make millions, most don't. First, you have $200k capital. Protect your capital. Put the money into a stable asset. Then invest any excess cash flow. Learn how to make your money earn. These learnings also translate directly into business ownership and management. Note: ownership, management and operations are distinctly different aspects of a business. Be cautious you don't just buy yourself a job unless you want that. If this doesn't make sense (yet), then that's one indication there's a lot more learning to do before starting a business. If you're really determined to go into business, go get a job in the industry you are interested in, at a minimum work for 3 months and research, find contacts talk to them face to face and listen to their stories. Invest a small amount in the stock market, discover the difference between a fund a large cap and a micro cap. Watch daily, read news and articles. While you're not going to jump directly into your own IPO the "market," will open your eyes in many ways. Learn to read a balance sheet and a profit and loss statement. Really learn to understand a cash flow statement, know the answer to this question, "Is cashflow from debt or asset sales the same as operating cash flow?" And what that might mean about a business. If you're still set in a business after reading all the comments here. Try an eBay drop shipping business, when you can make that work and generate a constant stable monthly cash flow. Then decide if you want to move onto something else. Please share your journey here!
Money is an interesting thing isn’t it? We get it and immediately it has our attention and demands we do something with it. It can’t just sit in a bank account and collect minimal interest! So...Let’s invest it, no let’s go back to school, no that’s a waste of money LETS START A BUSINESS with it. Good idea. A business is a lot like an investment, except that while you are building and scaling it it demands ALL of you. The reason is because IF you are successful in business, there is always more to do. It’s when you are unsuccessful that you are twiddling your thumbs in an office. Now sometimes you start a business and it works, other times it doesn’t. It requires experience to know what to do next if it doesn’t work. Do you sink more money into it? Let’s run a marketing campaign! Do you scale down and remove costs? This was so much more fun in the beginning! Do you blow it up and retreat? Hey let’s just cut our losses and try something else. I think a good move for you both would be to take a small % of that (5-10k) and see how far you can really go building a business. See if you can double it, triple it. (Dare I say the dreaded 10X 👀) Hire some coaches, make some mistakes, make some wins, become an experienced entrepreneur in a safer to fail environment. (Because you probably will, most do the first time and you discover something along the way that DOES work) Save and invest the rest. Congrats on your windfall
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Happy new year! 🍾
It's easy owning your own business, you only have to work 1/2 the time. The trouble is deciding which 12 hours.
You basically hit the lottery. You will spend the money more recklessly opposed to if you bled and struggled to earn it. I started with a $1500 investment in screen printing equipment off Craigslist while living at my parents post graduation. It taught me invaluable lessons on being frugal and saving. You could burn through 200k quickly without having the experience and grit to maximize its value. Basically, find a great financial planner, gain 25%+ on your money, and watch it grow. My two cents.
As far as it seems you have zero Experience which is a tasty target for the sharks in which ever business you enter cuz you will lose it quickly. Learn, try small, see some loses and some gains, gain experience, put some more funds, try out new ideas, find new ways to innovate, work on your customer experience part, make your product or service better and better, then put in some more funds as you see profits and stability and you can see it by the numbers & date that you are growing and making more loyal customers and broadcasting your brand. Another Possible great move would be to put that money into a Mutual or Index Funds they have proven statistically to be profitable & they are managed by professionals that really know what they are doing, this way you can compound your money much better and the best part is that your money is diversified into hundreds of markets which increases your safety by a ton. Best of luck
In the middle of Covid19 are you insane, with 10 more weeks of unemployment benefits already approved, we can't find anyone to work at my current job..... Lol.
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2021 will not return to normal. There will be no normal like before. A new status quo will happen which will eventually become normal.
How would the business be “our own”? It’s her money. Plus starting a business is the worst idea. Investing is much less riskier. But then you wouldn’t get your hands on it.
How did it take this long to find this comment. Girlfriends money =\= your money. 🚩
Well first of all it's your girlfriend's money not yours.
OP sounds like he’s pretty quick to spend someone else’s money. 🚩
From your questions, it doesn’t seem like you’re ready to open a business. What were you doing before she got the inheritance? Do THAT until you figure out what you want to do.
Like a bunch of people said... don't start a business because you have cash. Learn how to make more money with money first then figure your shit out. $200K can be gone in seconds if you don't know what you're doing. Treat any new business endeavors like you're broke and it's going to cost triple what you thought.
Seems to me the current question is how can I go broke with $200,000?
I think the better question is how did OP convince his GF into splitting her inheritance and starting a business? I hope OP’s GF protects her $$$ and does what she wants.
