HappyHeart Posted May 23, 2014 Author Share Posted May 23, 2014 Good for you VS! But how are you going to do it without funds? We do have equity, at least 100k actually but when they apply all the complicated calculations turns out they would only offer us 34k Quote Link to comment Share on other sites More sharing options...
VERYSTORMY Posted May 23, 2014 Share Posted May 23, 2014 I am launching from home. A delivery service of prepared meals. Have a looknat dinner ladies in Sydney (google it). For 100k equity you can buy a pretty respectable franchise as well - one of the Perth Poms has bought a dome cafe. Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted May 23, 2014 Author Share Posted May 23, 2014 I am launching from home. A delivery service of prepared meals. Have a looknat dinner ladies in Sydney (google it). For 100k equity you can buy a pretty respectable franchise as well - one of the Perth Poms has bought a dome cafe. I would be interested in speaking to them VS if you have details. I am a member on PP but havent been on for long long time Quote Link to comment Share on other sites More sharing options...
VERYSTORMY Posted May 23, 2014 Share Posted May 23, 2014 On pp look for Rob T. He will be happy to chat about Dome franchising (we can't shut him up lol). But, seriously a great guy. Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted May 23, 2014 Author Share Posted May 23, 2014 Thanks Stormy:) Quote Link to comment Share on other sites More sharing options...
Guest Guest40285 Posted May 23, 2014 Share Posted May 23, 2014 I am launching from home. A delivery service of prepared meals. Have a looknat dinner ladies in Sydney (google it). For 100k equity you can buy a pretty respectable franchise as well - one of the Perth Poms has bought a dome cafe. Good luck @VERYSTORMY all the best mate, Franchises are never your own though, you will be always be working for someone else, I admire what your doing, I would steer well away from a franchise Quote Link to comment Share on other sites More sharing options...
VERYSTORMY Posted May 23, 2014 Share Posted May 23, 2014 Not going down the franchise route - just copying an existing business model that has been successful in Sydney and trying it in Perth. Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted May 24, 2014 Author Share Posted May 24, 2014 What are the drawbacks with franchises @Mattw....and anyone else? I admit I have zero knowledge on any of this (which is why I posted the thread as a starting point! Appreciate all input, thanks Quote Link to comment Share on other sites More sharing options...
VERYSTORMY Posted May 24, 2014 Share Posted May 24, 2014 The pluses of franchises is that it is an established business model, the companies often provide training and support in running the business, there may be advertising done by the corporate body to benefit you and there will usually be help in varies aspects. It can also be easier to get bank funding as you are asking for funding for a known business rather than a risky new business. The down sides are that you can not make all of the decisions - it is your business but only to a point. For example, most mcdondalds are franchises. They have to ran to the model of the corporate body. Quote Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted May 24, 2014 Share Posted May 24, 2014 It's a tough one, sometimes I wish I worked for someone else then I didn't get the legal threats, abuse, complaints etc. It is also guaranteed income (well I suppose nothing is guaranteed, but you know roughly how much you get in your hand each week). I am also a rubbish book keeper. Plus side for us is that I can work from anywhere, ie if we are on holiday because it is an internet business I can still work, although I suppose that should be a negative. But with being ill I've been able to lay in bed and still get my work done. My dr has said I can never work again and should be on disability but with being self employed I can continue working which is great. I think also when you are self employed you put lots of hours in, like I said on another thread I'm usually working around 17 hours a day 24/7. Are you going to run it yourself? I know we considered a cafe for middle son, but I wouldn't want to take the risk as he could easily up and leave and I've no idea. A lady has a sumo salad franchise here, she paid $70,000 for it, yet she can't make any money and she can't even sell it because the shopping mall hasn't given her a new lease because it's in dispute over the rent. Quote Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted May 24, 2014 Share Posted May 24, 2014 Franchises can be expensive as well. Quote Link to comment Share on other sites More sharing options...
