What to do with $10,000 ?

I do not have the money yet, but I have someone with cash who might back my online business ventures.

My Background: I work 40 hrs a week in a cubicle at a job I can not stand. I am 23 years old and ready to start my own business. I run about 7-8 sites that make me $100-200/month. I am still small time right now.

Before I could get the money I would fill out the necessary papers to become a business and run all my transactions through the business.

I just want to know what would be the best way to use $10,000? Let's say it had 10% annual interest on the loan.

Would it be best to buy an established website that makes $1,000/month ?

Or would it be best to start a brand new website (probably ecommerce) from scratch. Spend like $4,000 on development and then $6,000 on SEO/Marketing. How would I know what products to try and sell?

What would be safer/smarter? If I bought an established site that made me $1,000/month I could repay the loan in whole in about a year. And then all the $1,000/month for the years after that would be profit.

 

I can't tell what would be the best but I personally would split it half: buy a website which earns $500/month, and ivest another $5000 in your own website.

 

A business plan would be a great start. Since you have a full time job, take your time to make a business plan and let this business plan inspire you to last on your cubicle job a little while longer. Make sure you plan carefully, the dates, requirements and investments. I am sure you are motivated enough to succeed. Good luck buddy!

Zac Louie

 

Well, getting the established website would inevitable mean that the initial stage is done for you but buying over such site, you need to find out how it is generating income because if the site advertises to get income then you probably need to factor that into your cost too. You need to find out all the details because the worst thing that can happen is that the seller withhold information and when you take over the site, you have to handle the bucket of issues.

Of course, starting your own can be a challenge and it may or may not work out. The risk is there but at least you know what goes into it and you have the satisfaction of bringing up a site, your very own baby.

 

Since the 10K isn't yours and you have to pay interest on it too,I would suggest what Michau said.Invest some part in something which is already established and will guarantee a minimum income and invest the rest in your "baby".

This is to ensure that even if all hell breaks loose,you won't be left in a bad shape.I know I am talking in a cautious manner instead of being adventurous,but there you are.

If you are pretty much sure that your baby or dream website will take off in a grand manner and is sure to be a success,then go ahead and invest everything in it.
Ofcourse invest in something you are interested and pretty familiar,to ensure you do not get scammed or something

My 0.02$

 

All good comments. But how can I start a business plan if I don't know what I would do with the money. I kind of like the idea of spliting it in half, except I don't know how much time I can put into starting a web site from scratch because I work all day and can't put as many hours into it.

 

Hey I'd personally look into something you have great interest in, if you don't know what you can do, you need to think what you want to do, pointless opening a business you don't know about. $10,000 can go a long way

 

Business mistake #1 - I didn't create a business or marketing plan. Four years on, I am having to do both, and relook at my business, from bottom to top - wasting hours and money.

You'll regret not having a business plan as it focuses your aims and objections for the business and makes you think about making a well informed - right decision.

 

I'd say it depends on the type of site you are looking for, the competition and the sites available to buy.

If you can build a site about a subject you have a keen interest in, which is as good as your competitors I'd suggest spending the majority of the money on promoting your site through SEO and AdWords.

 

Have a business plan. State your vision and mission statement, have a plan, know your strength weaknesses opportunities threats (SWOT), etc

 

as you have forum and had just 30 reg' user use some $500 and start referral contests and pay members for joining the forum ,go to some forums like moneymakergroup,getpaidforum,talkgold sos you'll get cheap members and your member will increase by 2000 by the end of month then grow like crazy and make your forum huge ,then get one big Basket at home and put google adsense and get golden eggs everyday ,it just need a budget around $300, if you don't get i could help you for that and oh i don't need money for that,

 

My investor did tell me I would have to have a solid business plan. And I will write one up once I figure out what is the best way to disperse the money.

 

If I would do online business with 10,000$ i would find the ideas.
It would need probably 600$ for two VPS for two years.

I would use outsorcing services (Indians), some guys from this forum to aquire links and if I need some software done I would use getafreelancer sites.

I would spend 1K-3K for buying existing sites.

 

I would be very cautious buying a higher priced existing site. Why? Because generally no one really sells a great money maker if there isn't some problem with it. Make sure all the traffic sources are documented for at least a year. Write up a sales contract and have a lawyer look it over. Write in some contingencies that if the owner misrepresented the site you can take legal action.

 

Also a good idea, to have software coded! Advertise and sell, wouldn't take too long for you to make your money back

 

buy a website for a lower price and get the site advertised so it is well known, something that everyone would use. my concept at least.

 

I would say devide half into making new websites and half for advertisement. If you are serious about doing business shoot me a PM...maybe i can do something for you.

 

thanks for the replies again. I'll be contacting some of you.

 

I agree that I woudn't buy overpriced existing sites. There are some cheap themed AdSense powered sites on sale on DigitalPoint. I would buy some which have nice content and look but which don't stand good in SERPS. Some people get tired with site which gets 1-3$ a day or something and they sell it for 200$ or so.

 

I would place it in a long term fund in the bank and earn interest from it monthly