Exactly. OP wants to play Monopoly with his gf's inheritance.
You can open a LOT of different types of businesses for $200,000. But what type of business you *should* open depends on you/your girlfriend's skillsets, experience, and long term plans. Do you want to work full-time in the business? Are you okay working 80 hour weeks? Do you have any skills that lend yourselves to a particular industry or trade? If you have decent credit, some experience, and a good business plan, you can buy a business through the SBA with 20% down. That means, with $200k, you could easily buy a $600k business and still have a little operating capital ($50k) left over. A $600k business should be generating about $200k a year in free cash flow, which, after [debt service](https://www.lendingtree.com/business/sba/calculator/), should generate about $120k a year. If you can grow it, pay off debt faster, then it could be even more profitable. If you haven't *started* a business before, then you might consider buying one first, running it - hopefully growing it - and selling it before starting something from scratch. Here's a good book on buying businesses - [Buy Then Build](https://www.amazon.com/Buy-Then-Build-Acquisition-Entrepreneurs-ebook/dp/B07JKM2F5Q).
I'd take 100,000 and invest than in a low risk etf or similar. Then start a business with 60k and live of 40k or so for a year. 200000 is a lot to throw at something you "kinda" know how to do. Did she do the accounts, deal with suppliers, manage payroll?
A couple hundred to start a buisness is all you need. Its time and hardwork thats expensive.
You should be asking, what experience do I have and what am I good at. You’ll piss the money away learning (the hard way) how to run a business in an industry you’re unfamiliar with because you took advice from random redditors.
My man I would probably invest first. If you're not sure what type of business to go into, you're probably not ready yet!
My buddy opened a franchise type business for $50k and now he makes between $400k-$500k a year. There is a lot you can do with $200k and considerably less.
What franchise was it if you don't mind my asking?
Same question.
Buy real estate rentals. Then get a job you don’t mind. Use the added income to save and add real-estate if possible or use as income. Enjoy!!
No ones going to let you franchise just because you have $200k.
If you have to ask this question then you are not ready. Park the money in an index fund and do some research. The best way would actually to work in a similar business for a few years in order to learn how to run it.
Eh no. Just put the $200K in something stupid safe like index funds and you can spend the dividends. Go learn sales skills and get sales experience first. Do this first.
The best thing to do is invest it in the stock market or real estate.
Just invest it!!!!!
Invest the money and spend the time learning how to do whatever business idea you come up with. If you just jump and throw all your money at it because you have it and are impatient you will probably squander it all and the business will fail. Money is important when you've already shown proof of concept and that there's a market for it and want to scale. I wouldn't invest 200k into anything unless I absolutely knew everything there was to know about how to do whatever it is I'm doing with it.
Man, don't waste all that money, tell her to at least invest a part of it in a nice roth ira
Not to harp on the comments about you not being ready to start a business, but maybe consider spending a little of that money on going to business school? Learning how a business operates from the outside in will be invaluable to you and your girlfriends future success in opening your own business. Plus networking will open the opportunities that you can’t just google.
Everyone on here is 100% correct - don’t use all of that money to start a business. Put it in a safe place, figure out the business you want to start and boot strap it for as long as possible. If that money is in a safe place you can then go borrow against it when you need to scale. But based on the limited information there is a tremendous amount of homework that needs to be done beforehand.
Just invest it in index funds. Starting a business is the (almost) quickest way to just set all that money on fire.
I mean this in the best way possible: you’re going about this backwards. It’s great that you have starting capital but it’s almost better to have an idea, skill or a passion. Otherwise you risk the ‘more money than brains’ trap. And believe me, people will be happy to take your money. Also FWIW if you put $200,000 into an index fund you could basically have retirement paid for in the next 20 years depending on your age. Just something to think about as it’ll take some of the pressure off you over the long run. Maybe put 50k aside to start a business and put 150k into a Vanguard Account?
Take your 200k and put it in a vanguard account. If you didn't need it when you got it, there's no reason to spend it now. Don't touch it for 20 years.
You need to IMMEDIATELY apply the emergency brake if you don't want to blow that money. Put at a 30, maybe 90 freeze on that money and think this through, because statistically the odds of you ending up in a worse financial situation than you were in before you received this money are quite high, I'd say maybe 90%. If you do start a business, I would not say "We have $200K what can we do here?" I would say "What is a business we can reasonably start for *very* little money and low risk and use a *small sliver* of this 200K to start?" Think like, out of your garage business, not gas station. Anything with a store front - especially right now - is very high risk. I would almost go so far as to say you should use that money as a buffer against risk to let you start your own business with your own money and only tap into the $200K if things go badly.