Freckleface Posted May 25, 2014 Share Posted May 25, 2014 Because most small businesses fail in the first five years I would recommend you do some sort of small business course before you do anything else. It will at least open your eyes to the things you need to consider. Tafe WA might offer something. I would look for one that covered understanding the business environment, establishing and operating a successful small business, how to develop a viable business plan so your business survives in a competitive environment, financial aspects such as pricing, breakeven analysis and marketing (including target marketing) etc. I would also look for an excellent accountant who can provide you will the skills you don't have and can not only help you navigate legislative requirements - insurances, tax etc but can review the books on any business you might consider buying and give you the real picture on how viable it is. Personally I would avoid retail including cafés. Most end up being money pits that after the first flush of custom tend to break even if they are lucky. Not all of course - but you have to be really lucky to make any real money - remembering turnover isn't profit. Given your limited budget I would avoid franchises as the good ones are out of your current financial reach. Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted May 25, 2014 Author Share Posted May 25, 2014 Because most small businesses fail in the first five years I would recommend you do some sort of small business course before you do anything else. It will at least open your eyes to the things you need to consider. Tafe WA might offer something. I would look for one that covered understanding the business environment, establishing and operating a successful small business, how to develop a viable business plan so your business survives in a competitive environment, financial aspects such as pricing, breakeven analysis and marketing (including target marketing) etc. I would also look for an excellent accountant who can provide you will the skills you don't have and can not only help you navigate legislative requirements - insurances, tax etc but can review the books on any business you might consider buying and give you the real picture on how viable it is. Personally I would avoid retail including cafés. Most end up being money pits that after the first flush of custom tend to break even if they are lucky. Not all of course - but you have to be really lucky to make any real money - remembering turnover isn't profit. Given your limited budget I would avoid franchises as the good ones are out of your current financial reach. Thank you Freckle, that's just the advice I was after:) It was just an idea really...you gotta have a plan! Dreams..hopes! Had thought of hubby doing a Tafe business course too.....one day..we will find that winning formula...back to the drawing board... Quote Link to comment Share on other sites More sharing options...
Paul2412 Posted July 1, 2014 Share Posted July 1, 2014 This seems like a pretty good thread for this question... Before moving to Aus, I ran a small business in the UK (an online one) which made a small amount of money (less than 10K per year, so not enough to live on). When we came here I stopped trading, and the company is now dormant. Has anyone had any experience of running a UK based company whilst in Australia? Specifically around the financials and tax implications. If by some chance the business starts to make a decent amount of money then what are the conditions of transferring it here? Quote Link to comment Share on other sites More sharing options...
cava83 Posted July 3, 2014 Share Posted July 3, 2014 I know where you are coming from. I have no equity or funds - just put everything into building a house. At the same time my skills are not wanted by industry due to the mining downturn and are not suitable at the moment for self employment for the same reason. But, that is the very reason I am going to launch me own business. It is scary as hell. But if you think outside the box it is possible. You need to think about what skills or interests you have outside of what you would market yourself for a job and look at them. Then start thinking about how you can apply them within your means. For me, that has led to a food business that I am getting ready to launch. But I also looked at a huge range if things such as market stalls. It has also inspired my wife - she hasn't worked since being in Oz. Then one day she bought some VERY expensive jams and preserves and thought they were disgusting. So is looking to make her own and sell them at market stalls - people make very successful business's that way. My research has found people making six figure incomes from market stalls. She isn't interested in the sort of money. Just enough to be independent. For me, I am taking inspiration from my brother in law. He quit his job and announced he was selling his house in 2008 just after the GFC hit London. He said he wanted to open a restaurant but needed to raise a million pounds. Needless to say we all thought he was mad - heck, this was the GFC, no one was investing in anything, let alone a restaurant by a guy with no restaurant experience. Well, he raised his million, opened, has been voted best restaurant in London, listed by the Times as one of the most influential people in London, launched a cook book that knocked Jamie Oliver off the number 1 spot and opened a second restaurant. That has taught me, dreams are possible. It can and will be very hard work. But, I know if I asked him what his regrets are, he would say not doing it earlier. That is simply awesome (brother in Law) Quote Link to comment Share on other sites More sharing options...
Marisawright Posted July 3, 2014 Share Posted July 3, 2014 (edited) Good for you VS! But how are you going to do it without funds? We do have equity, at least 100k actually but when they apply all the complicated calculations turns out they would only offer us 34k I would say, if the bank is saying you don't have enough capital then they're probably right. Remember, the bald facts are that small businesses often fail - and no matter how careful you are, there's a chance yours might not work out either. Do you really want to saddle yourself with all that debt on such a risky venture? Be very careful buying an established business. It is all too easy for the seller to "cook the books" so you think it's doing better than it is. My friend bought a business last year, and she has since discovered she paid more than the stock was really worth - and a lot of the stock is just stuff that never sells. Plus, although the seller claimed the business had "lots of potential", his real reason for selling was because he anticipated a rise in competition from overseas, which has now eventuated and is badly affecting her sales. I'm not saying no one should ever buy an established business - it's a great way to get a flying start - but you do have to be sure to get professional advice and research it very carefully. And don't invest what you can't afford to lose. Is there a home business you could start with, to test the waters (like Verystormy's idea of selling jams). You can sell at markets and online - it doesn't cost much to get a website put together (my standard fee to design an online shop is $500). http://smallbiztrends.com/2013/03/infographic-failed-small-businesses.html Edited July 3, 2014 by Marisawright Quote Link to comment Share on other sites More sharing options...
