Buying house OR trader ?

[kingmurtaza196]

Hi

I just got a little upset when I read the thread " What if u get jobless tomorrow " as I guess the company in which I am working in is having financial crises .. If I get jobless tomorrow then I'll start a buying house or a textile trading company..

Which 1 is better ? Buying house OR trader ? I'll be working with Cotton Yarn which is a commodity item. I have got an investment too.

Please advise me.

[Fergal]

kingmurtaza196, hopefully you won't lose your job. I'm sorry but I'm not very familiar with either of those business types, most probably they are called something different in Ireland. Could you please describe each business type a little more and we should be able to give you some business advice.

Would it be possible for you to set one of these businesses up part time while you are still doing your job? That would allow you to test the market and get something set-up and ready to move into, in the unfortunate event that you do lose your job.

What country or region would you be setting up the business in?

(Moving thread to Free Business Advice forum)

[devilbatista]

Buying house OR trader, The answer depends on Fergal's question. It will depend on the Market. If trading business is going well in the market or if people are buying houses, then you can choose what to do by looking at the market demand. This is something that is related to Economics.

[kingmurtaza196]

kingmurtaza196, hopefully you won't lose your job. I'm sorry but I'm not very familiar with either of those business types, most probably they are called something different in Ireland. Could you please describe each business type a little more and we should be able to give you some business advice.

Would it be possible for you to set one of these businesses up part time while you are still doing your job? That would allow you to test the market and get something set-up and ready to move into, in the unfortunate event that you do lose your job.

What country or region would you be setting up the business in?

(Moving thread to Free Business Advice forum)

Thanks for the sympathy Fergel :).

If i start a trading company , i'll buy a yarn at a cheap price & then sell it myself with my own name whereas if I start a buying office, i'll sell spinning mill's product i.e yarn with my commission but the goods would be dispatched from the mill. I won't have to risk my money in a buying house but I'll get less money whereas in a trading company, i'll have to risk the money but i'll get a good profit in the end.

I'll be setting the business from Pakistan.

[scifi]

Which 1 is better ? Buying house OR trader ?
See Kingmurtaza.......Both business offers good prospects & opportunities in their own terms..In India these two markets used to be with very high potential..But thanks to the Govt. Policies they are not anymore the same.
Moreover since you have mentioned that you are working with cotton yarn company, then it is advisable to start a Trading company since during all these years you might have for sure built a good contact-network which can be very helpful for you in your business too!!! Your experience in this field would be another advantage for you.!!!:)

[Fergal]

Sounds like Scifi has given you some good advice.

Would it be practical to start with a buying office in order to reduce your risk in the beginning and then when you have got some experience in the business and it is going well develop it into a Trading Company with the potential for greater profits? This would also have the advantage of allowing you to develop your business contacts and network before you take on the risk of buying product yourself.

It would also help if you wrote a business plan (even a brief one for your own eyes only) to give you some direction as to where the business is going.

You can find links to business plan templates in our Useful Business Resources / Links (http://www.businessadviceforum.com/showthread.php?t=405) thread.

[kingmurtaza196]

Thanks both of you, Scifi & Fergel.

I'll start a buying office & built some contacts & PR[public relation] then go for a trading company after stream lining the buying house. Fergel, could u do me a favour ? Can u arrange me some contact info of fabric manufacturer.. i would really appreciate that.

[DEADMAN]

That depends upon your local area?

You need to know if people are living in a rented house so they can afford to live in a house at reasonable price. I think you must check them seeing your locality people living standard. Also see what business is taking market on your area. Do you think textile would make you stay at market. I guess you need to know about textile business in your area.

[Nazreen]

Do you have any experience in investing in real estate Kingmurtaza196? If you do plan on investing in real estate (buying and selling houses), I think that it would be a good idea to buy houses now. I'm not that familiar with investing in real estate but I guess it would be the same as any type investment or trading, that is to buy low and sell high. But assuming that the global economy will only pickup after 2 or more years, then you will need to wait until then. Aside from that, you need a very big capital if you want to invest in real estate.

However, if you want to buy a textile trading company, you will be able to realize your profits immediately and not have to wait for a few years. The only question though is that will the yarn business be profitable during these times or not?

