I can't run a multinational...but maybe I can create one.

NeptunesMoon

just looking for some advice. I believe Ive a lot of good ideas for new businesses and have set up a successful business and believe i can set up more. it doesn't really matter what the business is, but its the setting up and creating something new that i like. the business i set up already is at a stage where it should be taken to the next level, but i dont think im the person to do that. ideally, id like to set up a load of businesses and somehow pass them on but yet keep a stake in them. ideal situation would be to set up a number of successful businesses and be able to take months off at a time without worrying about the ins and outs of each business, but still earn from the hard work i put into them at the start. i could keep going on setting up new businessses and passing them on to people. im guessing a 51% stake isn't possible, unless I somehow have a 51% stake but say only 5% of earnings. it would be nice to have a strong say on things but without the pressure of being responsible if whoever i pass it onto f**ks it up.

any advice on what I could do, where i could go to find responsible, suitable people to pass the business on to and how i can benefit most from my creations, earning a continous wage with little stress, while still keeping a part of what I made? cheers

kilburn

I cant see anybody taking on a business and being the smaller partner. You would have to go min 50-50 at 51% you will be the one left in the **** if as you say it goes wrong

earpiece

OP, Have you a bag of magic beans for funding these start up businesses?

NeptunesMoon

why would you say that? i built the first business from the ground up and its now profitable and believe this is where my skill is, creating something from nothing and making it profitable, starting small and getting it to a stage where its reputation etc carry it forward and its ready for bigger expansion, which i dont feel i can help much with. so id be hoping to keep a stake in what i create, use small investments to kickstart newer businesses, sell them on and keep going like this. sounds like your mocking me with your magic bean question

sandin

basically you get bored very easily and want to start on the next project. Now't wrong with that - its a sort of business incubation business you want to run.

Bear in mind, even the biggest and best companies relinquish control and founders usually keep a very small shareholding.

The value on any business will in reality be based on current earnings, so a buyer will only pay current market vlaue and rarely pay for future market vlaue unless you show very strong potential.

If I were looking at your model, I'd be inclined to try and get as much as possible for the business when I sell it and keep 20% or less of the equity.

earpiece

NeptunesMoon wrote: »

why would you say that? i built the first business from the ground up and its now profitable and believe this is where my skill is, creating something from nothing and making it profitable, starting small and getting it to a stage where its reputation etc carry it forward and its ready for bigger expansion, which i dont feel i can help much with. so id be hoping to keep a stake in what i create, use small investments to kickstart newer businesses, sell them on and keep going like this. sounds like your mocking me with your magic bean question

No, no mockery.... I'm trying to get a business going at the moment and it needs money for stock, advertising etc., but the banks aren't lending, so my point is, no money = no business.
I have submitted my business proposal to 3 banks, I have had 1 refusal and 2 pending. To date, NONE of the banks have questioned my cash flow projections, my marketing strategy or any other aspect of the business.
This is why I wonder about magic beans?

TheCostumeShop.ie: Ronan

Read Tim Ferris the four hour work week, it's right up your alley.

In many ways I'm slightly similar to what you want to do. I've started 10 businesses in the last 5 years and I'm currently writing this while sitting in a Roykan in a remote part of Japan.

However, it's not easy and there is absolutely no way you can legally be a director of a company with a 26% plus stake holding and not "worry" about it, as your liable for everything that goes on. You need to be 100% in control and totally aware at all times. Saying that, if you put in the right structure and hire reliable CEO's, COO's, Managers and Staff it is possible. Obviously the idea's need to be very solid and you need to be adding a lot of sustainable value. There really is no short cut and while it's nice to be in a position where i will spend one day my Irish office Ireland in the next month (I like traveling), it's also part of the package that sometimes you need to pull all nighters a few nights in a row and work your ass off when it needs to be done.

So yes it's uncommon but it can be done, my advice though it to focus on building something first and worry about pulling back later. Design a business that creates enough value and profits that you can afford the type of staff you require to free up your time for new ventures or mini retirements throughout your life rather than wait till your too old to enjoy retirement.

Just remember....

NeptunesMoon

thanks a lot for that! so if i was to sell business on, it would have to be a limited company? its currently a sole trader style, but still successful would each business i set up with the intention of selling on, be better off set up as a company from the start you think?

dbran

Hi

I think it would make sense for them to be set up as limited companies from the start. They would be easier to sell on or vary the percentage of ownership by selling a specific amount of shares. If the worst comes to the worst and they fail you will have a degree of asset protection.

Regards

dbran

NeptunesMoon

thanks for the continued advice. what do you reckon might be a fair % to hold onto on a business that takes in maybe 80K turnover a year?

Big Mouth

NeptunesMoon wrote: »

thanks for the continued advice. what do you reckon might be a fair % to hold onto on a business that takes in maybe 80K turnover a year?

80k a year turnover :rolleyes:

I'd say thats a one man job there in fairness!!