Can you get rich in the recession? FOUR MILLIONAIRES REVEAL THEIR CRUNCH BUSTERS.THE recession is biting, unemployment in the UK is edging towards three million and millions more are living with the fear of redundancy. But for some people Britain's worst slump for 70 years isn't the end of the world...it's a cash-spinning opportunity. Thousands of entrepreneurs have made their money buying up stocks, shares, properties and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. in the depths of previous economic crises. Today GRACE MACASKILL asks four of Scotland's top business brains: Is it possible to make fortunes out of the financial chaos? CURRY TYCOON MILLIONAIRE curry king Charan Gill claims making cash is all about risks - even in a recession. The former Indian restaurant tycoon advises people with any spare cash not to leave it in the bank but to invest in property. He said: "Some people I know are taking money out of their property and buying more. "If you are planning on taking money out of your house it is better to buy a second home than spend it on assets that depreciate depreciate v. in accounting, to reduce the value of an asset each year theoretically on the basis that the assets (such as equipment, vehicles or structures) will eventually become obsolete, worn out and of little value. (See: depreciation) such as cars or holidays." Charan, 53, of Glasgow, says the consumer lifestyle of "buy now - pay one day" is to blame for the economic downturn. He said: "In Britain we can be very loose with our money. We have all been living beyond our means. "In India the mentality is to save first and buy later and people seem to have a greater value of money." Charan, who sold his Ashoka restaurant chain for pounds 8million, started off with nothing when he arrived in Scotland from the Punjab aged nine. He said: "I remember 25 years ago I was standing in the Co-op putting back shopping I couldn't afford but I took risks and they paid off. "We can all learn to save money. For instance, we love to buy in bulk but half the time we don't even need what we buy." CHARAN GILL TOP TIP: INVEST IN MORE PROPERTY 'We have been living beyond our means..we need to save' OIL BOSS OIL tycoon Alasdair Locke Alasdair Locke is the chairman of the Scottish oil company Abbot Group, which has rigs in Africa (Libya), the North Sea, Sakhalin Island and other areas. He was Entrepreneur of the Year in 1999. might be worth pounds 114million but even he is not willing to gamble in a recession. As chairman of Aberdeen oil service company Abbot Group, Alasdair has made a huge amount of his fortune taking over companies. But he believes now is the time to be cautious with cash and he advises people to make clearing their debt a priority. Alasdair, 55, of Grampian, said: "It would be reckless reckless adj. in both negligence and criminal cases, careless to the point of being heedless of the consequences ("grossly" negligent). Most commonly this refers to the traffic misdemeanor "reckless driving. to start speculating right now. It's time for prudent housekeeping A set of instructions that are executed at the beginning of a program. It sets all counters and flags to their starting values and generally readies the program for execution. to clear any outstanding financial obligations. "I'm not saying people shouldn't take a holiday or have a good time but it's time for everyone to do what the Government should have done and be prudent with our money. "There are always places we can make savings, for instance car sharing or walking to work. "I wouldn't take any huge risks for the time being, such as buying property, as we have no idea how long these tough times will last." Alasdair said anyone with spare cash should invest in established British companies such as Tesco. He said: "There is no point putting spare cash in the bank. It would be better investing in the blue chip companies but people must realise that investment is for the long term - three, four or five years." ALASDAIR LOCKE TOP TIP: SNAP UP BLUE CHIP SHARES 'I wouldn't take any huge risks right now..that would be reckless' INVESTMENT MARTIN GILBERT runs one of the biggest investment companies in Britain and says there is still money to be made for those with a bit of extra cash. But Martin, 54, advises paying off existing debts before investing. He is Chief Executive of Aberdeen Asset Management which secured a pounds 250million deal to buy parts of the Swiss bank Credit Suisse The Credit Suisse Group (SWX:CSGN, NYSE: CS) is a financial services company, headquartered in Zürich, Switzerland. It is the second-largest Swiss bank, behind UBS AG. . He has taken many business risks but advises people to combat the recession by cutting back on luxuries and making the right long-term financial investments. Martin said: "Both businesses and individuals should look to cut their costs. In the good times we tend to spend lots of money on luxuries such as dining out Dining Out is one of the many traditions held by the military today. The history dates back to when Roman soldiers would hold dinners in honor of an individual. Later, British naval officers held a "guest night" to relax with other military personal and honored guests. or flat-screen TVs. "This spending can be cut back and the money used to reduce your debts or invested." With the Bank of England's base rate at a 315-year low of one per cent, Martin recommends investing in strong, well-established companies which could offer attractive yields - well above rates on savings accounts. He said firms his companies invest in include British American Tobacco British American Tobacco Plc (LSE: BATS, AMEX: BTI, KLSE: BAT) is the second largest listed tobacco company in the world. It is based in London, England and is a constituent of the FTSE 100 Index with a market capitalisation of over £29 billion as of June 2005. , Centrica and Tesco. Martin added: "All three should be strong enough to survive the downturn and offer good capital growth potential for investors." MARTIN GILBERT TOP TIP: PAY OFF EXISTING DEBTS 'People should look to cut costs and make the right investments' COMPUTER BOSS COMPUTER boss Louise Scott believes Scots List of Scots is an incomplete list of notable people from Scotland. Actors (see also humorists) Please refer to List of Scottish actors Architects
Louise, co-founder and managing director of Edinburgh-based IT services firm Tidalfire, said: "Things are tough at the moment but I don't believe the picture is as black as everyone has painted it. "It's all about finding a balance financially. You can save money but you still have to enjoy yourself from time to time and not feel guilty. "If you buy two dresses a month or have two beauty treatments a month, cut back to one. "The economy is all about confidence and if we don't spend we will find the high street will change dramatically as businesses close down." Louise said companies were trying to buoy each other up as world financial markets go into meltdown meltdown Occurrence in which a huge amount of thermal energy and radiation is released as a result of an uncontrolled chain reaction in a nuclear power reactor. The chain reaction that occurs in the reactor's core must be carefully regulated by control rods, which absorb . She added: "If people ask me if we can cut prices because times are tough I try to help them as much as I can and my suppliers do the same for me in return. It's all about supporting each other." Married Louise, 42, not only runs a successful firm but is also a polar explorer. In 2005 she became the first Scottish woman in 40 years to complete a 335-mile trek across the Greenland ice-cap. LOUISE SCOTT TOP TIP: SPEND SPEND SPEND 'It's all about confidence..if we don't spend businesses will close' CAPTION(S): Property plan: Charan; Prudent: Alasdair; Risk-taker: Martin; Support: Louise |
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