[Fergal]

kingmurtaza196 have a look at the search results below. Once you have spent some time looking through those sites, you should have a clearer idea as to what is available in your local market.

Cotton Yarn Suppliers (http://www.google.com/search?hl=en&q=cotton+yarn+suppliers&aq=2&oq=cotton+yarn)
Pakistan Cotton Yarn Suppliers (http://www.google.com/search?hl=en&q=pakistan+cotton+yarn+suppliers&btnG=Search)
Pakistan Fabric Manufacturer (http://www.google.com/search?hl=en&q=pakistan+fabric+manufacturer&btnG=Search)
Fabric Manufacturer (http://www.google.com/search?hl=en&q=fabric+manufacturer&btnG=Search)

Also you might consider doing a search for cotton yarn, fabric manufacturer or textile business associations in your geographic region. They should be able to point you in the right direction re suppliers.

Get a business telephone directory and make some phone calls to potential suppliers. You'd be surprised at how much valuable information you can get from ten phone calls and an hour searching on the internet. You don't even have to give your name or contact details at this stage, if you are not ready to do that.

Please do let us know how it works out for you and please do ask any other business questions you have. It's a pleasure to help and your questions help us as well as you.

[Fergal]

...You need to know if people are living in a rented house so they can afford to live in a house at reasonable price...


Do you have any experience in investing in real estate Kingmurtaza196? If you do plan on investing in real estate (buying and selling houses), I think that it would be a good idea to buy houses now...

:) Thanks for your replies and advice. But I think you might have misunderstood something. Have a look at post 4 (http://www.businessadviceforum.com/showpost.php?p=13984&postcount=4) in this thread. :)

[kingmurtaza196]

Do you have any experience in investing in real estate Kingmurtaza196? If you do plan on investing in real estate (buying and selling houses), I think that it would be a good idea to buy houses now. I'm not that familiar with investing in real estate but I guess it would be the same as any type investment or trading, that is to buy low and sell high. But assuming that the global economy will only pickup after 2 or more years, then you will need to wait until then. Aside from that, you need a very big capital if you want to invest in real estate.

However, if you want to buy a textile trading company, you will be able to realize your profits immediately and not have to wait for a few years. The only question though is that will the yarn business be profitable during these times or not?

You didn't get me Nazreen. Please read my thread from the beginning :) .

Buying house means an agent who sells some good at a commission.

[scifi]

I'll start a buying office & built some contacts & PR[public relation] then go for a trading company after stream lining the buying house.

As far as I know about textile industry, both businesses of Buying House & Trading Company are different in large respects both in functions & way of operations, SO I think that experience of one might not be so much beneficial in other..
Also, at the beginning since you have very little to loose, your opportunity cost is higher if you go for buying house..Since it might be possible that later you may suffer a setback while making a transition from a successful running buying house business or otherwise you will not even think of making a transition..(If I am correct) If you will make transition after suffering losses, why not take a decision now..You have worked in a cotton firm..I think your PR's & network from there is more than sufficient to go for Trading Company...
This is just my point of view..
Last decision should be yours own!!:)

[kingmurtaza196]

Thank you all for your opinions. I'm starting a Buying house as it have a low risk of money.

[Nazreen]

Sorry about that, I got confused with that "Buying House" phrase that you used Kingmurtaza196. I think that right now, we have to minimize our risk exposure so having the goods dispatched from the mill would be a safer and better idea. This is also a better way to get you started with the business and when you're already well experienced in the business, only then will you decide whether to start a trading company or not.

[scifi]

I'm starting a Buying house as it have a low risk of money.
Well Kingmurtaza, Congratulations
For taking decision to make transition from job to business...The decision making process is often the most complex one,,Once decision is taken ..do everything in your hand to make your decision a worthy one...
Also keep us updating about your progress & experiences too!!!

[Fergal]

Thank you all for your opinions. I'm starting a Buying house as it have a low risk of money.

Congratulations on your decision and I wish you the very best of luck with it. Please do keep us updated as to how it works out for you and please do let us know if you'd like any more business advice.

[kingmurtaza196]

Yeah, I'll stay in touch with you guys.. Thanks for all your advices & opinions.