Duncan Bannatyne's, 3 steps to become a multi millionaire

nino1

Duncan Bannatyne of Dragons Den fame (UK) wrote a book called Anyone Can do it where he claims anyone can do what he did to become a millionaire.
Quick summary. (simplified)
He brought an ice cream van for £450. Built up that business and sold it for £28,000.
Used this money and got a 70% mortgage to build a nursing home which he also helped finance with several credits cards, sold car etc.
Used he success here to build chain of health centres and became a millionaire.
He done this in a time where credit was as difficult to come by as it is now.
My question are 1) do you think this is as easy as he claims?
2) why would it/wouldn't it work in Ireland today?

blahblah06

We don't have the weather for an ice cream van? Sorry couldn't resist

nino1

blahblah06 wrote: »

We don't have the weather for an ice cream van? Sorry couldn't resist

He set up his ice-cream van business in Scotland. Hardly a tropical climate!!

sharkman

blahblah06 wrote: »

We don't have the weather for an ice cream van? Sorry couldn't resist

I've heard that Ice Cream Vans make more money on cold wet days than any other day .

touts

nino1 wrote: »

Duncan Bannatyne of Dragons Den fame (UK) wrote a book called Anyone Can do it where he claims anyone can do what he did to become a millionaire.
Quick summary. (simplified)
He brought an ice cream van for £450. Built up that business and sold it for £28,000.
Used this money and got a 70% mortgage to build a nursing home which he also helped finance with several credits cards, sold car etc.
Used he success here to build chain of health centres and became a millionaire.
He done this in a time where credit was as difficult to come by as it is now.
My question are 1) do you think this is as easy as he claims?
2) why would it/wouldn't it work in Ireland today?

That was back in the good old days.
Today:
The previous owner will demand €45,000 for the Ice Cream van & details of his route.
The FSA will inspect you every few weeks demanding that you upgrade to their latest set of recommended Ice cream making equipment.
The HSE will do spot checks demanding that you upgrade to their latest method of daily deep cleaning of the van.
The HSE/FSA/Environmental agency will also demand that any staff (say your teenage son) has been on their expensive training courses in order to hand out choc ices.
IRMA will demand that you pay them for the right to play music.
The CRO will charge you to register as a company and file annual returns.
The local councils will demand casual trading permits everywhere you set up.
The local litter warden will chase you for litter fines.
Local sports/events organisers will demand a cut to have you set up near them.
Repak will demand you pay them for a licence to dump any recyclable material.
Your local waste and recycling company will start to charge you by the gram.
The insurance companies will demand you switch your home insurance to a more expensive business insurance for parking the van outside at night.
The insurance companies will also demand public liability insurance.
Local scumbags/students will be drawn to the van parked ourside your house on their way back from the pub and you will end up paying for ongoing vandalism which your expensive insurance won't cover.
The local council will switch your base (e.g. your home) over to a business classification and charge you on rates and high water charges.
The bank will impose a dazzling array of business charges just to handle the cash. God help you if you get a loan from them.
The local accountant and tax advisors will circle around you for the chance to pick through the bones of your business and charge you a fortune to tell you you made a loss.
The government will crucify you for tax while immediately cutting you off from all access to social welfare if things go wrong.
The local drug addicts will attack you for the money their little brother just gave you for a loop the loop.

And that's just what I can think of. If Duncan was starting off today in 50 years time he would be sitting on an armchair in his bedsit scratching himself wondering why he bothered to try and start a business.

bigpoppa

now where are the reasons to actually do it? OP I have my own company and there are no end of people who are negative and will shoot you down just go for it

Hanley

On the nursing homes, he was pretty clear that it was essentially "guaranteed cash" from the government at the time. Unless a similar scheme is offered by the Irish government you're not really comparing like with like.

Very straight talking, no nonsense inspiring book tho.

prospect

The 3 things you need are:

A Plan
Energy
Belief

Nuttzz

prospect wrote: »

The 3 things you need are:

A Plan
Energy
Belief

You also need Luck.

who what when

prospect wrote: »

The 3 things you need are:

A really really good Plan
Bucket loads of Energy
Unlimited self-Belief that borders on denial

FYP

maddragon

I became a millionaire yesterday. I took 569euro and converted it to 1000000 Burundian Franc.

antoswords

He left out another step.

Become his ex-wife.

prospect

And that clears up where I have been going wrong.

Páid

When asked how to become a millionaire, Richard Branson once said "First become a billionaire, then buy an airline."

rainbowdash

prospect wrote: »

The 3 things you need are:

A Plan
Energy
Belief

I think it is that easy.


You could do something like cut lawns and gardening in the summer and clean chimneys and pizza delivery in the winter, cash all the way and if you want to work say 80 hrs (+20 in promoting, delivering leaflets etc.) a week at say €25/ hr thats €2000 a week, take €500 for costs and for living in a bedsit and you have 75K in a year.


