Calling all Entrepreneurs!

pak-one · Dec 21st, 2008, 08:13 PM

In these times of economic uncertainty and repeated job loss/business cutbacks, I wanted to see if there are any entrepreneurs on this forum?

I am considering launching a joint venture with a family member. Since my job is pretty demanding and secure, I am thinking about devoting some time to the venture while continuing full time employment. I might consider switching to the business side if my income is at least 1.5xmy current salary and there is some stability in the cash flow.

In case you're wondering, the venture is in Commercial Real Estate development in the US and UK. The biggest challenge is access to the credit and working capital. How are the entrepreneurs dealing with the economic downturn?

firenze · Dec 21st, 2008, 11:44 PM

What my understanding of current market is wait .. and wait for at least a year let the markets get stable all over the world. Sarey entrepreneurs....k pesey Apple mein doob gey hain ..

navaidishere · Dec 22nd, 2008, 12:26 AM

I disagree with the above post. Waiting for the market to get stable is not where the money is. During an economic downturn, Cash becomes King and there are a great number of opportunities for "Transfer of Wealth" from one group to another. Market balance is disrupted and growth can be phenomenal. The banks that goes burst do have physical assets and infrastructure in place which is bought for pennies. Hence market gain can occur at an exponential rate.

As for your question of "Cash". Your best bet would be a place with heavy flow of cash and vast dollar reserves i.e. middle east. See in Saudi Arabia you can borrow huge sums of money for just 2% of interest and that too isn't compound interest. And if you're in the inner-circles of investors, money can be borrowed for less then 1% for two years.

What you really should be thinking is developing business models, cash flow models and short term revenue streams because at the end of the day you have to give something back to the investors. Also, real estate values are projected to go further down for the next quarter so you have a tad bit of time to put your act together.

pak-one · Dec 22nd, 2008, 09:38 PM

Quote:

Originally Posted by firenze

What my understanding of current market is wait .. and wait for at least a year let the markets get stable all over the world. Sarey entrepreneurs....k pesey Apple mein doob gey hain ..

I think many opportunities are created during market turmoils. It's all about positioning your enterprise to realize these opportunities and create value.

pak-one · Dec 22nd, 2008, 09:48 PM

Quote:

Originally Posted by navaidishere

I disagree with the above post. Waiting for the market to get stable is not where the money is. During an economic downturn, Cash becomes King and there are a great number of opportunities for "Transfer of Wealth" from one group to another. Market balance is disrupted and growth can be phenomenal. The banks that goes burst do have physical assets and infrastructure in place which is bought for pennies. Hence market gain can occur at an exponential rate.

As for your question of "Cash". Your best bet would be a place with heavy flow of cash and vast dollar reserves i.e. middle east. See in Saudi Arabia you can borrow huge sums of money for just 2% of interest and that too isn't compound interest. And if you're in the inner-circles of investors, money can be borrowed for less then 1% for two years.

What you really should be thinking is developing business models, cash flow models and short term revenue streams because at the end of the day you have to give something back to the investors. Also, real estate values are projected to go further down for the next quarter so you have a tad bit of time to put your act together.

Excellent analysis! I think that so much of initial investor interaction is based on many non financial factors: trust, market conditions, and the strength of the network.

I am very interested in what you mentioned about the KSA and possibly the Gulf. Coming from an I-Banking background, my first thought is to create a pitch, with the cashflow models, revenue streams and the like, but I would like to really establish the firm as a solid player : One that is conservative in it's approach yet has the ability to take calculated risks.

What are your thoughts about a JV with a bank? Sure we would be giving up some profits/controls in return for greater access to cash.

I am excited yet afraid at the same time.

sheyn · Dec 22nd, 2008, 09:56 PM

The Real Estate Market in the Middle East....i.e Dubai to be precise has practically crashed and now would be a perfect opportunity to invest in property there if you have a ready cash reserve , however do not expect profits for the next so many years . However the rents have not fallen so a steady income can be expected from these properties.

One particular investment opportunity would be The Palm which is almost complete and prices of villas that had risen to 5 million plus are now down to 1.5 million ! The Palm is gonna be a tourist destination ( already on the map in tourist circles ) and prices will definitely soar so no would be a good time to get a piece of the pie !