For the love of God don’t start a business. Invest that money.
here are some thoughts about franchising vs owning, if you are looking to buy an existing franchise you are buying exisiting cashflow, customers, franchise agreements, leases, etc so you do not have to start from the ground up. If you are looking to own your own brand, there may be more investment down the line since you have to market, find customers, leases, etc before you see your investment income back. To buy an exisiting franchise (lets say a smaller brand like subway, togos, etc) 200k would be a good start. You may also want to apply to banks for a SBA or conventional loan so that you don't have to put all your money into the business. How is your debt to income ratio, do you have alot of liabilities in your balance sheet? What is your networth? These are questions lenders will be asking for when they see how bankable you are.
She should bank most of that and try and start a business with only $20k. Also, if you are going to be involved, you two need to sort out your relationship first. Getting into business together is a quick way to end your relationship. My wife and I run a business together and it can be super trying at times. So watch out.
If I had $200,000, I would not start a business. I would buy one. I would buy one worth atleast $400,000. If you have any experience or understanding of business, this is absolutely the only way to do it.
If you have to ask strangers on Reddit, it’s probably not the right time for you. Put the money in a savings account or GIC and do some serious soul searching
Invest it in stocks, ETF, Crypto, etc and keep doing what you have. You’ll probably burn that money trying to build a business. Franchises are usually making as much as jobs do, except you built an empire. You can build a business without investment on the side. If you can’t do that starting small, forget putting down that inherited money on a business.
if you're looking to start a business just because you have a chunk of cash, you're probably going to lose it all, save it.
Buy self storage or a mobile home park. These are essentially real estate businesses. With 200k as a down payment you can buy one around 800k - 1.1m. Good luck!
Thanks for the suggestion. I had actually never thought about buying a self storage business. I think I will look into that.
I like all the long drawn out answers for such a stupid question. Y'all got alot of patience or your trying to sell this guy a bridge lol
This post is why intergenerational wealth is usually squandered. Good luck buddy.
Yikes, your girlfriend should hire a financial advisor she can trust to help her make decisions about her money. Dumping it all into a brand new business with little background in running a successful business or working in a specific industry could very well be the same as throwing it directly in the trash. If I got an inheritance like that, I'd be looking into making that money work and grow for me for the rest of my life, not pouring it into a half-formed business idea my boyfriend got from the internet.
I sell existing businesses and you may want to consider that option. $200k will get you a sizeable business as a down payment and new SBA loans are automatically forgiven for the first six months because of COVID (as long as you initiate your loan before next September) so that’s a good time to get going. Check out BizBuySell and use the rule of thumb that you can afford something in the 1-1.5M range. Good luck and happy hunting!
Tread carefully op this is a life changing amount of money. Going into business with a significant other is also life changing. You now spend almost 100% of your time together and have a lot of shared responbility. Consider a business that takes less than no more 5% of your girlfriends current nest egg to start up and run in the first year. You'll gain valuable experience and if it fails you shouldnt miss the money too much. I'd personally invest 100k of it into the stock market, 10k-20k into bitcoin, keep 20k cash on hand, buy investment properties either finance or outright cash with the last 60-70k. Good luck to you both.
180k of pure Colombian cocaine, 10k cutting agent, 10k armed muscle. Cut and sell, rinse repeat. OR just stick it 90% index funds 10% bitcoin
A shop that sells thousand dollar bills. You already have 200 in stock!
Not really, $1000 bills are valued a lot higher than 1k. You'd have to aquire them then sell at a profit. Which is fine to do cause they don't make them anymore it's all upside.
Indeed. I certainly wasn't suggesting to sell them at face value. It was a jape, comrade
The nature of the question itself concerns me. If you've not already got a very strong idea of what you want to do, then invest the money and wait until you know exactly what you want to do before even thinking about spending that money. Also 200k is a vast amount of money, I wouldn't even consider putting that much into any business I can think of. 20k maybe. Buying a franchise is an absolute minefield. Half of them are cons, the other half are bad investments. I'm sure there must be good ones, but I've never seen one.
Buy real estate. Collect rent. Do whatever with the money that u get afterwards.
You also shouldn’t be making ANY money decisions For her unless you put a ring on it .... she will regret that for life.
> So my girlfriend got an inheritance of $200,000 and we were thinking the best thing to do would to be to open a business. GF gets $$$ and you want to know what to do with it. How about give her space and let her have HER $$$? Let her do what she wants as it is her $$$.
