I quit today! Back into business, $56000 to invest + $75000 from a friend willing to chip in. Open to all suggestions Thanks

Aerith-Waifu on 17/09/2017 - 02:07
Last edited 18/09/2017 - 21:40

Hi Guys:

I quit my job. https://www.ozbargain.com.au/node/325061?page=2#comment-4997…

And I feel GREAT!!! I honestly have not felt this good for a long time.

I am going back into business. And I am willing to risk my entire savings of $56000. A friend of mine is also in a similar position who is willing to chip in $75000 if we have settled on an idea. (full involvement for me and part involvement for him)

So far the suggestions I had from others are (either joking or seriously):

Put it all on the Red (No thank you)
Get to know the head bikies (errrrr…………..)
Put it all on the Eagles (No thank you and they just lost tonight)
Invest all in LEGO and Envelops (Ok but wont generate cash for a few years)
Open a massage business (Maybe, Would $130k be enough to do one?)
Start an online business selling stuffs from China/Vietnam (eBay? Fees too high and postage too expensive within Australia, not so keen on this idea)
Go to food fairs and sell some food (Its workable but there is only few each work, dont think its enough to make a living out of it)
Buy an ice cream business (I doubt you can buy an ice cream business for less than $300k these days and we only have around $130k in capital)
Start a boutique food business specialising in few things, small shop front, lots of traffic, takeaway etc (I like this idea)

I would like to hear business owners and people working for others. Please kindly share what types of business you work for, what made the business tick and what made it going down hill. (Please do not name the business, just the types of business for privacy reasons)

Thank you all!

PS: Some good advice from everyone already, thanks heaps and keep it coming.

Please kindly share the types of industry you are in. Is the business doing good, or not so good?

UPDATE: Thanks for all the comments and suggestions below. Much appreciated.

Today I received a call from my management indicating they are happy to put me on the casual shifts, hours are not long, 4 hours per shift doing maybe 20 hours a week, and the pay will be $25 an hour + bonus (Which was never the case when I was working for them part time, this is a much needed confident boost for me and I believe its a step in the right direction. With this casual hours in mind at least I would have some income coming in while I decide on what do to. Thank you all and keep the comments coming. I will do more reply later. Thanks again. What a great community we have:)

Poll Options

  • 304
    You are mad!
  • 7
    I am with you but I won't risk it at your age.
  • 48
    Food is the way to go, we all have to eat.
  • 27
    Others (please write in comments if choosing others)
Financial

Comments

        • Ahbal on 17/09/2017 - 16:36

          @outlander:
          A lot of the value from lego comes from it being genuine products. There are already companies making fakes (Lepin for example) flooding the market, yet lego still retain their value (must be kept sealed ofc). Lego collectors have been doing the following method for years:

          1: Buy current sets (for this example lets say 3x $20 ones to keep it simple).
          2: Sell 2 of them (or however many depending on collector) when they retire the next year (atleast $30-$40 each). So in this example thats $60-80. Then use that to buy the current sets.

          Rinse and repeat. This is not accounting for the higher price increases that the larger sets get (such as Gunships). Sure, it may not last forever but its been going strong for at least a decade or more.

        • FW190 on 17/09/2017 - 23:50
          +1

          @Ahbal:

          2: Sell 2 of them (or however many depending on collector) when they retire the next year (atleast $30-$40 each). So in this example thats $60-80. Then use that to buy the current sets.

          and your profit for the next 2 financial year will be $60 to $100.

          it might be ok to do it on the side to earn some beer money, but the OP is asking about starting a business (hopefully s/he meant a long term, sustainable, and profitable one), it may not be too useful for him……….

        • Ahbal on 18/09/2017 - 10:56

          @FW190:

          I was using that as an example…times it by 100 sets or more if you like. I wasn't justifying it as a sole investment to get you a lot of money, I was saying that it really isn't a joke as it does net you a profit, no matter how minimal. It would be a good idea for perhaps a teenager or young adult looking to make some on the side or a collector to use this method to fund their hobby (which is what many do).

        • FW190 on 18/09/2017 - 12:17

          @Ahbal:

          yeah, as a hobby on the side it is alright, but over the years, I have seen too many people/shops (both online and B&M) going bust trying to sell toys (I myself were into Star Wars action figures), regardless of whether they were catering for kids or collectors.

        • Ahbal on 18/09/2017 - 15:49

          @FW190:

          Yes those are different I assume. The value of Lego Star Wars sets comes from
          The sets being retired within a short time (usually 6 months-12 months). Which is what gives them this "profit" capability. I don't know about any other toys, but Lego Star Wars works well to fund a hobby as a collector of such items for sure.

