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    • Howll
    • By Howll 26th Mar 19, 5:32 PM
    • 2Posts
    • 0Thanks
    £2500 to start a business. What could I do?
    • #1
    • 26th Mar 19, 5:32 PM
    £2500 to start a business. What could I do? 26th Mar 19 at 5:32 PM
    I recently won £5000 at Bingo, split between my partner and I. The plan was to pay £2500 each off of our credit cards.

    However, after yet another challenging and soul sucking day at work, I got to thinking how I could perhaps start a small business with my share of the money instead.

    Itís a risk of course, but at the moment Iím just fed up with my current situation. I hate my job, Iíve no motivation.

    I was looking into a small business franchise but I really donít know what is ďlegitĒ. Anyone else have any experience starting up on this amount of cash? Any franchise recommendations?

    And the big question, can it be done?
Page 1
    • bris
    • By bris 26th Mar 19, 5:52 PM
    • 8,815 Posts
    • 7,705 Thanks
    • #2
    • 26th Mar 19, 5:52 PM
    • #2
    • 26th Mar 19, 5:52 PM
    £2500 is not buying you any worth while business franchises.

    It's not a lot of money to start any kind of business. You may be able to buy and sell things if you can find a product not done to death on Ebay, but in all honesty I wouldn't give up my day job just yet.

    To grow 2.5k will take a long time and that's is you still have it in the first 3 months. If you can find a niche market you have a chance.
    • Pennywise
    • By Pennywise 26th Mar 19, 6:04 PM
    • 12,048 Posts
    • 23,703 Thanks
    • #3
    • 26th Mar 19, 6:04 PM
    • #3
    • 26th Mar 19, 6:04 PM
    Yes, assuming you're not going to give up your day job, you can certainly use the £2,500 to set up a sideline business which you may be able to grow if you "churn" the profits into developing the business.

    One of my clients started a business with just a few hundred, bought some stock to sell on ebay (they spotted a niche that wasn't saturated), re-invested their sales into more stock, and so on, and then set up their own e-commerce website. After a few years, turnover was over a million, net profit half a million, and they sold it for around a million. All from, if I remember rightly, £300-£500 of initial stock. The thing is, though, that they didn't need to live from the business for the first few years, so could plough back all sales. They also "lived and breathed" the business, so no holidays etc - it was work, all the time, evenings and weekends. They also taught themselves how to create websites and how to do their own SEO etc.

    I also had a client who had a £100k inheritance, set up a business with it and lost the lot!

    So, yes, it's possible, but it's not just about money. You need the time, inclination, aptitude and ability too. Also, need a rock solid business idea - preferably something unique/niche and definitely not something everyone else can do.
    • J B
    • By J B 26th Mar 19, 8:45 PM
    • 3,520 Posts
    • 1,344 Thanks
    J B
    • #4
    • 26th Mar 19, 8:45 PM
    • #4
    • 26th Mar 19, 8:45 PM
    I recently won £5000 at Bingo, split between my partner and I. The plan was to pay £2500 each off of our credit cards..............
    Originally posted by Howll

    How much credit card debt do you have?
    • scaredofdebt
    • By scaredofdebt 27th Mar 19, 11:38 AM
    • 1,386 Posts
    • 684 Thanks
    • #5
    • 27th Mar 19, 11:38 AM
    • #5
    • 27th Mar 19, 11:38 AM
    There's loads of ideas, but if you can come up with something original you could do very well.

    For example, where I used to work there was a lady who sold cup-cakes once a week, I worked in a very large office with 3-4k employees. She was selling 400-500 cup cakes a day at £1-£1.25 each. I had a chat with her and she was making around 70% profit, less £50 that the office owner charged her for the stall. She visited different offices daily so was working a 4 day week (Monday day off) so you can see the amount of money she was earning, a very nice amount.

    Main downside for her was she was up around 4 AM baking the cakes!

    Set up costs for this type of business would be minimal, industrial style catering ie oven would be useful though. You'd probably need certificates such as health and safety etc.
    Make £2018 in 2018 Challenge - Total to date £2,108
    • lincroft1710
    • By lincroft1710 27th Mar 19, 2:05 PM
    • 12,217 Posts
    • 10,787 Thanks
    • #6
    • 27th Mar 19, 2:05 PM
    • #6
    • 27th Mar 19, 2:05 PM
    This thread is very similar to one which was posted some months ago
    • lincroft1710
    • By lincroft1710 27th Mar 19, 3:30 PM
    • 12,217 Posts
    • 10,787 Thanks
    • #7
    • 27th Mar 19, 3:30 PM
    • #7
    • 27th Mar 19, 3:30 PM
    I have £2500 from a Bingo win that's just been cashed and is staring at me from my current account.
    I also have £5700 of credit card debt, which is all on one card and interest free until September 2020.