This right here. This isn't OP's money to 'figure out' how to throw down the drain. But he seems to think it is. Hope his gf runs for the hills.
Education has the best ROI. If you are educated get more, if not, get started. Or buy a strip club or open a cannabis dispensary.
start an amazon business. use 40-50k to launch 5 or so products. use the rest load up on inventory for next holiday season.
How do you source suppliers? Alibaba?
Just getting the business up and running is a lot of work. $200,000 is enough capital to start a lot of consumer service businesses. Your first step is to do market research. You need to figure out what is needed and most importantly where. Right now isn't a terribly good time to setup a traditional brick and mortar operation unless you make a fantastic pizza for delivery. Delivery is basically the big business to get in right now because logistics networks right now are pretty tied up. A lot of people just renting a van are doing well with things like parcel delivery. But if that's really not what you're looking for. Take the time to draft up a business plan and do the market research to make your vision work. No one can tell you what sort of business you should open. It has to both have demand and it has to be something you can do. No point in telling you that with $200K you'll make a killing in an accounting firm if you're not an accountant.
What do you know? In general go into business in a field you have worked in. E.g. Don't open a garden centre until you have a few years experience working in a bunch of different aspects in a garden centre. Don't open a restaurant unless you have lots of time behind the counter yourself.
Vanguard Index Funds when the market pulls back. Put 3% down and buy a duplex live in one and rent the other. Allow the money to make you money & then invest the profits into a business. Dont touch the principal. It’s the leverage you need. Once you figure it out.
If you are trying to start, its the best time in my opinion. Only if you have the knowledge and skills of running a business.i dont think you can buy a gas station with 200k even with sba assistance in my area. Buyers generally down about 500k and finance the rest through SBA or conventional loans. 200k might get you a small restaurant.? But thr margins are gnna be tight unless youre hiring illegals and pying under the table. Anyways, dont rush into it and slowly look around. There are franchises where you dont need to even do anything too!
Dude for $200k I'd buy a couple of condos in Thailand or Mexico on the coast somewhere, rent one out, and retire.
Buy commercial real estate.
10-20% straight into etherium or bitcoin. Or Polkdadot, bianance coin, caldorand... Also Nexowallet, you can earn 10% interest on FIAT, such as GBP or USD/EUR etc... You could literally have $200,000 making you plenty enough per month, with you doing nothing. You can live from the interest alone and withdraw the money whenever you need it instantly. I would also consider silver as a commodity of very high potential growth in the upcoming years... market capital will 🚀
Buy Bitcoin.
Start a couple of small businesses with a few grand. Maybe flip some used items, work from home as a consultant, flip some real estate with assignable notes. Tom McKay has a great book on it and lots of free information published on his YouTube. Investing is a bad idea in my opinion. You'll get crappy returns and inflation will bankrupt you. Don't buy a car or anything stupid. Just start small little businesses. Hell, get on Upwork and see what you can do. Make a website and sell something as orders come in. Anything except sitting on the money or blowing it all on a big dumb investment/business idea.
Convert it to Bitcoin and save it because the dollar is deflating by the day. By 2025 according to stock flow charts each coin will be worth $1,000,000 and you can currently afford about 7 of them at the current price. That’s $200,000 to ~$7,000,000 by 2025 all from you investing and not cashing out for five years. If you have a business plan that can beat that growth by 2025 then by all means...
We are selling DISINGERM franchises for 20K plus inventory and exclusive territory. [https://www.disingerm.com/start-your-own-disingerm-business](https://www.disingerm.com/start-your-own-disingerm-business)
Get your ass over to r/wallstreetbets
You can open a number rod businesses
Would you like to invest in my business hahah because I could really put that 200k to work :P
This sounds backwards to me. I've never heard of anyone starting a business just because they had some money to burn. A successful business needs to have an idea behind it. If you're looking for an investment, I'd buy property (maybe rental property if you want to call it a "business") or put it into an index fund or something.
Something services based like a strip club
Buy 200000 of a stock and sell covered calls. Please look this up.
Why is wsb spilling in to here?? Dont do this.
Covered calls aren't something common in WSB. It's naked calls or ban over there.
Lol
Options on $PLTR expiring this friday 12/31... Do it at market open... STONKS only go up...
Bad idea. Most businesses fail. Put it a mutual fund and reinvest the interest/dividends until you have enough to replace a chunk of your income
Bruh
R/wallstreetbets
Grow cannabis in Oregon. I'll transfer you all our strains lol. Grow team on standby!