After 2 years you have 150K and you will still get a 50% LTV off a bank so you have €300K, shrewdly purchase a run down premises in a good location and spend your year 3 earnings of €75K renovating it and open a good corner shop / beauticians / pub / deli etc. etc. and you have a cash cow property worth over €400K against a mortgage of €150K

So now you work 80 hrs a week pulling €75K an a profitable business pulling say €50K profit so you have €125K at the end of year 4 along with significant equity to find another larger project to invest in like a larger and shop and repeat this twice to be a millionaire.

The biggest challenge is having the energy to drive it relentlessly for maybe 5 years of your life while giving up everything else.

nino1

Hanley wrote: »

On the nursing homes, he was pretty clear that it was essentially "guaranteed cash" from the government at the time. Unless a similar scheme is offered by the Irish government you're not really comparing like with like.

Very straight talking, no nonsense inspiring book tho.

Yes your right it was and still is highly subsidised by the UK government.

When i ask is it possible in ireland today I mean, the principal in general of progressively buying bigger business' as apposed to those exact three business'.

Having said that I think nursing homes are very good investments still in Ireland.
There are hansome tax breaks involved in investing in them, they are much cheaper to build now (post boom), there are very few of them that aren't full, they are partly subsidised by the state (fair deal scheme) and are still very expensive per bed.
A 60 bed nursing home at €1000 per bed per week would have an annual turnover of nearly €3,000,000.
Obviously there would be plenty of headaches but the premise of the investment is good imo.

MrMatisse

rainbowdash wrote: »

I think it is that easy.


You could do something like cut lawns and gardening in the summer and clean chimneys and pizza delivery in the winter, cash all the way and if you want to work say 80 hrs (+20 in promoting, delivering leaflets etc.) a week at say €25/ hr thats €2000 a week, take €500 for costs and for living in a bedsit and you have 75K in a year.


After 2 years you have 150K and you will still get a 50% LTV off a bank so you have €300K, shrewdly purchase a run down premises in a good location and spend your year 3 earnings of €75K renovating it and open a good corner shop / beauticians / pub / deli etc. etc. and you have a cash cow property worth over €400K against a mortgage of €150K

So now you work 80 hrs a week pulling €75K an a profitable business pulling say €50K profit so you have €125K at the end of year 4 along with significant equity to find another larger project to invest in like a larger and shop and repeat this twice to be a millionaire.

The biggest challenge is having the energy to drive it relentlessly for maybe 5 years of your life while giving up everything else.

Just one small thing........

nino1

rainbowdash wrote: »

I think it is that easy.


You could do something like cut lawns and gardening in the summer and clean chimneys and pizza delivery in the winter, cash all the way and if you want to work say 80 hrs (+20 in promoting, delivering leaflets etc.) a week at say €25/ hr thats €2000 a week, take €500 for costs and for living in a bedsit and you have 75K in a year.


After 2 years you have 150K and you will still get a 50% LTV off a bank so you have €300K, shrewdly purchase a run down premises in a good location and spend your year 3 earnings of €75K renovating it and open a good corner shop / beauticians / pub / deli etc. etc. and you have a cash cow property worth over €400K against a mortgage of €150K

So now you work 80 hrs a week pulling €75K an a profitable business pulling say €50K profit so you have €125K at the end of year 4 along with significant equity to find another larger project to invest in like a larger and shop and repeat this twice to be a millionaire.

The biggest challenge is having the energy to drive it relentlessly for maybe 5 years of your life while giving up everything else.

I like your positive thinking but I'm not sure about your idea!!
I don't know too many pizza delivery companies that would pay a delivery driver €25/hour, not to mention cash in hand!
Also, why do you think that anyone should pay no tax, while the rest of us do? Don't you use roads, hospitals, police services etc?!!

rainbowdash

nino1 wrote: »

I like your positive thinking but I'm not sure about your idea!!
I don't know too many pizza delivery companies that would pay a delivery driver €25/hour, not to mention cash in hand!
Also, why do you think that anyone should pay no tax, while the rest of us do? Don't you use roads, hospitals, police services etc?!!

Doesn't have to be pizza delivery, there's a lot of things people could try if they are hungry enough! Have the neck for it and willing to work all the hours they can.

I never gave an opinion on whether people should or shouldn't pay tax, just saying if somebody really wanted to be a millionaire then working cash jobs for long hours is one way to accumulate a bit of capital which can then be leveraged onto the next step.

R3al

In Duncans book he also nearly went bust when he was building his first care home, he ran out of money and had to do a deal with the builder to pay after the home was finished and taking in money, so it could easily have been the end of him also he then got out of the care home business in part because the wage cost was spiraling due to agencies.

He may say it is easy for anyone but he has been quite shrewd and has had a bit of luck as well, in todays climate I would say there are very few businesses that become cash cows quickly, just about all businesses take a lot of hard work. long hours, a good idea and a bit of luck to succeed

Tangled

Eh, there are "stories" about other sales from the ice cream vans that may have supplemented his income...

rolion

I'll add that today,beside to all above said and with a good network of contacts ,your chances of getting OK are guaranteed !

