Having began my career as a broker in the oil derivatives market in the late 1990’s, two clients recently approached me for investment to set-up a trading company that hedges oil exposure for an insurance company. This business not only streamlines competition with banks on oil trading, but it also runs at tighter margins, becoming more competitive than all other businesses in the sector whilst providing an oil trade with high profit margins.
I was delighted to become a co-founder of ERA, because it ensured that I could keep my longstanding and trusted relationships in the oil market, maintain my friendships with investors and keep a business interest in London.
“Subscribe to my YouTube channel to learn about the different revenue streams and also to watch our ‘£zero-100k’ journey, in which we flipped all types of items, taking us from zero cash to the purchase of a house and much more in less than 12 months.”
Always give yourself two or more exit strategies from any deal. If you have one main exit and that doesn’t work, you will need the other exits to fall back on, otherwise you have no easy way out without incurring financial risk and hitting the bottom line.
When setting up a business, don’t let the high set up costs force you into a finance deal that will hurt your cash flow going forward. Try to think creatively – one of my businesses has given me passive income from year 2 which was way ahead of the market average. This was achieved by buying and selling used equipment, thus enabling me to reduce my setup costs by over 70%. This gave the business a much better chance of surviving from the outset.