The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Free registration at the forum removes this block.

Where to get capital?

UncleIroh

1079252849 kph
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
184%
Oct 20, 2016
116
214
27
Buenos Aires, Argentina
Hey guys! How are you? This is my first post. I want to ask you something that always trouble me. I will give two examples related to my parents. As I said, I live in Argentina so it might be a little bit different to the states.

My dad is a one man ps4 game distribution. He constantly re invests all his capital to buy new games. And he practically sells ALL he can buy with the money within the week. The amount of money he can invest limits him by a lot. For example, if he buys 1000 dollars worth of games he earns 8%, 80 dollars. Lets say his total capital is not that much. So he is reinvesting(I dont know the exact amount) but probably around 50000 dollars. He is growing really slowly as of that 8%, 5% probably goes to cost of living. He tells me that if he could get 100000 dollars of games he would sell them all. The demand is there but he cant with that little money.

Another example is my mom. Who owns a bijouterie business. Its a good business that her father founded many years ago. It consists of one store. She buys the products once a year. And then sells them with large profit gains. But the business is not growing. If she could have the capital to rent/buy new stores in more turistical places, eg: patagonia, or another latin america country. She would probably be growing 1000% faster.


I am aiming towards a web based service to counter this. But in cases like this how can you change it? How do you get more capital?
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.
Last edited:

Jesus

Contributor
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
143%
Oct 11, 2015
30
43
Florida
Hey guys! How are you? This is my first post. I want to ask you something that always trouble me. I will give two examples related to my parents. As I said, I live in Argentina so it might be a little bit different to the states.

My dad is a one man ps4 game distribution. He constantly re invests all his capital to buy new games. And he practically sells ALL he can buy with the money within the week. The amount of money he can invest limits him by a lot. For example, if he buys 1000 dollars worth of games he earns 8%, 80 dollars. Lets say his total capital is not that much. So he is reinvesting(I dont know the exact amount) but probably around 50000 dollars. He is growing really slowly as of that 8%, 5% probably goes to cost of living. He tells me that if he could get 100000 dollars of games he would sell them all. The demand is there but he cant with that little money.

Another example is my mom. Who owns a bijouterie business. Its a good business that her father founded many years ago. It consists of one store. She buys the products once a year. And then sells them with large profit gains. But the business is not growing. If she could have the capital to rent/buy new stores in more turistical places, eg: patagonia, or another latin america country. She would probably be growing 1000% faster.


I am aiming towards a web based service to counter this. But in cases like this how can you change it? How do you get more capital?

Making 8% on your investment seems low. Unless you sell in volume. Maybe trying something with a higher profit margin? As for the capital. If 5% of the 8% goes to cost of living your only reinvesting 3% back which would be $30 a week. At this rate it would take very long to make enough working capital to really get going. Also if the sales are $4,000 a month as suggested I believe that those sales alone are good to at least get you some business funding. Like a business credit card or something. Need to make the business legit though.
 
Last edited:

UncleIroh

1079252849 kph
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
184%
Oct 20, 2016
116
214
27
Buenos Aires, Argentina
Making 8% on your investment seems low. Unless you sell in volume. Maybe trying something with a higher profit margin? As for the capital. If 5% of the 8% goes to cost of living your only reinvesting 3% back which would be $30 a week. At this rate it would take very long to make enough working capital to really get going. Also if the sales are $4,000 a month as suggested I believe that those sales alone are good to at least get you some business funding. Like a business credit card or something. Need to make the business legit though.

Yeah. He sells on volume. The problem here in Argentina is that its almost impossible to have competitive prices if you do the business legit. As the import taxes are too high. Everyone imports and sells "out of the books"
 

100k

Gold Contributor
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
149%
Oct 20, 2012
1,529
2,284
Does he sell online? If he does he could get paypal to front him the money.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

ApparentHorizon

Platinum Contributor
Speedway Pass
User Power
Value/Post Ratio
301%
Apr 1, 2016
942
2,836
Greenville, SC
My dad is a one man ps4 game distribution.

Can he get a loan? He may have to bite the bullet for a bit until it's repaid, but then he'll be doing 8k instead of 80.

Credit card? Open a new one with no interest for X months.

Partner/investor? Give up some equity for cash infusion.

Another example is my mom.

Social media and influencer marketing. Send out free stuff to Pinterest and Instagram faces with 500k-1m followers.

I am aiming towards a web based service to counter this. But in cases like this how can you change it? How do you get more capital?

This is your safest route, although the slowest.

if you get on upwork, etc. You can make some easy cash to put into your parent's biz.
 
Last edited:

ApparentHorizon

Platinum Contributor
Speedway Pass
User Power
Value/Post Ratio
301%
Apr 1, 2016
942
2,836
Greenville, SC
Where do you find an investor?

First thought that comes to mind is other businesses around your area. Who are the big players - maybe some sort of biz organization around your town.

In the US there are actually websites where you can present your idea - do some research to see if they exist in Argentina.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Jon L

Platinum Contributor
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
272%
Aug 22, 2015
1,649
4,489
Bellevue, WA
Can he collect money up front and then buy and deliver the game later? Maybe take deposits?
Also, the faster the inventory turnover, the faster he can make money (shorten the time it takes from ordering the product to selling and delivering it)

What else can he sell as an add-on that has a higher margin. Maybe some hard-to-find accessory? (sell cabinets that keep all your games together, or some unique game controller, or whatever)
 

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top