Author Topic: Work for someone and retire early, or start my own business?  (Read 2950 times)

BritishColumbiaStache

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Work for someone and retire early, or start my own business?
« on: January 26, 2016, 10:28:34 PM »
Due to some unfortunate circumstances, I've inherited 620k. I'm 25, Canadian, holding 500k in VFV and 120k in CIBC savings with a 1.7% interest rate (being stupid and trying to time the market). I'm currently making 20/hr, and I'll be guaranteed 30-35/hr within two years time. If I invest according to my retire early plan it'll be (investments x 10years) + 220k(incremental deposits over 10 years)=35yrs old

I'm in the process working out my master plan for starting/owning a business, but I find myself struggling to get up for work. I notice I'm dreaming of living in a van, and just traveling for the rest of my life. I fear if I go that route, I'll be disappointed by how much I didn't accomplish given my circumstances. Is there anyone in their 30s that wish they could retire and are there people in their 40s that wish they took that step in starting a business?

ulrichw

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Re: Work for someone and retire early, or start my own business?
« Reply #1 on: January 26, 2016, 11:22:54 PM »
Sounds like you're in the wrong frame of mind to start a business (or at least to be successful at it).

Growing a business will require a ton of sacrifice on your part, and will be a big risk if you plow your money into it. Don't start if you're already questioning your willingness to work.

Invest your money, use it as a buffer against lean times and as a way to find your calling. Take a year off and live in a van to see what it's like if you really think that's what you want.

620k is not a huge amount to live on for the rest of your life - you'd be best off if you can find a career you're really interested in and just letting your nestegg grow. If you invest wisely, you'll be way ahead of the game when it really becomes time to retire.

Remember, there are a lot of people who really enjoy their work - maybe you can be one of them.

Playing with Fire UK

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Re: Work for someone and retire early, or start my own business?
« Reply #2 on: January 27, 2016, 01:39:58 AM »
Have you taken enough time to heal emotionally after the unfortunate circumstances?

I would advise against trying to make big decisions while you are still raw. Unless work is making you ill or too stressed then keep at it. Maybe your current struggle with getting out of bed now is more to do with your recovery than the work itself? How long have you been feeling like that?

I'm 8 years older than you, I do want to start a business (or non profit) in the future, but I want it to be something that I love rather than something I'm obliged to do (nothing kills a hobby like getting paid for it). For me this means getting to a reasonable level of FIRE first (apologies to the IRP about using RE as a place to start a business from). 

Good luck

arebelspy

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Re: Work for someone and retire early, or start my own business?
« Reply #3 on: January 27, 2016, 05:33:30 AM »
Sorry to hear of your circumstances.

What would make you happier?  What will you regret, or not?

If neither, what is the draw for going on your own rather than the "safer" route?
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
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Axecleaver

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Re: Work for someone and retire early, or start my own business?
« Reply #4 on: January 27, 2016, 09:54:49 PM »
I started my first consulting business in my 20's, made some great money, but never got to hire other employees. I did that for a few years and folded it up after my daughter was born to chase Internet stock options with a great job offer (which didn't work out). I tried again in my 30's after the .com crash. That was a bad time and I failed again. I went to work for a Fortune 500, learned how to manage people, and tried #3 two years ago at 43. This time it's working.

You need to learn some things about your trade before you try it, but if you have experience in the business, and it sounds like you do, then try being an employer. Before you start, write out a business plan. Part of the plan should define what your exit criteria are. In other words, at what point do you realize it's failed and you need to pull the plug? Having defined exit criteria helped me quite a bit on this last try, because I knew if I didn't make it work, this was it, I'd never be able to take another chance at it.

Don't put all of your capital at risk. Set aside some small portion for startup, and invest the rest. Your business plan should define who your customers are, your marketing plan, your sales strategy, your rates, etc. This planning will help you out because a lot of tradesmen just "wing it" and make it up as they go. A good plan will set you apart from those guys. Start small, don't hire 10 guys and then go looking for work. Hire people as your sales expand.


arebelspy

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Re: Work for someone and retire early, or start my own business?
« Reply #5 on: January 28, 2016, 01:15:43 AM »
@arebel
I think I'd regret not pursing the business if I lived a full life, but I think I'd also regret not living life if I came down with cancer by the time I'm 30. Family has a long history of cancer related deaths.

Sounds to me like you should start the business.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Playing with Fire UK

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Re: Work for someone and retire early, or start my own business?
« Reply #6 on: January 28, 2016, 08:08:34 AM »
@arebel
I think I'd regret not pursing the business if I lived a full life, but I think I'd also regret not living life if I came down with cancer by the time I'm 30. Family has a long history of cancer related deaths.

Sounds to me like you should start the business.
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Fishindude

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Re: Work for someone and retire early, or start my own business?
« Reply #7 on: January 28, 2016, 08:19:11 AM »
A whole lot of people would like to have your problems.
Best of luck with whatever you decide.