    • Aerith-Waifu on 17/09/2017 - 16:26

      I have some rare lego set. I believe LEGO is a good investment, however, it takes time, its great for people who have money.

  • Shame on 17/09/2017 - 15:23
    +2
    1. Collect underpants
    2. ?
    3. Profit!
    • Aerith-Waifu on 17/09/2017 - 16:28

      Believe it or not, this crazy idea did came across my mind.

      Selling used under wares……….

    • BartholemewH on 18/09/2017 - 09:52

      Kawaii!!!

  • [Deactivated] on 17/09/2017 - 15:29
    +3

    Have you thought of carpet cleaning?

    Less than 10k to set up.
    Get an employee to do the work and
    you just manage bookings.

    Easy money

    • Aerith-Waifu on 17/09/2017 - 16:29

      No, never thought about it. I would think equipment wise $10k should be enough. Marketing wise I need to do more research on this one. Thanks

      • BartholemewH on 18/09/2017 - 09:54

        This is a good suggestion imo. I know someone semi retired off good money that still does this himself and employs others because the returns are good.

      • GregMonarch on 19/09/2017 - 01:23

        $10k doesn't buy good machinery, unless it's secondhand, and even then - if they're still in business themselves, why do have they have it up for sale? Because there's something about it they hate that's why, and they're keeping the best machine. (Some expensive or hard to get part keeps breaking down, etc.)

        Unless people are talking about those terrible machines you rent from supermarkets… and if so, please don't inflict more of that rubbish on people.

        i.e. You want a decent, truck-mount (or trailer), hot water extraction machine, that super-heats water using it's own diesel powered heater.

        I had a guy do my carpets recently. He had a HWE machine, Toyota van, Honda inverter generator (20 or 2000 version). He uses your water. $170 for 90 minutes doing a small 3 bedroom home. More of a pain/might be longer if furniture still in place. Removed several marks on the carpet.

        • Aerith-Waifu on 19/09/2017 - 22:30

          Actually now you mentioned it, i know someone doing that as well and he needs a pair of working hands, i might look into this

  • [Deactivated] on 17/09/2017 - 15:53

    Buy bargain things on ozbargain and sell it again for profit.

    • Aerith-Waifu on 17/09/2017 - 16:30
      +1

      Not a long term solutions. And there are the brodens………

  • Aniseed Steed on 17/09/2017 - 16:20
    +4

    Put it all in Dogecoin.

  • orangetrain on 17/09/2017 - 16:23

    How do you know they are committed to spending $75,000? They may get cold feet, leaving you in the lurch.

    • Aerith-Waifu on 17/09/2017 - 16:31

      He is. I talked to him 3 times and he said give me something workable and you have the money next day. So yes, he is committed.

  • drprox on 17/09/2017 - 16:24

    find new ideas!

  • edwardcr on 17/09/2017 - 16:43

    Maybe an opportunity to do this in Australia?

    http://www.news.com.au/technology/innovation/inventions/app-…

    Not that I would know - but I doubt if anyone is doing it locally!

    • Aerith-Waifu on 17/09/2017 - 16:56

      I saw this article while writing some replies early this morning. I think its doable, however the cost of postage in this country is day light robbery. Unless we do it in the city of Perth. then its a different idea.

      • wittyidea3460 on 17/09/2017 - 19:49

        Why Perth? What's different about Perth?

        • follow on 17/09/2017 - 21:21

          Probs cos he lives there

        • Aerith-Waifu on 18/09/2017 - 00:33

          I am in Perth, smaller populations compares to the Eastern Estate.

  • lazybones1987 on 17/09/2017 - 16:44

    How about an online fashion/clothing store? I've had the opportunity to live in different parts of the world before settling down in Oz and I've always found Clothing to be very expensive here (amongst other things). Places like Myer offer decent quality products but sell them at eye watering prices. Places like Kmart offer too cheap and nasty products. And there are places like Target, Jay Jays, Jeans West, Tarocash, etc that aren't particularly cheap but still offer poor quality products. For the amount of money you might spend here, you would get products that are of higher quality at a fraction of the cost in Asian countries such as Hong Kong. You could import clothing from those countries and set up an online store.

    • Aerith-Waifu on 17/09/2017 - 17:01
      +2

      We pretty much ruled out clothing due to changing in fashion trends. Also sizing is a problem too, then there is the colour. If we order say 10 styles with xs, s, s, m, l, x, xl, xxl and 5 colours each. We will be lucky with 10 product range. So clothing and shoes are out for sure. But thanks for the input.

  • PVA on 17/09/2017 - 16:56

    start a burger shop in a tourist type area.

    Make out they are gourmet (cost the same as any other burger) with a fancy logo and marketing.

