22, six-figure salary, web developer, what next?

Discussion in 'Growing and Managing a Business' started by beartheweak, Jul 18, 2013.

  1. beartheweak

    beartheweak
    uix_expand uix_collapse
    New Member

    Joined:
    Jul 18, 2013
    Messages:
    9
    Likes Received:
    4
    Hey guys. I'm new to the forum and I think this place will be helpful in gaining solid advice.

    I'll give a quick "about me" in the form of a bullet list:
    • 22 years old.
    • Am a web and software developer (know about a dozen different programming languages/libraries/frameworks).
    • Have been been doing software development work professionally for four years (but jeeze, the amount of hours I've worked is equivalent to 6 or 7 years).
    • Bought my first house before I turned 21.
    • Developed an interest in and began programming at age 13.
    • Dropped out of high school to focus more time on sharpening my programming skills (instead of getting right into my first startup, I took a job opportunity).
    • Took my GED soon after leaving school and scored in the top 1% of America on the mathematics section (not sure how much that's saying, hah).
    • Founder of two startups. Both of which have been "discontinued".
    • Have a stay at home wife to take care of.
    • Have two kids (oldest is 3.5 years).
    • Recently broke the six-figure, annual income mark with a new job position.
    • Confident in my skills and adaptability to take on any challenge.
    • Will have around $50,000 of disposable income per year. This is after taxes and after normal bills. However, in the next year, I foresee about $35,000 worth of non-business related projects coming up that are essentially necessary (when The Wife says she wants renovations, you get the dang renovations!).
    • Am a very ambitious entrepreneur and hard worker (over the years, I generally spend 40 hours/week at my full-time job then an additional 20-40 hours/week on side projects or ventures).
    • Am a self-learner... I spend a great deal of time in independent studies to better my skills and knowledge.
    • Have a few different business ideas (eventual web applications) that are moderate to high risk (aren't they all, though?). One of which is almost fully developed and I have high confidence in. I also have two failed startups' worth of experience on "how to fail" (a lot of it had to do with really crappy partners). Still, a failed startup is just more experience on how to come closer to succeeding next time. I guess this also leads me to my next point.
    • Am optimistic, but very analytical and know how to be reasonable in my goals so as not to overload myself.

    Notes: I can use my disposable income to pay off on my house (my only real debt, at the moment). However, I only have a 4% interest rate on the mortgage and with inflation projected to continue at about 2%, I'm not in a rush to pay it off when there are better options (plus tax benefits on the mortage). At this point, it seems wiser to either a) invest my disposable income into something that can yield returns greater than the interest rate on my mortgage (e.g. stocks) or b) invest my disposable income into developing some of my own business ideas over the years. Obviously, investing in the stock market (although volatile) would be the more conservative choice of the two. Still, option b) has the potential to generate outstanding returns (or, you know, flunk- leaving me with a loss). Another problem with option a) is it's more of a passive thing (I'm not looking to getting into active day trading either), whereas option b) is aligned more with my passions. On the flip-side, I have already spent thousands of hours working on partners' startup ideas, and would hate to see thousands more invested into nothing if option b) falls through.

    Questions:
    What would you recommend someone in my shoes should do? Should I start a portfolio investing in stocks? Should I chance it and follow through with the business idea I am most confident in? Should I maybe look into doing something else with my skills or money (e.g. finding a local company that needs investment and turn it into a sweat equity)? Please, also share with me any options I may be overlooking.

    Thanks BAF community! Also, I look forward to helping the community with whatever software/web development advice I can offer.
     
    • Like Like x 1
  2. Rocky

    Rocky
    uix_expand uix_collapse
    Member

    Joined:
    Nov 3, 2012
    Messages:
    675
    Likes Received:
    182
    If feels good to see someone so successful at an early age.

    There is a rule in business, "higher the risk, higher the reward."

    So if you want to be rewarded greatly then you need to take that risk of starting your own project.

    That being said, if you are considering investing stocks then you need to have some idea about it and need to put it great deal of time as well. Which may interfere with your current job.

    Depending on your objectives you need to decide.
     
    • Like Like x 1
  3. Fergal

    Fergal
    uix_expand uix_collapse
    Premium Member
    Premium Member

    Joined:
    Nov 18, 2007
    Messages:
    10,575
    Likes Received:
    1,165
    Welcome to BAF beartheweak and congratulations on the success you have achieved.