chubbs75 Posted July 3, 2014 Share Posted July 3, 2014 I am launching from home. A delivery service of prepared meals. Have a looknat dinner ladies in Sydney (google it). For 100k equity you can buy a pretty respectable franchise as well - one of the Perth Poms has bought a dome cafe. I was thinking about the same service with a slight twist here in NSW. What about certificates and licences for kitchen etc ? Is it easy to get the green light from the authorities? Quote Link to comment Share on other sites More sharing options...
Si T Posted July 3, 2014 Share Posted July 3, 2014 On pp look for Rob T. He will be happy to chat about Dome franchising (we can't shut him up lol). But, seriously a great guy. I know Rob personally and he is the type to be more than happy to help. I will give him a call this evening and ask him to pop on here and take a look at the thread. Cheers Si Quote Link to comment Share on other sites More sharing options...
Si T Posted July 3, 2014 Share Posted July 3, 2014 If anyone is looking to start a small business and needs any advice then please feel free to PM me. No cost, I am just happy to help anyone who may be looking to go down the path of running a business, even if that advice is to wait as the pieces do not fit at that time. I am a Chartered Management Accountant and have run the finance function of businesses for almost twenty years including a number of SME's. At the very least I can help you to ensure that you have covered everything before you make the final decision. Cheers Si Quote Link to comment Share on other sites More sharing options...
cava83 Posted July 3, 2014 Share Posted July 3, 2014 If anyone is looking to start a small business and needs any advice then please feel free to PM me. No cost, I am just happy to help anyone who may be looking to go down the path of running a business, even if that advice is to wait as the pieces do not fit at that time. I am a Chartered Management Accountant and have run the finance function of businesses for almost twenty years including a number of SME's. At the very least I can help you to ensure that you have covered everything before you make the final decision. Cheers Si You're going to regret that :0) PM sent. Thanks in advanced. Quote Link to comment Share on other sites More sharing options...
Playghirl Posted July 3, 2014 Share Posted July 3, 2014 Lol, this place is full of good guys! wish I had a business plan to send you!! Quote Link to comment Share on other sites More sharing options...
Guest Posted July 3, 2014 Share Posted July 3, 2014 Hi HH My OH started a small business in Perth - he attended a free workshop run by the 'Small Business Development Corporation' http://www.smallbusiness.wa.gov.au They provide a lot of on-going help too and specific to the legislation of WA. I knew two families who ran cafes in Fremantle, and I knew them well enough to know the pain, heartache and stress that it caused. In one case the business went bust, as did their marriage (a long and happy marriage before that) and in fact they desperately tried to persuade the second family from buying a cafe - it was perceived as jealousy at the time. In the case of the second family he was a very experienced & somewhat well known chef (you probably wouldn't have heard of him but he'd even been on Ready Steady Cook!), he is now re-training to be a psychologist and I heard the cafe is on the market. I know it's a dream for a lot of people but I think it can quickly turn into a nightmare - you would definitely have to be prepared to lose whatever money you put in, I would avoid the combined 'home/business' idea as you could easily lose both. But if you're still determined how about this one... http://realtyplus.harcourts.com.au/Property/423787/WRP4376/Fremantle... This is not my friends cafe but on the same strip and a very good location. If the foodie business is where you'd like to be, definitely think about markets - the start-up costs are low and you can do as many or as few as you like plus there are a number of big food festivals each year. Another couple of Freo friends have built a very successful businesses that way (not saying it has been stress-free but certainly easier) http://andersencacao.com.au http://www.littlesweetbaking.com.au/littlesweet-products.html Plus it doesn't need to be 'all or nothing', you can do it as well as your 'day job' at first and as profit grows reduce the day job to part time - that's what Alan who is the chocolatier has done. I have to say though this is what my OH tried and in the end he had to bite the bullet and go full time in his own business as it was too difficult to progress. Good luck and I'm sure you'll have a first flush of customers from PIO whatever you do. Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted July 3, 2014 Author Share Posted July 3, 2014 Thanks Guys but I've gone off the idea myself now....I have a lot of 'ideas':rolleyes:...great information for all though. Many thanks for contributions Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.