You can have money but no contacts,therefore poor decisions !
You can have no money but with contacts you can make money !

Also,having money,you can afford to be "creative" to have time at disposition to dedicate in developing yourself or your business !

Money won’t make you happy, but the process to get there just might !!!
Success to all of us !

Jorah

Duncan Bannatyne didn't even have a bank account until he turned 30. He spent his 20's working in small shops whilst travelling. Pretty remarkable. One of the best rags to riches stories I have ever seen and highly recommend his book.

holidays365

rainbowdash wrote: »

I think it is that easy.


You could do something like cut lawns and gardening in the summer and clean chimneys and pizza delivery in the winter, cash all the way and if you want to work say 80 hrs (+20 in promoting, delivering leaflets etc.) a week at say €25/ hr thats €2000 a week, take €500 for costs and for living in a bedsit and you have 75K in a year.


After 2 years you have 150K and you will still get a 50% LTV off a bank so you have €300K, shrewdly purchase a run down premises in a good location and spend your year 3 earnings of €75K renovating it and open a good corner shop / beauticians / pub / deli etc. etc. and you have a cash cow property worth over €400K against a mortgage of €150K


So now you work 80 hrs a week pulling €75K an a profitable business pulling say €50K profit so you have €125K at the end of year 4 along with significant equity to find another larger project to invest in like a larger and shop and repeat this twice to be a millionaire.

The biggest challenge is having the energy to drive it relentlessly for maybe 5 years of your life while giving up everything else.

not bad , revenue may want to know where the cash came from! and they would be wanting 30-40 % cut

TheCostumeShop.ie: Ronan

touts wrote: »

If Duncan was starting off today in 50 years time he would be sitting on an armchair in his bedsit scratching himself wondering why he bothered to try and start a business.

That's a bit harsh, being an entrepreneur is a state of mind, seeing opportunity and going for it. There has never been as much opportunity to start a businesses as there is today and more people of our generation will be self made millionaires than his.

I think if Duncan was starting off today it wouldn't have taken him nearly as long to amass his fortune.

Some people here are totally missing the point of his whole book! Or at least when i read it some years ago here's how i would have summarised it:

First look for affordable learning opportunities. Start a very small business where the downside is very low (price of a van / ice cream might go out of date), do this to build up experience that will stand to you in the future. When you have build up some experience, assets and credibility, flip the business or move on to bigger or better opportunities.

What he is most definitely not saying is copy my steps exactly, he only started in the nursing home business because he was open to opportunities for a new business, had some cash, there was a huge oncoming demand and massive subsidies. These are no longer the situation but there is different opportunities out there.

Chet Zar

TheCostumeShop.ie: Ronan wrote: »

That's a bit harsh, being an entrepreneur is a state of mind, seeing opportunity and going for it. There has never been as much opportunity to start a businesses as there is today and more people of our generation will be self made millionaires than his.

I think if Duncan was starting off today it wouldn't have taken him nearly as long to amass his fortune.

Some people here are totally missing the point of his whole book! Or at least when i read it some years ago here's how i would have summarised it:

First look for affordable learning opportunities. Start a very small business where the downside is very low (price of a van / ice cream might go out of date), do this to build up experience that will stand to you in the future. When you have build up some experience, assets and credibility, flip the business or move on to bigger or better opportunities.

What he is most definitely not saying is copy my steps exactly, he only started in the nursing home business because he was open to opportunities for a new business, had some cash, there was a huge oncoming demand and massive subsidies. These are no longer the situation but there is different opportunities out there.

All spot on...entrepreneurship isn't a job or a career choice - it's fundamentally a way of thinking and looking at the world.

betonit

Chet Zar wrote: »

fundamentally a way of thinking and looking at the world.

and doing something about it

Chet Zar

betonit wrote: »

and doing something about it

Well yes

A lad who managed a clothes shop in a shopping centre where I worked in a shop tried a similar strategy years back in the UK. He was a fitter by trade and worked shifts, he drove a cab when he was off. Bought a corner shop, worked long and hard hours for a few years. Sold the shop and borrowed some more to finance a nursing home project, had it budgeted fairly finely and then some change in legislation regarding stair lifts and wheel chair access came in so he was up sh1ts creek.

Came over here (Ireland) to work for his wealthy brother in law (rag trade), after a while of working for him and also selling his own stuff at markets he spotted a development opportunity, asked his accountant to get creative with his income to sway a bank towards lending to him, accountant concluded it was a non runner and he couldn't afford it. A year or two later his accountant made decent money by selling on the developed whatever it was that your man was hoping to do.

I met the same lad randomly at a market while I was passing through some town, he was full of more ideas, bouncebackability

Go back 20 or 30 years here and lads made serious cash in hand money driving cabs on the side, manies the pub was financed by it and sold on in the boom later, most of them lads invested the proceeds in bank shares as they were greedy bastads so are back to having sfa now though.