What is the most ideal Business to put up if you have P20M and up Funds?

[kit_cebu]

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ipanghatag na bro... sugo ni lord... that will multiply...

i'll be the first one in line....

[gdd]

It's really worth to hear some brilliant opinion from some good istoryans out here. Since this thread have come up beyond what I am trying to source out, please allow me to solicit more good opinion. My friend is really persistent to come up with a business despite of the present worldwide economic situation. Please take a look what triggered this worldwide economic crisis, and also look back what had happened in 1997 Asean economic crisis, how we survived? How many years we and other Asean countries were able to stabilized back the economy? Many had been almost drown by then especially those individual and businesses that have dollar loans, since peso to dollar rate change unfavorably, from 26.40 to 42.50 in a matter of 6 months if I'm not mistaken. Summarily most businesses incurred tremendous financial losses during that time, however, our company a bank, were able to increase its profitability by 350% compared to non-crisis period. Just a thought of what had have the company did strategically?

Back to the thread, kindly suggest the most relevant and ideal business for my friend to put up with his P20M cash funds. My personal opinion is, by the last quarter of this year 2009, world economy will start to shake upward giving some confidence to consumers which is the key towards recovery.

[gdd]

When putting up a business, be it a franchise, start-up business, real-estate business, one thing you have to remember is that you need to be ready for the worst. Don't just anticipate for the best. For example, you planned on putting up a business, then upon implementation it required you to put in more capital. If you are not ready to face that scenario, I don't think putting up a business is in your best interest. For real estate business, I may not be a guru in this field, but there's one thing I know for sure. You should be ready for the scenario that you're money will be sitting for quite some time. If you're plan is to use up the income immediately, then you may be putting yourself at risk. At risk of loosing more money allowing the way.

Remember, that as an investment, it means that it's an extra income that you can afford to loose. Money that you can afford to work for quite some time before you can get passive income from them. In order for you to be successful in any investment, make sure you did due diligence in checking the pros and cons of it. So that if something goes wrong, it's something that you've prepared yourself for. Dili nga matagbaw ka ug blame ug laing taw for the problem. You made the decision, you take 100% responsibility for whatever happens. Just my 2 cents.

It's basic, don't go into business you're not familiar with, or you don't have the capability to handle or run it by yourself. You may hire a guru or an expert or an experience person for that specific line of business, but its not a guarantee of success. Be responsible and accountable of whatever type of business you want to get in...Its the essence of a good businessman. Hence, me suggesting real estate business, means... don't wait for years till that property appreciate its value and sell for profit, it may take years. Let that property earn in some ways to compliment its projected profit yearly upon purchase or acquisition. hope this make sense.

[vin-saint]

It's basic, don't go into business you're not familiar with, or you don't have the capability to handle or run it by yourself. You may hire a guru or an expert or an experience person for that specific line of business, but its not a guarantee of success. Be responsible and accountable of whatever type of business you want to get in...Its the essence of a good businessman. Hence, me suggesting real estate business, means... don't wait for years till that property appreciate its value and sell for profit, it may take years. Let that property earn in some ways to compliment its projected profit yearly upon purchase or acquisition. hope this make sense.

Hey this guy is right! Business is like going to the casino except you control most of it, the steps you take, the decisions you make affects the outcome. If your friend got his 20M as a prize/"mana"/share then the best thing to do is put it in money market, scatter it, TD, UITF, BOnds, MF and etc - low risk / high risks deposits. Then from there live off from the interest, and learn ropes of the business world and maybe in 2 or 3 years time he / she could answer the thread question.

[honey2723]

Hey this guy is right! Business is like going to the casino except you control most of it, the steps you take, the decisions you make affects the outcome. If your friend got his 20M as a prize/"mana"/share then the best thing to do is put it in money market, scatter it, TD, UITF, BOnds, MF and etc - low risk / high risks deposits. Then from there live off from the interest, and learn ropes of the business world and maybe in 2 or 3 years time he / she could answer the thread question.

AMEN!

By the way, to TS, unsa may interests sa imong friend?? Maybe from there, we could pinpoint what would be the best options for your friend... If generic ra nga suggestion, mas dugay matubag ang question. As a finance consultant myself, it's much easier to hone in on what's best for a person based on his interests, wants, goals, etc. If your friend can answer these things, then it'll be a lot easier to make a plan for him...

[MeMing]

if imong ipa-time deposit noh, alkansi na imong P20M. kay it will be loosing it's value the whole time it's in time deposit... it may be intact as P20M but ang worth niya kay gi-kaon na sa inflation rate nga (ave) 7%. Ang interest gihatag sa imo sa banko kay mga 3% ra... that means, you are loosing around 4% of the value of your money yearly. NEVER put your money in time deposits if imong target kay ipatubo siya... ikaw ray alkansi... ang banko ray nadato...

