Forums: Discussions for entrepreneurs and small business.

I appreciate the forum much and have been following with interest over the past six months.  Here`s another "I`m at a crossroads" situation for you.

I have worked in the legal profession for the last fifteen years, primarily as a paralegal, but now as a technology specialist for attorneys (I`m a real geek) in a large, nationally recognized firm.  Recently I`ve become the beneficiary of an estate.  The settlement should come within the next few months and will be around $300g.  I`ve been giving some thought to using this to shift the direction of my life into an area that I might enjoy more.

My options as I see them are:

1. Invest and save (keeping the current profession).
2. Start a business doing something I love doing.
3. Move and start a business.

I`m not a real fan of the area I live in and could use some new surroundings offering a few more things to do in the outdoors.  My loves and passions include nature and the outdoors and photography.  I`ve thought of setting up a website that markets top quality outdoors gear ala REI, Cabellas, Bass Pro, etc., along with furniture that has a distinctive `natural` look.  I`ve also thought of buying into a franchise or business model that would set the stage for my future earnings.  Basically, I could use this money to springboard into a higher bracket if I play my cards right and make clear-headed decisions.

So I guess what I`m looking for are suggestions from the forum in making smart moves.  After working with law for so many years, I am not the gullible type, nor will I use this money frivolously.  I`m not interested in any get rich quick ideas or even MLM, etc.  I am interested in solid opportunity with a proven track record only.  I`m not afraid of risk and definitely have an entrepreneurial spirit, but will reject 99% of what most folks hold out as opportunities these days as merely methods of getting my money.  If I do allocate the funds into a business of some sort, it could become tax sheltered.  The only other way I could accomplish this would be to fund a retirement account.

Any ideas for someone like me? Thanks in advance -

Follow your passion. Sounds like you have a good idea of what you would like to do and how it could benefit you financially and emotionally. My suggestion is to start small and keep the job. Test the waters with smaller investments into scaled down business models you would like to explore. The website idea would be a great way to do this.
As far as financial investments into the markets, I would first max out your retirement options that have tax benefits. My other investment advise would depend heavily on your current holdings. If you have under $50,000, I would suggest putting at least 25% of the 300k money into the market. Investing in the market can produce returns on par with many business investments, returning 15% or better annually.
Good luck on your adventure to financial freedom. Its a great ride!

Having been close to such a situation, albeit without that amount of money, here`s what I came up with.

There`s no doubt that Social Security is bankrupt, and likely will never be able to handle old-age retirement as intended. Additionally, with a growing move toward nationalized healthcare, the national budget will be pretty much bankrupt and who knows where that`ll lead in terms of money.

To that end, storing money in publicly traded investments is increasingly risky. Banks are already in trouble, and might get worse. That leaves tangible (real) things that create and generate wealth (not money---wealth).

In the short term, investments should continue to function so you could store the money temporarily. In the long term, you`d want to convert that investment to something that isn`t contingent on how people feel, but rests and depends on the real world. For example, you might store a portion of the money in gold, not all but a portion.

Many people believe that starting a business requires huge amounts of capital. That may be true for businesses designed to require all that money. But you can choose what business to start. If you start a small business with a basic amount of money---say, somewhere around $5,000---that`ll get you going.

As you build that business, you`re creating wealth. There isn`t any "zero sum economy," money is created to match new products and services. If your business is designed to function in a contracting economy, then you`ll continue to generate wealth in whatever form that would be in the future.

For example, if you sell electricity generators and the infrastructure becomes increasingly unreliable, you`ll likely have more customers as things fall apart. Whether they can pay you money or in barter, you`re still getting what you want in exchange for selling what people need. (Some of these new energy technologies might be a good business for you, with your interests.)

As the economy changes, you then can monitor and adjust what you`re doing to store the remainder of the money. You might put it into another real form, perhaps by owning a house outright.

It`s rational thinking. :-D

One thing you might consider, in the energy field, would be consulting with regard to sustainable energy in homes. I`m not talking about "going green" and that sort of religious ardor; I`m talking about the conservative application of resources to save money.

