Hi,

I am currently still a student, studying B.Com Supply Chain Management, and I ran a company for a year and then sold, due to a few reasons, but mainly that I did not get along with my partner and the type of business decisions he made. I am going to reinvest the capital i made from this sale into a new business, which I believe is much better than the first business.

The only issue I have is, that with the money I earned from the previous company and the money that will come from this business(client is basically waiting for me) is that I dont know what to do with it. I would like to know from you guys what you would reccomend, now I still stay with my parents, and dont have any debt.

I will be reinvesting the money I make with the new business up untill a certain point where I would like to take a salary.

This was my basic plan:

I will have 70% interest in the business, and will be reinvesting all profits and expanding the product range untill I can sell 20% of my shares for an amount of R1mil(I know how this sounds, but my last company sold for R300 000), I would then take this R1mil and buy a company called oneserv which i believe is now maister or something (won franchise award of the year 2011) which is basically a micro lending business, where they garuntee you a 19% return on your capital(compound interest effect).

Now i will have 50% interest left and pump all extra cash from my salary into the oneserv business. What do you think?

Plus if I do take a salary and would like to buy a new car, what do you recommend financially, or what % of nett income should I be sensibly spending on a car?

Thanks for any input.