Podcast Summary
Navigating Challenges in Starting a Property Investment Business at a Young Age: Determined young entrepreneurs face unique hurdles in property investment, including legal compliance, attracting investors, and building credibility. Setting clear goals and persisting despite initial lack of success is crucial.
Starting a business, especially in the property investment industry, comes with unique challenges for entrepreneurs, regardless of age. Louis and Ben, at 24 and 20 years old, are business partners without a business yet, but they're determined to get into deal packaging. They've identified three challenges: legal compliance, finding investors, and building credibility. Their goal is to have a profitable business within a year, focusing on growth and expanding into property development projects. However, they're currently in the learning and research phase and haven't started making a profit. This conversation highlights the importance of addressing challenges head-on, setting clear goals, and persisting despite the lack of initial success. It's essential to understand the industry, build credibility, and establish a network to attract investors and grow the business.
Start a trading business for property investment: Start a profitable business before investing in real estate, skeptical of deal sourcing agent approach, attend business masterclass for insights, check out The Entrepreneurs University for business growth
Some individuals make money by acting as deal sourcing agents, finding off-market properties and selling them to investors for a fee. However, the speaker, who has built a property portfolio through trading businesses, advises starting a trading business, generating profits, and then investing in property. He expresses skepticism towards the deal packaging approach and encourages attending a business masterclass for valuable entrepreneurship insights. The Entrepreneurs University, an online training platform, is also mentioned as a resource for growing businesses.
Exploring Entrepreneurship for Financial Growth: Two instrument technicians consider entrepreneurship for increased income and financial stability, considering deal packaging as an easier route, and are encouraged to try Entrepreneurs University for support.
Starting a business can be a viable path to financial growth, even if you're currently comfortable with your salary. Louis and Ben, two instrument technicians, share this sentiment and are planning to leave their engineering jobs to start their own business and eventually invest in property. While setting up an engineering business is an option, they believe that deal packaging could be an easier route for them. James Inclair, the podcast host, suggests trying his Entrepreneurs University for free to help them get started and grow their business. Overall, the discussion emphasizes the potential of entrepreneurship as a means to increase income and financial stability.
Building a profitable engineering properties business: Selling a £500k profit business could fetch up to £2.5m, structuring as a trading business reduces tax, combining with property investment creates a steady income stream, and a reliable trading business offers a consistent customer base and potential financing.
Building a profitable business in the property sector, such as an engineering properties business, can lead to significant financial gains. If you've built up a business making £500,000 a year profit with 20 engineers, you could potentially sell it for 5 times that amount, around £2.5 million. By structuring this as a trading business, you could pay less tax, approximately £250,000, between you and your partner. The enjoyment of the business is subjective, but having cash on hand is essential for property investment. The most effective way to generate this cash flow is by establishing a successful trading business. The government has provided significant support to trading businesses in recent years, while investors have received less assistance. By combining a trading business with property investment, you can create a steady income stream, with slow pounds from property and fast pounds from the business. This approach allows you to grow your property portfolio more quickly. While some may suggest deal sourcing as an alternative, a reliable trading business provides a consistent customer base, enabling you to employ staff and potentially secure 100% financing from a bank to buy the property that houses your business.
Start trading before investing in property for faster growth: Established trading businesses increase chances of bank loans, tax benefits, and intercompany funding for property investments
Starting a profitable trading business before focusing on property investment is the fastest way to build a substantial property portfolio. Banks are more likely to provide loans to established trading businesses due to their ability to verify profitability and contracts. This approach allows for tax benefits and the ability to use profits from the trading business to fund property investments through intercompany loans. While building a network of investors for joint venture financing is an option, starting a state agency and doing deal sourcing on the side could also be considered, especially if one wants to think bigger and establish a reputable business in the real estate industry. However, it's important to note that both options require hard work and dedication. Ultimately, the key is to prioritize business growth before property investment and to find the right trading business or real estate niche to ensure success.
Starting a profitable trading business requires credibility and learning the basics: To build a successful trading business, learn the fundamentals first, seek advice, and gain credibility through experience and skills.