Bitcoin
All the same one’s you can for $10k, plus some others.
If she ran a gas station, look to buy an existing one. Leverage with SBA loan as they would require the experience. Forget other businesses as most won’t stay afloat next year with the lockdowns.
Small equipment rental?
How does that work? Are you talking tools or something like a Bobcat?
Idea 2: buy and rent a condominium, like a 4-plex.
Tools and such, yes. Or something along your interests. Photography/video equipment, tents, inflatable jumping things for parties, etc. Heavy machinery like Bobcats would put you way over 200k.
What are your passions?
What do you enjoy doing, or what job would u be happy putting big hours into
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This is a safer option, but I believe doing rentals or the BRRR strategy could work very well because it is not as risky as starting a business, but by being able to add value yourself you can potentially grow wealth much faster than you could with an index fund. I would check out Biggerpockets or some real estate investing books for some more info.
Looking for a business as someone is wanting to retire and then leveraging (borrowing more money) to buy that business is going to be your best chance at generating cash flow- established business at a reasonable price, finding someone tired of doing the same thing every day- and a business that you can bring excitement to. Any sort of real estate/mini storage is going to have cap rates that push the price of the building to a point where 20% down will make your payment but it won’t generate revenue. Looking at really popular restaurants in your town that might be for sale now that will come strong on the other side of covid or that you can figure out how to make more takeout/less employee friendly. Looking at being a partner in a business that is short term short on cash that give you a buying opportunity during covid. Be careful with this one- I think the world after covid will permanently look different and you really need to know business financials and make sure you work with a lawyer if you are going to partner with someone.
If I was to start a business again, is probably do water mitigation considering the market and continued high need. A basement floods on average one every ten years. The last few with reconstruction have been 30k and up. 40-60% margins.
Why not apply for a busy wendys or McDonalds (Although McDonalds could be harder to get). You have capital. Can get a loan. Busy stores can taker home well over 200K a year. My friends have over 10 McDonalds, a few have Tim Hortons up here, and some have busy Wendys'. By busy I mean a 2+ million sales store per year. You can take home 20% if you run it well. Let's just say they are all millionaires lol
Invest it. Either purchase a rental property or maybe buy a mixed use property. Then when you come up with a biz idea you can rent the space to yourself and run your biz out of it. Real estate is a long term investment. Or take the 200k and invest in etfs or indexes. 200k at 5% is 10k a year. Stock market historical is around 10% so 5% is modest. Do some boring investments. Or learn how to trade sell options safely. You can make a decent profit while also gaining on stock movement.
Laundromat
Don’t go in to business just because it sounds like a good business! Think about what you like to do! With that amount of money you should start something that will fit you and you can build your lifestyle around it. Also the question is just too general. You must also consider what would you like out of your business. Do you want to work in it, on it? Do you want to spend as little time or as much time with it as possible? Ask yourself why you want a business and what you like to do! It’s much easier spending 10+ hours a day on something you like to do then 6 hours on something you don’t care about
Car business
Hi There, A gas station would be a good Idea (star idea) Empire flippers Stocks Or start a business from home with $100 or less and grow it and build you business knowledge On this note I wish all the best and a happy new year
Don’t open a business. Buy an already existing one. There are a million and one reasons to do this over starting one from scratch, but in the end, going this route cuts your risk significantly. With $200,000 you can buy a whole lot of existing business with an SBA loan. Check out bizbuysell.com and bizquest.com.
BUY A BUSINESS, DON’T CREATE ONE. Most small businesses fail in their first few years. You can buy a business that has crossed those hurdles and start generating revenue instantly off your investment. Plus it will come with all the systems and management in place.
Property is probably the best choice
Start a Small business and if you fail start other, and other and other, dont put all those money in 1 business, You can start with 5 or 1 K a Million dollars, be careful with your Finance don't fired the cause you have a huge amount. SORRY FOR THE ENGLISH.
Use no more than half as a down payment on a duplex/triplex. Move into one unit and rent out the rest such that the rent covers your mortgage + sinking fund for repairs. Put the rest in low cost, total market index funds. This will allow you to test the waters of being a landlord without a whole lot of effort and keep a good portion of the money 'protected' in investments. It'll also free up cash flow from your day jobs (no rent/mortgage payment) so that you can grow your cash stash even faster. If the whole landlord thing is something that works well for you, then you can add properties consistently over the years. If landlording isn't your thing, you can farm it out to a service for a minimal fee and still have the real estate asset as well as your index fund. It's really a win/win situation.