PrinceMS · Dec 23rd, 2008, 09:42 PM

^ I personally think worst is still yet to come! Wait ... postpone the venture. Market is not going to jump all of a sudden. It will start recovering slowly.

Cantankerous · Dec 24th, 2008, 09:25 AM

Guys, once your venture gets off the ground, don't forget to hire me as a Research Analyst.

pak-one · Dec 26th, 2008, 03:59 PM

Quote:

Originally Posted by sheyn

The Real Estate Market in the Middle East....i.e Dubai to be precise has practically crashed and now would be a perfect opportunity to invest in property there if you have a ready cash reserve , however do not expect profits for the next so many years . However the rents have not fallen so a steady income can be expected from these properties.

One particular investment opportunity would be The Palm which is almost complete and prices of villas that had risen to 5 million plus are now down to 1.5 million ! The Palm is gonna be a tourist destination ( already on the map in tourist circles ) and prices will definitely soar so no would be a good time to get a piece of the pie !

Thanks for the information but we're limited to the US/UK right now. Any venture, particularly real estate oriented, requires an in-depth knowledge of the local area, trends, and the ability to move quickly. We do not have those capabilities in ME.

pak-one · Dec 26th, 2008, 04:03 PM

Quote:

Originally Posted by Cantankerous

Guys, once your venture gets off the ground, don't forget to hire me as a Research Analyst.

Oh come on bro! Start your own venture! Don't go through life working for the MAN.

sheyn · Dec 26th, 2008, 11:14 PM

Hey Cantankerous don't listen to him....U can always work for the WOMAN !

pak-one · Dec 26th, 2008, 11:51 PM

Quote:

Originally Posted by sheyn

Hey Cantankerous don't listen to him....U can always work for the WOMAN !

Oh snap..I just got served.

Maybe it is better to work for the WOMAN

firenze · Dec 27th, 2008, 04:53 AM

I am also avaiable for the CTO or CFO post...

pak-one · Dec 27th, 2008, 11:26 PM

Quote:

Originally Posted by firenze

I am also avaiable for the CTO or CFO post...

Aim higher! Just being CTO or CFO should not be enough. Aim to run the show.

Mirch · Dec 28th, 2008, 11:55 AM

Quote:

Originally Posted by pak-one

Aim higher! Just being CTO or CFO should not be enough. Aim to run the show.

I am aiming to run my show , how can you help me ? I have a job

but the market conditions are scary .

Cantankerous · Dec 29th, 2008, 12:13 PM

Quote:

Originally Posted by pak-one

Oh come on bro! Start your own venture! Don't go through life working for the MAN.

You think if I had the slightest clue as to how to start up my own venture (or even research analysis) I'd be asking you?

Oh by the way, its a sista here!

pak-one · Dec 29th, 2008, 04:45 PM

Quote:

Originally Posted by Mirch

I am aiming to run my show , how can you help me ? I have a job

but the market conditions are scary .

We can talk about how you are planning on implementing your ideas into a viable venture. This means lots and lots of research and a sound business plan with many contingencies.

As I mentioned earlier, I am not planning on leaving my current job until I can be sure of a sustainable monthly cash flow. My job is pretty stable (if not busy) but I can't see myself doing same thing day in and out. Also, it helps hat I am single and don't have any major financial commitments, which means that I am relatively financially agile.

Have you considered partnering with others? You can kick in some equity and help out with the launch as your time permits.

pak-one · Dec 29th, 2008, 04:50 PM

Quote:

Originally Posted by Cantankerous

You think if I had the slightest clue as to how to start up my own venture (or even research analysis) I'd be asking you?

Oh by the way, its a sista here!

Haha ok. I think you're really interested in starting a venture you should:

1. Pick something that you enjoy doing.
2. Analyze the market (Online, SBA, or even the Biz Dev. Center at a local University)
3. Talk with folks that are already in that field.

These are some preliminary ideas. Look for your market niche and see whether you can run cash flow and valuation analyses.

Sorry about that sis, just thought had a masculine nick