Starting a profitable trading business requires credibility and learning the basics before expanding. The speaker emphasizes that building a trading business provides valuable skills and knowledge that can be beneficial for future endeavors. He shares his personal experience of starting as a sole trader and gradually building a team and expanding his business. He also mentions that it's essential to learn the fundamentals first, such as budgeting, organizing, and acquiring customers, to gain credibility and experience. He recommends starting with free educational resources and seeking advice from successful individuals in the industry. The speaker also shares the example of Elon Musk, who started with a less ambitious project before pursuing his dream of space tourism. In summary, starting a trading business is not just about the industry but also about learning valuable skills and gaining credibility to succeed in the long run.
Identifying an ultra hungry audience for your business: Find a market with strong demand for your product/service, where customers are loyal and buy regularly for a larger customer base, consistent revenue, and high profit margins. Dedicate, work hard, and adapt to succeed.
Identifying an ultra hungry audience for your business is key to success. This means finding a market with a strong demand for your product or service, where customers are willing to buy regularly and are likely to be loyal for the long term. This approach offers several advantages, including a larger customer base, consistent revenue, and the potential for high profit margins. However, entering such a market requires dedication, hard work, and a strong entrepreneurial spirit. Many businesses fail within the first few years, so it's essential to have a clear vision, a willingness to learn, and the ability to adapt. Starting early in commercial property investment, funded through the profits of your trading business, can also be a valuable long-term strategy. Remember, the best entrepreneurs are not only innovative but also great marketers and relationship builders. Don't underestimate the competition, but believe in your ability to implement your ideas and work harder than others. This mindset, combined with a focus on serving a hungry audience, can lead to a scalable and successful business.
Building a profitable business for property investment: Building a profitable business is a stable and financially advantageous approach to funding property investment, eliminating the risk of relying on trading income and providing tax efficiency through intercompany loans, dividends, and business sales.
Building a profitable business is a more sustainable and tax-efficient way to generate funds for property investment than relying on traditional methods like mortgage fraud or raising finance from private investors. The speaker emphasizes that the best approach is to establish a trading business that generates cash, and then use that cash to invest in property through intercompany loans or dividends. This strategy not only provides financial benefits but also eliminates the risk of relying on a trading business for income. The speaker also mentions that deal packaging may not be a long-term sustainable business due to changing market conditions and government regulations. Furthermore, starting a trading business can be a good stepping stone for those who are engineers or have other skills that can be monetized. The speaker also suggests that the most tax-efficient way to make money in the country is to build a business and sell it, taking advantage of entrepreneurs relief. Overall, the key takeaway is that focusing on building a profitable business is a more stable and financially advantageous approach to funding property investment.
Profitability of Starting an Engineering Business: Starting an engineering business can be profitable, with potential earnings exceeding those of working for a contracting firm. However, it requires careful planning, credibility building, and business management skills.
Starting your own business, even in a regulated industry like engineering, can be more profitable than working for a contracting firm. By doing the calculations, we found that a business making $120 a year per employee while paying them around £40-£50k annually, leaves significant room for individual entrepreneurs to earn more by charging £500 a day. However, creating a contracting firm comes with its own challenges, such as regulations and business management. But, starting small in a local area and expanding gradually can be an effective strategy. Building credibility through awards, social media presence, and personal branding can also help attract clients. Attending events like the James Sinclair Business Masterclass can provide valuable insights and opportunities for growth. While starting a business may not be easy, the potential rewards make it a worthwhile endeavor.
Successful entrepreneurs share insights on property investment and trading businesses: Louis and Ben discuss their experiences in property investment, focusing on trading businesses and self-managing commercial properties, emphasizing the importance of location, and sharing insights at a business masterclass.
Successful entrepreneurs like Louis and Ben believe in putting their money to work as soon as possible, viewing it as a depreciating asset. They prefer investing in businesses, particularly trading ones, and have found success in self-managing the letting of their commercial properties through platforms like Zoopla and local Facebook groups. Location is a crucial factor in property investment. While they occasionally use agents, they generally prefer managing the process in-house. Their experiences and insights will be shared at their business masterclass, offering valuable lessons on property investing and trading businesses. To engage in similar conversations and help others learn, join the business broadcast as a guest. Remember, the questions asked and the shared experiences can greatly benefit listeners. So, keep listening, rate, review, and subscribe to the podcast to help us reach more people and support their business growth.