    • Aerith-Waifu on 17/09/2017 - 16:59

      Perth tourists are very limited, Perth city is a ghost town. Other ares like fremantle have very high rent. And tourist numbers are reducing.

      Its good you talked about marketing. With our limited capital, we can go social media marketing, but not traditional marketing.

      • PVA on 17/09/2017 - 17:09

        instagram marketing is fine, but I mean more marketing with how the store looks/feels.
        surely there's a tourist area nearby = Margaret river, broome, freemantle = maybe not perth itself.

        or a great breakfast place - fancy bacon and eggs - or more a Raw tyle food (very similar but no bacon :)) eg http://www.blendlove.com/

        Good onya for wanting to try.

        • Aerith-Waifu on 17/09/2017 - 17:13

          Thanks for your encouragement. Apart from instagram, facebook, twitter, what other forms of untraditional marketing is there?

        • PVA on 17/09/2017 - 17:23
          +1

          @house2015: I also mean marketing by the look and feel of the store itself, menus, attitude, looks it all counts.

          Dr Smythes Ye Olde Sweets Shoppe sounds better than Cheap Lollies for example

          https://delishably.com/dining-out/Best-Burger-Restaurant-Nam…

          Food trucks seem to be in at the moment, maybe you can do that and do some retail at the same time. Hey, I dont know, i'm just throwing out ideas.

        • Aerith-Waifu on 17/09/2017 - 17:24

          @PVA: And ideas and thoughts and input are all very valuable to me. Thank you again for your inputs.

  • MessyG on 17/09/2017 - 17:07

    I would start by picking an idea, preferably where you see a gap in the market, and writing a business plan to see if it's feasible. There's lots of websites around that will help you with that. I'd also suggest a short course in entrepreneurship. Arm yourself with as much information as you can before you drop all that money on something, and have a plan for if it goes belly up.

    • Aerith-Waifu on 17/09/2017 - 17:25
      +1

      Thank you for your input. My brain is working overtime at the moment. Will work harder in my sleep also:)

  • serpserpserp on 17/09/2017 - 17:10
    +1

    Oldie but a goodie, buy golf gear from the states in off peak season at massive discounts (ie. winter) and sell here in peak season for a good ol' profit. The only thing you need to manage is getting good postage. People have been doing this for about 20 years now, but if you manage it well you can make money.

    • Aerith-Waifu on 17/09/2017 - 17:29

      This is a good one for my friend, I will get him to look into it, he plays golf.

    • MessyG on 17/09/2017 - 19:06

      Second this, had a mate who did it and made a killing.

  • Aerith-Waifu on 17/09/2017 - 17:28
    +2

    Whats everyone's take on opening a healthy eating food shop combined with healthy food like air-fried chips, organic teas, gluten free sandwiches? Small shop front but high traffic area?

    • Htu08 on 17/09/2017 - 21:13

      Yes! As long as you have customers coming, you will make money.

    • GregMonarch on 19/09/2017 - 01:48

      Every 'niche' food/coffee shop like that I've seen - that offers gluten-free, special tea mixes, etc. has few customers, and either gone broke, or changes hands many times (after the owner fiddles the books somehow to make it look more profitable).

      No matter how common they are, you don't see many burger joints (in main streets anyway) go bust for a reason. i.e. You don't have to go niche… You can go mainstream, and just do it better.

      How? I have two burger shops nearby and they're both terrible. Staff wearing track suit pants and T-shirts, unshaven, no one smiles, staff talk to each other but ignore customers waiting for their food. (Not talking is fine if they can't cook and talk - just don't talk to each other while you ignore customers!) Hamburger meat is squashed super-thin because they're cheapskates and trying to make it look bigger. Even then it's often red and uncooked with a terrible taste. They always use white onions which repeat on many people, when all they have to do is buy brown! Their chairs and tables are always sticky to the touch making you feel the place isn't cleaned even though it is. (The stickiness is because they wipe with a chux and leave it to air dry - and use spray cleaners and never wash them with soap and water to remove the grease. Radio is always blaring… Metal screen door that BANGS every time someone enters/leaves… Flies in the shop. (Buy a dustbuster for goodness sake and get rid of them!) Cluttered shop counters selling all sorts of out of date bubblegum, stale cookies, dried out tiny overpriced cakes and dry KFC imitations that have sitting there all day (Rosie's Chicken I think it's called!?). And they're too expensive… Shooting themselves in the foot by making it only a grudge purchase, because people know they can get a dominos pizza for $15 that feeds 3-4 people, instead of only one. (If you're going to charge high prices, then at least make the food cooked/appetizing and clean the store.)

