Start Part-time business with SSIA payout

M

mg21

Guest
I have always wanted to be self employed - even on a part-time basis. As my SSIA is about to mature ( approx € 20,000 ) has anyone got any ideas about starting a part-time business with this cash.
Most of my working life has been in Sales ( mainly staple goods ) due to redundancy I now work as a technician ( 58 years old )
I am big into DIY / art / photography / recycling own my own house also have large brick shed for storage / workshop
 
Personally I think - if you want to - go ahead and set up a part time business, but invest the 20k in something else... a small part time business should be set up using as little money as possible. I've a (seriously) part time service business that cost less than €100 to set up, but should generate income (after costs) of 4k this year and 8k or more next year.

I believe you will be tempted to spend more than you actually need to, simply by the fact that you are mentally assigning the SSIA money to the business. Sit down, think hard, make a list of every conceivable cost, then cost the first years operation. Think about the revenue, will it arrive after or before major costs have been experienced? If you think the business will cost €10k in year one, add a third to costs for worst case scenario and reduce revenue by a third. Will you need 10k cash from outset or will the revenue cover some of the costs across the year. You may only need 5k to start.

Once you've figured out the amount you really need, say 5k, put 10k in some investment, 5k in an esay to access account (e.g. a deposit account) and the remaining 5k into the business. That means should the 5k be insufficent you can withdraw another 5k easily to support the business, yet the remaining 10k can continue to grow somewhere else.

Best of look if you decide to take the plunge.
 
Good advice there!
Do not proceed without a plan!
Do something you love and that you are good at.
If you are really good at it.....DIY would be an excellent kick-off.
Start with posting a few notices on local shops that handyman available.
Know what you are going to specialise in and what you are going to charge. You'll be inundated with work!
If you are good at Sales, think about working for a few different businesses that cannot afford a full time Sales person, but on a Commission only basis. Plan, Plan, Plan!
 
I'd strongly agree with both of these. If you're thinking of starting a business, think of it as just that: a business (and not as a home for investment funds). Do it because it's a good idea and it'll generate income, not because you have the cash available. My inclination would be to start small and keep cash expenditure to an absolute minimum. The key thing is planning: work out potential sales and likely costs over a year, prepare a budget and see does it make sense. You don't have to stick to the plan rigidly - it'll change in any case as you get experience of trading - but preparing one will make you think through things in detail. The last thing you want is for your savings to be used to subsidise a loss making enterprise.

Given the areas you mention, I think something arising out of DIY would have the highest demand.

Keep in mind one thing though: turning hobbies into businesses can make you loose your enthusiasm for them, but that's just life....

Best of luck!
 
I agree with Ang1170, be very careful when turning a hobby into a career. If your business fails you loose your hobby too. Have you thought about a low investment franchise? If you are good at sales there are many of these available from http://www.franchisedirect.co.uk/ . You could even work from home or online if you know your way around a computer and of course you are because your on here! Good luck with it.
 
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