Possible investment scam?

Savvy_Sue

rayjay01 wrote: »

I didn't say I was impressed by her, I said her house was impressive. Which would suggest she must have done well for herself. Whether that was scamming people remains to be seen.

an impressive house means nothing. You have no idea how she acquired it (inheritance, divorce settlement, mortgaged to the hilt when she had a functioning business). You have no idea what its mortgage status is (could even be under threat of repossession, and it would still look impressive).

I think people running a business thrive best when it's something they feel passionate about. It's no guarantee of success, of course, but being your own boss is never 'easy' money, so working 70+ hours pw on something you actually enjoy doing is always a good start.

So, what are your passions? If not recruitment, then move on at a brisk trot. (Actually, even if it is recruitment, this sounds like something to move on from at a brisk trot.)

rayjay01

PDC wrote: »

Sounds to me it could be a very expensive "learning opportunity".

I can't understand why would you consider going into business with someone who you don't trust?

It was a circumstantial situation. I had actually mentioned a potential business idea to my father the night before, which ironically, involved the recruitment industry. I had to at least hear what was on offer. And I'm not definitely going through with anything. I just want to have all the information to hand.

tacpot12 wrote: »

I find that very hard to believe. Even working in the most menial job you have the opportunity to learn something about how the business works. And all businesses basically work in the same way: find out what customers need, fill the need for a cost that is less than the customer is prepared to pay

I appreciate your opinion, however, I work in the catering industry. I know how much money had to be invested into the into this business, and it was far more than I could currently afford. Don't get me wrong, I've had many smaller ideas, but after weighing up most of them, it's either already been done, or it's an idea that I would rather put on the burner while I continue saving for something better.

tacpot12 wrote: »

However, you may not actually be cut out to be an entrepreneur. You could invest your savings in businesses with proven management teams.

It's hard to fully get across how passionate I am about this. It's genuinely all I want to do in life. I'm not talking about becoming a multimillionaire, I don't want to start a business because I want fast cars or a nice house. I want to be able to work my !!!! off and reap the benefits of what I put into something for myself. I dream about waking up early in the morning, going to an office/warehouse/unit. Working the 12/14 hour shifts (if not more) that I currently already do for someone else. Everyday would be a new opportunity to try something new to benefit the business. It would just be so rewarding.

My problem is finding a good enough niche, or even a starting point to enter so many saturated markets.

I won't ever give up, and I'll continue to save money until I find that niche.

AndyPix

rayjay01 wrote: »

[STRIKE]Possible[/STRIKE] Definite investment scam

There you go .. FTFY

lebowski1980

rayjay01 wrote: »

It's hard to fully get across how passionate I am about this. It's genuinely all I want to do in life. I'm not talking about becoming a multimillionaire, I don't want to start a business because I want fast cars or a nice house. I want to be able to work my !!!! off and reap the benefits of what I put into something for myself. I dream about waking up early in the morning, going to an office/warehouse/unit. Working the 12/14 hour shifts (if not more) that I currently already do for someone else. Everyday would be a new opportunity to try something new to benefit the business. It would just be so rewarding.

My problem is finding a good enough niche, or even a starting point to enter so many saturated markets.

I won't ever give up, and I'll continue to save money until I find that niche.

I just wanted to say firstly that i admire your passion and would say to you to never let it go. I too have that same passion and it can be a great driver for achievement. It can also lead to impatience and impulsiveness (which i have learned first hand through previous investments). When it comes to investing and making a commitment like this, for me, it needs to feel and look right. Sometimes your enthusiasm for just getting something done can pull you towards opportunities because you are scared that there is nothing else.

If i was in your position and wanted to entertain this idea in any way i would be looking for that person to produce a business plan and demonstrate that they have the ability to use my investment properly. £5k isn't lot to get a business up and running in the grand scheme of things so you need to see that every penny is adding value to the business.
Personally, this does not sound like a good opportunity as it stands and i would be worried that your passion for wanting to run your own business would be soured by potentially having a business partner (or boss) that dictates the day to day running of things thus leaving you feeling disheartened at not achieving the freedom you sought.

I have started up a business this year alongside my full time job in the hope that i can become independent one day but it is tough and you need commitment and passion so to echo the voices above, choose something you are passionate about. If you are not sure, get a job and/or study that industry before committing.

If someone was to ask you the question 'What are you passionate about?' or 'What makes you want to get up in the morning?' or 'What positive impact could i have on the world around me?' what would you answer with?

Forget about niche being an entire thing. I'm an accountant. So are many, many other people. The best niche thing i can offer in my industry is myself - that is to say my integrity, my personality and of course my professional aptitude. My aptitude helps me to do my job, my personality helps me to earn and retain clients and my integrity helps me to wake up each morning feeling good about what i do.
I'm not breaking any worldy boundaries (yet!) but my point is, start with yourself and grow out from there. Don't look at everything as a barrier - think about how barriers can be broken or what you can do to make something better or competitive.

I could go on and on because i tend to waffle sometimes especially when someone is wanting to make a positive step but the key point is that you shouldn't let anyone extinguish that flame of passion you have as you will need it when it comes to the reality of being your own boss.
I wish you the best of luck in your pursuits

Percy1983

Well in simple terms this is a scam so don't touch.

Past that I think you are going the wrong way about starting a business, what are you passionate do you have any ideas of a business to work with that passion?

I ask this as my business came about from somebody asking me to do a hobby of mine for them over 10 years ago which grew and grew until I could give up the day job. I never set out to start a business.

Past that being self employed doesn't mean you will have more money, I do miss the regular predictable nature of my previous income.

Vectis

So, instead of getting proper professional legal advice, you though you'd ask on an internet forum?

CKhalvashi

As others have said, this seems dodgy.

It would seem much less dodgy with a proper business plan, access to contacts and complete openness about how the money is to be spent etc.

Even then I’d be looking to invest directly in things like office rent and marketing (bypassing the company account but loaning the company the money) and insisting on dual mandates than giving someone a wad of cash and letting them get on with it,

That may be because after many years in business I don’t trust many people, it may also be because it’s the best way of being sure I’m not walking into being ripped off, in reality it’s both. If she’s won’t agree to the above arrangements, walk away.

Good luck with whatever venture you choose eventually, you seem someone who should be in business and who would make a good job of it rather than someone in it for a quick buck!

AnotherJoe

Spend 1% of the £5k on a pair of trainers, and use them to run away very quickly.

You'll end up £4,950 better off.

Mistral001

Just a word of advice to the original poster. If you are "passionate about running your own business", never tell anybody this, unless you want to enter a reality TV show - which btw is not reality but show business. In the real world people who tell others that they are passionate about running their own business are low hanging fruit to scammers.

It looks like this lady did not need to enter the orchard to find her low hanging fruit.