Should I invest in my friend's business

Life is risk. If you have to take a loan out, don't. If you have money saved up that you were going to use for a materialistic venture, then do so definitely. I'm worried about them keeping the profits. They should be bootstrapping (putting all the money into the business, "feeding" it so it grows) the business.

They defo need to start advertising and get a website. Like seriously wtf. Damn if I had the skills I would offer to do so fuck I missed an opportunity. Yea if you are going to invest in the business, make sure they reinvest all profits into the business. They could refuse but you could reinvest your portion of the profits and therefore gain a bigger share in the company. This is incredibly important because the fast it grows, the faster you can start outsourcing and the more free time you get. If I were you I would do it since it looks like there is a market for it. Idk about social presence since for me personally, I think it's tacky. But I guess all the stupid fucks with money to waste use FB.

I can see instagram working since you could post your cars. Defo hire a pro photographer to make your cars look better than they already are. And get a valet to wash your car to make it sparkling.

>>1650758
Disclaimer: I own no businesses just my 2 cents

>>1650758
Thanks for the input!

I'm sure they are putting some of their profits back into the company, I don't know how much though.

I'm thinking of joining next year though when I start working. I have no savings and will be coming out college. I'll also be buying a car too. I'll be making 50k starting. Still worth to invest some if the money I get per month to finance another car someone is renting for a possible bigger return?

>>1650753
I've heard these businesses often run into issues with insurance. I would make sure that end of the business is rock solid before I would consider it.

>>1650775
So what this business does is have there own insurance (which is cheap). But when drivers rent it and drive it, the insurance is on and up to the renter.

>>1650753
You need to provide more detail.

Where is this business located?
How did they acquire a 2017 GTR?
They're renting the car, and then sub-renting it to someone else?
'rented out from a guy from dubai' - what does this even mean, please clarify.

Fuck, none of this is clear.

>>1650768
Idk man. Buying a car is a huge liability. If there is no other option (public transport or if inconvenient) then buy a cheap 3k car like a honda civic. Reliable to.

Running a business. Especially when starting out. You need to live frugally. Don't sacrifice health or education but live as cheap as fucking possible. All your excess money should be going to the company. At least 50% for the first couple of months. Make sure you all this is contracted and lawyered and shit. They have an accountant right? The more value you could give to the business (building their website, marketing etc) the less money spent on hiring people and the more in investing in new cars and advertising.

The company needs to hire the shit out of this, pay youtubers and shit. And honestly you shouldn't be profiting from the company until at least a year because the company wont be making profit. You have accountants, marketers, programmers to pay. Startups fail because they don't adequately research the market.

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look up rob ferretti/superspeedersrob on youtube. he runs a similar kind of business, and has a few vids that drop small tidbits on how he has grown his business and problems he has run into.. there are too many to go through so you'll have to go digging

though, one that pops into my head is this one:
https://www.youtube.com/watch?v=P1sTBI1D2Z4

he goes into a bit of detail of his thought process in analyzing a las vegas exotic car rental company. most of his videos are about cars specifically, so look for the ones like 'how i make money' or garage updates for a bit more information. it will at least give you a sense of the hurdles that will arise and the disposition you should take when thinking about investing in your friend's business, as well as giving you a chance to assess whether or not you think your friend will be a good fit to run the business


on a side note, are you in the GTA OP?

>>1650792
Thanks for the tips and yea I'm from the GTA

>>1650753

I wouldn't do it. What level of influence do you get over the business for the investment? Do you know anything about the industry and do you trust your friends enough to be able to make balanced decisions while considering your input relative to your contribution? Will you be able to protect your investment if they make a bad decision without your involvement? Do you have any kind of credible insight into the profits in order to make sure you are getting your fair share and aren't secretly being scammed for 50% of what you should be getting? I'd be very careful. They can make a lot of money off of you if they screw you over.

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I'm no expert in this field, but that's pretty fucking illegal. You can't rent out a car that you're renting. They're not that fucking stupid to allow you to do that. Huge risk right there. A bit ago someone got in serious trouble for doing this. They'd rent cars and then they'd rent them out to people under the disguise of being a "legit" dealership. For example, they'd rent the car for a day at $100 and then instead of using it they'd rent it to someone on a waiting list for $200 a day. $100 covers the initial fee and $100 is the pure profit. They're about to get butt fucked by a judge. You want to get butt fucked OP? Are you of the homosexual variety? Nothing wrong with that, but prepare to be fucked.

There's a reason they're asking for money. This whole thing seems suspicious to me.

It's a stupid fucking business anyways. You're not gonna profit as much as you think. There are way better options out there. Stay out of it. Trust me... They don't even have a foundation yet. Now if the vehicle was owned and you just rented it out to people instead of letting it sit there then sure, I'd get it. That's smart, but we're not talking about that and why would he need anyone for that?

Two... TWO PEOPLE... Business partners... Financing one vehicle that starts at around $100,000... To rent it out... TWO PEOPLE... And they need ANOTHER ONE like DJ Khaled. The fuck... Stay away. How can you not afford $100,000 when you're getting into that business. Also shows me that they probably don't know what the fuck they're doing and they're probably EXTREMELY bad at money management. Such a stupid business. They would have been better off opening a shop together and flipping BMW, Audi, or VW cars. I know a person that easily makes $20,000 from that a month. Idiots.

Find better people to be around. Their stupidity will corrupt your innocence.

>>1650803
you're very welcome. weird, I had a feeling for some reason..

If your friend is looking for more investors, I would be interested, maybe even in working with the business.. i dont have much starting capital, though i have been working in auto finance in the GTA for the last 2.5 years, and i know at the very least i could go through friends and colleagues to find business opportunities. shoot me an email if you would like to discuss further

[email protected]

>>1650785
Interesting.

Have you heard of turo?


I would love to get a quasi-exotic to play with on the off days.

>>1650822
Sent you an email

>>1650827
Yea, I have. Why?

>>1650753

Why does your friend need you?

Here's a few tips about putting money into a business:
> Is it a rock solid business with a person running it who is experienced?
> Are you okay with losing your money if the business fails
> Is your investment worth it? How much do you stand to gain?

>>1650753
My advice?

Don't use a GTR. Your entire client base will be raging homosexuals.