OT : brod pogy_uy, i don't mean no disrespect, but maybe you could use some finance education. kung ganahan ka madatu, i can help you out...

I'm not sure what kind of "time deposit" you are referring to here however, there are certain time deposits offered by a few banks (but i doubt this is still available lately given the global condition we are in - BPI had this at around the year 2000) that doubles your money in 5 years. That's right, your 20M could be 40 million in 5 years tax free since a 5 year term on an investment is already considered long term and is therefore tax free.

So, if I had that money, I should make the "double your money" scheme securely offered by reliable banks as the threshold for my ROI. If I'm going to go into a full blown business and I won't be doubling my investment in a span of 5 years, why bother face the headache of running a business? I'd rather leave it to the bank and with no hassle, it's going to be twice the amount in 5 years.

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On another note, IMHO, franchising is for those who lack imagination. And if you want to be an entrepreneur, the most important thing you need is IMAGINATION. Regardless if you have the funds as long as you have the imagination, you will still have a chance rather than the other way around.

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I hope naa sad ko natabang... diri lang sa kay wala na oras....

good luck!

[honey2723]

I'm not sure what kind of "time deposit" you are referring to here however, there are certain time deposits offered by a few banks (but i doubt this is still available lately given the global condition we are in - BPI had this at around the year 2000) that doubles your money in 5 years. That's right, your 20M could be 40 million in 5 years tax free since a 5 year term on an investment is already considered long term and is therefore tax free.

So, if I had that money, I should make the "double your money" scheme securely offered by reliable banks as the threshold for my ROI. If I'm going to go into a full blown business and I won't be doubling my investment in a span of 5 years, why bother face the headache of running a business? I'd rather leave it to the bank and with no hassle, it's going to be twice the amount in 5 years.

The time deposit rate that I mentioned in the post were the rates I found as of late last year from BDO to BPI to Unionbank to Metrobank to PNB, just to name a few. If the double-your-money scheme is to your appealing to your risk appetite, then good for you... This type of scheme can not last for a long time coz this will be a stretch for banks.

Remember, this is how Legacy and other rural banks started with their investment plans. And I guess you already know that the bread and butter of banks come from loans. If a lot of people invest in the double-your-money scheme, the bank has to make sure that the money coming in will be invested in other vehicles that will give the amount that they promised their investors at the same time still bring income for them (the banks). When entering into loans, the banks have assigned a particular percentage considered as write-offs. These write-offs are considered as the number of people defaulting their payment for their loans, or people who decide not to pay-up their outstanding loans. Only a percentage of write-offs is acceptable for banks. If the write-off percentage goes higher than the expected, the bank will be in danger of not being able to pay-up the promised "double-your-money". And that my friend will put your money at risk as an investor. Even if you tell me that the PDIC is their to secure your deposits, do you really want to go thru all that hassle??

And word of advice, don't put all your eggs in one basket. That means, if you decide to put ALL your P20M in a double-your-money scheme, just remember the trade-off for high-return investments in such short time, the risk of loosing everything is very transparent. Instead of putting everything in the double-your-money scheme, you can invest a percentage of it there and the other percentage in other investment vehicles. At the end of 5 years, you can compare which particular investment worked for you best. And if something goes wrong with one investment, at least you still have other investments to look forward to. Just my 2 cents...

[MeMing]

@honey

If you are a businessman, doubling your money in 5 years is not a SHORT time. There are many businesses that can double your money in a year or 2 however, you have to get your hands dirty to be able to do this unlike the double-your-money opportunity that some MAJOR banks offer FIRST to their PREFERRED CLIENTS.

You are quite right about one thing, this has a limit - in terms of amount and in timing. I even doubt a major bank is going to offer this at the current situation but with 20M, ANYONE WILL LISTEN TO YOUR CONCERN. So, bring it up with any major PHILIPPINE based banks and you never know.

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Also, just in case the owner of 20M do not have the right mind and attitude to get down and dirty with a business or an investment - pang empleyado ra so to speak - then he/she is better off investing in further studies at a first world country that also comes with a job opportunity. Say for example Canada's "coop" or "co-op" educational system wherein a student can study at least 6 months and work up to 2 years afterwards (depending on which province - kung adto ka sa bugnaw kaayo ug walay tao nga mga lugar, 2 years pwedi)...

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anyway, 20M is a lot of money and with the right imagination OR RESEARCH lang, it can easily be put to work for the owner....

[VENUS26]

Patukod ug apartments & motel (ofering short time)...hit man ni kron negosyoha...

[MeMing]

Patukod ug apartments & motel (ofering short time)...hit man ni kron negosyoha...

not when more people are going to lose their jobs...