    If I was in your shoes I would pursue my own start-up project. That is where your area of expertise is and it is something that as Rocky says has very high potential rewards, albeit with higher risks. I also feel that any success you achieve from your own start-up, will be much more satisfying to you than success from investing in someone else's projects. Hopefully you will have learned a lot from your previous business starts and you can use this to achieve success in your new venture.
     
    • Like Like x 1
  4. beartheweak

    beartheweak
    uix_expand uix_collapse
    New Member

    Joined:
    Jul 18, 2013
    Messages:
    9
    Likes Received:
    4
    Oh yes, that's the unfortunate truth. :p

    Well, I've done lots of research on investing in stocks, so that barrier to entry isn't very high for me at this point.

    Seeing as how I do want to be rewarded greatly, I'll take it you think I should go with the startup option.

    - - - - Posts Merged - - - -

    Thanks Fergal- that's very insightful. I didn't take into consideration the greater feeling of achievement from my own start-up. I do imagine that would be more satisfying than investing in something that isn't "my baby".

    I'll take this as vote number two in favor of high risk, high reward.
     
    • Like Like x 1
  5. AnushaJain

    AnushaJain
    uix_expand uix_collapse
    Active Member

    Joined:
    Apr 7, 2013
    Messages:
    2,006
    Likes Received:
    355
    I think you should invest part of your money on shares,another part on gold,another part on land and then start your own company or business,
     
    • Like Like x 1
  6. beartheweak

    beartheweak
    uix_expand uix_collapse
    New Member

    Joined:
    Jul 18, 2013
    Messages:
    9
    Likes Received:
    4
    I like the idea of diversification. However, with it going into so many different places, it might spread me too thin. I also won't be able to start on the business until after I start getting any returns from the other investments (anything significant might require me to wait 5 years or longer).

    On the other hand, I haven't put much effort into forecasting the amount of capital I'll need to launch the business. It's very possible that I could launch it with my skills, alone, and only rely on a very small amount of capital to host the website. The problem with doing this is I won't be able to market it very much. That scares me because a site getting a small amount of user traction won't grow very fast... which gives competition the ability to come in and clean me out with their own website (with capital invested into marketing).

    Maybe I should just build the first version, plan the second and third versions, then take everything I have to investors before launching in order to see if I can secure some seed funding. I could see how your idea could work AnushaJain. Thank you for the insight.
     
    • Like Like x 1
  7. Rocky

    Rocky
    uix_expand uix_collapse
    Member

    Joined:
    Nov 3, 2012
    Messages:
    675
    Likes Received:
    182
    Yes, that is what I would suggest.

    You could think of investing in multiple assets to be on the safer side but I guess then you would not be left with much capital for going ahead with your startup project.

    If you are looking to seek financing from investors then you need to do some planning. Like you said you haven't worked on the capital requirement part you need to work on it and have a viable business plan before you think of approaching any investors.
     
    • Like Like x 1
  8. singhabhishek251

    singhabhishek251
    uix_expand uix_collapse
    Member

    Joined:
    May 22, 2013
    Messages:
    123
    Likes Received:
    3
    After going through all your explanation, and the suggestions given to at BAF. I would like to suggest you that you should invest in your own start-up business as you have more knowledge about getting UN-successful so you can avoid them and as you said that those were mostly because of your partners, so I think you have more chances of getting successful in your own start-up.

    About equity investment I will suggest not to invest now because when you go there it looks familiar and you think that you know many things, but occasionally you lose and it needs a more research and an eye every time on market and I think that would be difficult. Unless, you are ready to lose a large amount do not go to equity, you may invest a little just for fun and get more knowledge for the future.

    I have experience in both I have invested in equity and I lost all my money though I am having a good knowledge about the World market as well and I was giving all my time for this only as I found this pretty exciting, so even I was losing I was ready to invest more. Later, I started my own start-up by working hard and without investing more amount in this and earned some money to pay for my debt as well, which I got because of equity.

    So the best option would be to invest in your own start-up in a well-arranged way without much risk and invest a little amount just to get real time knowledge and experience about equity market so that you can also take into that after getting more money and there is no fear of losing money.
     
  9. alicemenezes

    alicemenezes
    uix_expand uix_collapse
    Member

    Joined:
    Oct 18, 2012
    Messages:
    86
    Likes Received:
    4
    Enjoy life..!! :D Try to have your own business maybe? Aim for better.
     

Share This Page