    I was going to pay it off the card right away, then from my May salary, I had planned to pay off £300 PM onto the card so I can clear it in 12 months (Save for maybe a bit less at christmas time)

    However, as it's interest free, I just had the revelation that I could actually make that money grow over those 12 months. I've looked into an ISA and the amount seems to be negligible, then I thought about Premium Bonds, and although it's not guaranteed, there's always a chance?

    Anything else I could do to potentially make that money grow more and pay the card off quicker?
    Originally posted by Howll
    Which do you want to do? Pay off your debts or possibly lose it in an unsuccessful business?
    • lincroft1710
    • By lincroft1710 27th Mar 19, 3:32 PM
    • 12,217 Posts
    • 10,787 Thanks
    • #8
    • 27th Mar 19, 3:32 PM
    • #8
    • 27th Mar 19, 3:32 PM
    How much credit card debt do you have?
    Originally posted by J B
    £5,700 according to OP's other thread
    • tacpot12
    • By tacpot12 27th Mar 19, 3:58 PM
    • 2,899 Posts
    • 2,622 Thanks
    • #9
    • 27th Mar 19, 3:58 PM
    • #9
    • 27th Mar 19, 3:58 PM
    Paying off your debts and using any surplus to start a business would be more sensible, as your debts will just increase if you aren't earning.

    Realistically no business is going to provide a living wage in the first two months of trading, so you need to be able to live for three months without any income in case you need to start job hunting. So you need to save enough from your job to be able to live for three months without an income and you will need whatever it will cost to setup your business. Very successful business have been started with a few hundred pounds. You only really need insurance, customers, a skill and perhaps a tool or two to start a business.
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always check official information sources before relying on my posts.
    • Percy1983
    • By Percy1983 27th Mar 19, 10:50 PM
    • 4,994 Posts
    • 7,824 Thanks
    Firstly I would pay it off the credit card with the idea of if you need to buy for you business idea then you can use the credit card.

    Do you have a skill, passion or hobbie you could make money doing?

    I actually bought my 4th business for £5000, but it complemented what I was already doing to which I had the knowledge to push that business forward.

    So in short right now all you know is that you don't want to do what you are doing, so the question is what do you want to do?
    Have my first business premises (+4th business) 01/11/2017
    Quit day job to run 3 businesses 08/02/2017
    Started third business 25/06/2016
    Son born 13/09/2015
    Started a second business 03/08/2013
    Officially the owner of my own business since 13/01/2012
    • J B
    • By J B 28th Mar 19, 2:11 PM
    • 3,520 Posts
    • 1,344 Thanks
    J B
    £5,700 according to OP's other thread
    Originally posted by lincroft1710

    That's not very 'business like'.
    • Mistral001
    • By Mistral001 29th Mar 19, 7:58 AM
    • 3,955 Posts
    • 3,033 Thanks
    I would wait until you are in a job you like and then make the decision to start your own business. That way the decision will be for the right reasons.
    • VintageBelle
    • By VintageBelle 2nd Apr 19, 12:20 PM
    • 292 Posts
    • 209 Thanks
    I think paying off debts is much more viable. As someone else has stated you can start a small ebay business with a few hundred pounds so it's something you could do as well as paying off your debts.

    Take your time to research and plan your business before investing money that could be useful elsewhere.

    If you are in a position to save a little extra cash from your job to start a small business it gives you time to plan.
    Last edited by VintageBelle; 02-04-2019 at 12:22 PM.
    • trailingspouse
    • By trailingspouse 13th Apr 19, 8:18 AM
    • 3,783 Posts
    • 7,234 Thanks
    Pay off the debt.
    Most people who run their own business have the idea first, then go looking for the finance. And as others have said, you might not actually need much in the way of finance - we started ours with just a desk, a computer, a cracking idea, 30 years of solid experience in the industry, and 10 years spent getting the right specialist experience.
    Last edited by trailingspouse; 13-04-2019 at 9:23 AM.
    • 00ec25
    • By 00ec25 14th Apr 19, 11:22 AM
    • 8,595 Posts
    • 8,484 Thanks
    by just simply linking to us (pm for more details).
    Originally posted by A to B
    self promotion is not what this forum is for
    • britishboy
    • By britishboy 14th Apr 19, 12:17 PM
    • 2,982 Posts
    • 407 Thanks
    Aside from the debt, following this thread with interest
    • Elise1912
    • By Elise1912 22nd Apr 19, 7:30 PM
    • 53 Posts
    • 86 Thanks
    a) congratulations! b) yes it absolutely can be done, you can start a business with £300! c) read the my wife quit her job blog for ideas on small ecommerce business ideas. totally legit!
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