The increasing efficiencies of solar power, geo-thermal, and so on, are about to the point where people on an individual basis, might be able to save some decent money by adding capabilities or redesigning their homes to take advantages of the technology. Not everyone can do it, nor would everyone want to.

If you were to build a company that provides advice, design, and installation contractors, you might make some good money there. In today`s world, technology seems to be moving faster than most people`s comprehension levels and capabilities. Therefore, people who can act as liasons offer a practical service.

Think about everyone who wanted to buy a computer a few years back. The first question you`d often hear would be directed to someone who understood computers: "What sort of computer do you think I should buy?"

Same with emerging energy systems. People don`t understand how they work, they have lots of questions, and so on. Anyone who can stand in the center and "facilitate" taking advantage of these technologies would stand to succeed, I think.

I live in the heart of tornado alley.  There was a small town of 1500 people that was completely wiped off the map last year by an EF-5 tornado (Greensburg, Kansas).  In addition to 90% of the homes, the town`s infrastructure was destroyed completely.  In deciding to build back, they have opted to do something unique and become the first "green" town on the map.  The city`s buildings are being rebuilt to Leed Platinum certification levels, which is pretty amazing.  They have attracted quite a bit of attention.  In addition, another nearby small town in Missouri is now completely powered by wind energy.

I`ve been following the story of Greensburg carefully, because I have always had an interest in weather.  I have chased storms professionally for many years, documenting around 120 or so tornadoes at this point, and I used to be a stringer for The Weather Channel. 

So Craig, your suggestion has me thinking of a marriage of all of my interests into one perfect company.  My techno-geek aptitude, ability to instruct others about technology, interest in weather, and fascination with renewable energy would all work quite nicely together.  You are right ... renewable energy is not simply a hippie initiative ... it is quickly becoming the most practical choice.  I can see partnerships emerging with not only the technologies but people willing to install and maintain them.  There are already architectural firms in my city that are specializing in the subject, as well.

This was the type of brain fuel that I`ve been looking for the past few weeks.  Definitely some exciting possibilities to consider.  Thanks for chatting about it -

With anything like this, education is one of the first keys.  Once people are given the insight into what it`s about, the money will take care of itself.  To be honest, potential money making ability doesn`t excite me as much as the subject matter itself and the potential it has to benefit people.

Green principles don`t necessarily have to be complex, and can start with some simple ideas that make a difference in a person`s utility bills.  A few small changes in a person`s choices as far as electricity consumption make a big impact ... two degrees of your thermostat, the types of lighting you have in your home, etc.  For those interested in seeing a greater impact, there are a lot of exciting technologies that have really come into their own lately.  Just one example is geothermal energy.  With this, a person can take advantage of the earth`s natural ability to retain heat to cool and heat their home.  Wells are dug in which lines run beneath the home.  As water moves through these lines, it carries heat from the house in the summer and that heat is transferred to the ground below.  This results in cooling the home.  In the winter, the lines carry the heat from below ground and transfer that up to the home, heating it.  Here`s the cool part ... geothermal costs a bit more to install, but pays for itself in about five years.  Plus, it instantly adds substantial resale value to the home.  It`s just smart construction.

That`s the homeowner angle.  But consider a business or company that is paying skyrocketing utility bills.  Many of these are seeking out consultants to come and show them how to put green concepts to work.  And they are willing to invest in the technology to see an improvement in their bottom line. 

The analogy to the way that computers started out is a good one.  For years people didn`t have a clue what they were or how to use one.  Now there isn`t a house without one, and they are standard learning in elementary schools.  We will see dramatic improvements in the application of green technologies in coming years.  I`m tempted to head to Boston to the Greenbuild conference this year.  Lots of tangible applications are demonstrated there each year that show green technologies at work.

:-) Well, just make sure you bookmark this topic so that when you start to build your consulting web site, you`ll have a lot of the content already written.

What name would you have for this company?