Business Ideas for Lottery Winners
Winning the lottery may seem like the path to eternal wealth and happiness, but previous lottery winners often prove that theory wrong. From being harangued by charities, friends and family members for donations to spending recklessly and losing it all, you have a number of quandaries to deal with. After getting your personal debt paid down and socking some of your winnings in stable investments, instead of going to work for someone else, this may be the time to invest in your own business — one that tickles your fancy and powers your passion.
You may be in the mood for celebrating once you win the big jackpot. Instead of throwing away all your money at other people’s establishments, open your own bar or nightclub and bring the party to you every night. All the while you can be building up your equity and at least maintaining your cash flow. You’re in exactly the right position to beat the odds and generate income within six months to year, according to Entrepreneur, which reports the main reason new bars fail is because they don’t have enough start-up capital. You’ve got that covered; now you can put your creative hat on and build the kind of social interaction the way you like it. Bring in the bands you like, hire a top-notch manager, and come and go as you like.
You may have travel on your wish list once you become a millionaire. While you would love to cruise the South Pacific, laze seaside at the Riviera or visit every big city in the USA, you still may be concerned about using up all your winnings. A travel agency may be the ticket to provide you with discount travel while building a lucrative business and provide other travel agents with jobs. According to Entrepreneur, the travel industry generates about $1.3 trillion in revenue every year. There’s no reason you can’t tap into that cash stream and enjoy your travel “on the house.” The easiest and fastest way to get started is to buy a franchise that’s already plugged into the industry. You can get started immediately once you purchase a package from one of the many online travel companies.
Real Estate Investment Company
Once you get the most talented crew together, real estate investment can be one of the most lucrative businesses you can enter, according to Realty Times. You’re already over the first major hurdle that most investors encounter – finding financing. With a sound Realtor on your side, a hard-working project manager, a title company and closing attorney, you can shop around for solid housing deals, fix them up to your heart’s desire and flip them for a profit. Before starting however, set up a limited liability corporation to protect all those personal assets you still hold.
Take your favorite pastime and turn it into a business. Now is the time to take advantage of your interests and pursue them to the max. By owning a shop dedicated to your favorite hobby, you will have access to wholesale pricing, be able to offer like-minded enthusiasts jobs in your community and get in touch with others who share your interests on a regular basis. Whether your passion is fishing, cooking, woodworking, quilting, drawing or building model trains, you can find a small shop in which you can build a business. You need to reserve enough to cover some of the expenses for the first seven years or so, which is about how long it takes for the average hobby shop to turn a profit, according to the National Retail Hobby Stores Association. But if you can stick it out, you can follow your bliss and eventually take in about a 10-percent annual profit on your investment.
- Forbes: 10 Things to Do When You Win the Lottery
- Entrepreneur: How to Start a Bar/Club
- Entrepreneur: How to Start a Travel Service
- Realty Times: Eight Steps to Setting Up a Real Estate Investment Business
- National Retail Hobby Stores Association: The Hobby Shop Owner’s Guide
Linda Ray is an award-winning journalist with more than 20 years reporting experience. She’s covered business for newspapers and magazines, including the “Greenville News,” “Success Magazine” and “American City Business Journals.” Ray holds a journalism degree and teaches writing, career development and an FDIC course called “Money Smart.”Business Ideas for Lottery Winners. Winning the lottery may seem like the path to eternal wealth and happiness, but previous lottery winners often prove that theory wrong. From being harangued by charities, friends and family members for donations to spending recklessly and losing it all, you have a number of …
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Why Starting a Business Beats Winning a Lottery
When I was 20 years old and investing every penny I could find into my summer businesses, one of my friends begged me to buy a lottery ticket she was selling to benefit the American Cancer Society. I told her that I don’t buy lottery tickets, and that they aren’t a good investment. She said she had already told her boss at her day job that she had sold all of her tickets, and if it was found out that she didn’t she said she would get fired. Begrudgingly, I bought the $1 lottery ticket just to help her out.
One week later, a representative of the American Cancer Society called me, told me I had won the raffle, and asked me to set a time when could I come pick up the grand prize of a small sailboat. The boat was worth $600, a 600-fold return on my investment of $1.
This lottery was a great win for me. However, I have found that a successful small business can have much higher return than even a winning lottery ticket. I started Adams Media Corporation, a book publishing business, with about $2,000 and sold for it for $40 million, a 20,000-fold return.
Your Best Bet for Making Money Is a Small Business
Today, running a small business is your best bet for making lots of money. In fact, the odds of becoming a multi-millionaire by running your own business are much better than your odds of making it anywhere near the top of the corporate job world.
If you make some of the right choices and work hard, how successful can you make your small business? Probably a lot more successful than you think. There are many very small, even one-person businesses where the owner makes more money than all but the very top executives at the largest corporations.
It’s probably a lot easier than you may think to succeed with your own small business. It’s also a good deal less “chancy” than entering raffles and lotteries.
The Biggest Rewards in Running a Small Business
You might be surprised to find that the real satisfaction in running a small business doesn’t lie in the monetary rewards. The real satisfaction is more likely to come from such intangible factors as:
- The constant stimulation of tackling endless challenges;
- The feeling of pride in the fine workmanship involved in building great products;
- Delivering great services;
- The satisfaction in fulfilling customers’ needs;
- The sense of fulfillment in providing employment and career growth for those who work for you;
- The gratification of being in control of your own destiny;
- The pride in making a highly tangible contribution to society;
- The thrill of achieving success.
You will never get those more meaningful satisfactions from getting lucky in the lottery. I’ve won a lottery and I’ve won at small business. Winning at small business is a heck of a lot more rewarding.Entrepreneur Bob Adams explains why you have better odds at making a million dollars by starting your own business than trying your luck at the lottery. ]]>