      • Aerith-Waifu on 19/09/2017 - 22:30

        Hmmm….. this is food for thought for sure, thanks

  • magikz on 17/09/2017 - 17:33
    +1

    Here's an idea. There's usually a print shop at/near universities to bind assignments, print, laminate, and even do the fancy thesis bindings. Many of the prices are very high. Potentially you could get the equipment cheap, set it up in your garage, and offer an express post delivery service online for it. Storefronts in my opinion are very risky. Imagine not having your business generating revenue and still having to pay the landlord hundred each week as you hemorrhage money. Try something online. Make a website. Sell products / services and so on.

    • serpserpserp on 17/09/2017 - 17:58
      +2

      Uni students are never organized and need that stuff done the hour before they hand it in, this is why those shops stay in business.

      • Fobsessive on 17/09/2017 - 21:57
        +1

        There's Officeworks printing though

        • serpserpserp on 18/09/2017 - 18:37

          Read my bit about not being organized.

        • Fobsessive on 18/09/2017 - 18:52

          @serpserpserp: Yeah but Officeworks printing vs relying on a printing delivery website for a next day deadline.

    • Aerith-Waifu on 17/09/2017 - 18:05

      Interesting. Will do some research on this one. The initial investment will be small also. Good one. Thanks

  • tamerg on 17/09/2017 - 17:59

    Have you considered buying a franchise? Checkout https://www.franchise.org.au/ for a list of franchises that subscribe to the Franchise Council's code of conduct. I went to the franchise expo earlier this year which was good to see what was on offer and talk to current franchisors and franchisees.

    As with any investment, I highly recommend getting some independent advice before parting with your hard earned cash.

    • Aerith-Waifu on 17/09/2017 - 18:06

      Thanks, I have visited the website many years ago. I will have another look, its good to see new ideas been popped up all the time also.

  • fruit on 17/09/2017 - 18:21
    +1

    Bitcoin or make a kickstarter

  • [Deactivated] on 17/09/2017 - 18:26
    +3

    Open a same sex marriage planning business, covers from A to Z, wedding ceremony, reception, honeymoon, etc.

    • fluffyd1 on 17/09/2017 - 18:46
      +1

      Beat me while I was typing! Agreed

    • Aerith-Waifu on 18/09/2017 - 00:34

      I think this might actually be very good to look into

  • fluffyd1 on 17/09/2017 - 18:45
    +1

    When working for the 'man' every job seems to be a balance between the things one hates doing and the things that keep you interested even for a little while. In my experience if a job feels like it is just for a paycheck it is hard to excel, and can be frankly a feeling I have felt ashamed to feel in the past. If you can't change how you feel at work trying something new is a courageous decision. All the more right now in Perth.

    Perhaps a service/product that addresses the jobs people hate doing (or you hated doing as a start). As others have alluded to sticking with what you know and know well but having the time, enthusiasm and funds to further it is unique and your best bet at success. You would know something better than almost all people, your unique experience, background, culture, friends whatever it may be exploit it.

    Good on you though mate, I am also a Perthie which has been quite miserable to be honest with our economic climate and last 4 months of weather which I know we just aren't used to. Finally the sun's out though and they reckon the bottom is behind us.

    Pending this postal vote maybe weddings or something up that alley, sure googling would expose a few niche areas that sleepy Perth hasn't got covered. Goodluck

    • Aerith-Waifu on 23/09/2017 - 21:30

      Thank you for your encourage words, it means a lot.

  • HeWhoKnows on 17/09/2017 - 18:45
    +1

    crytocurrencies. End

  • CandyMan on 17/09/2017 - 18:47
    +1

    Buy shares in delivery hero

  • AlanHB on 17/09/2017 - 19:11
    +3

    If I've learnt anything from Ozbargain, it's that if you rush into any financial decision, whether it be small (buying a product without checking how much it usually sells for) or large (starting a company), you're likely to be ripped off and lose money.

    Realistically I think you guys should have figured out what your business was prior to cutting off your only source of income, but as that's not an option currently I'd recommend doing something that you like, that you think there's a demand for.

    If you decide to start a business just because some person said so, rather than having a genuine passion, you'll likely hate it, even if it becomes successful.

  • centrelink on 17/09/2017 - 19:45

    Start a Blue Apron version in Australia

    • Aerith-Waifu on 18/09/2017 - 00:36

      This is the kind of business I am looking at. But in order to do this, we need a shop front as we cant sell food legally in a rented home.

  • pav on 17/09/2017 - 20:00
    +5

    I would steer clear of food type outlets. Margins are thin and fixed costs high which means you need to be doing volume to make it viable. Everyone wants to open a cafe, but most don't make any money. I would suggest starting out in B2B services. Main reasons:
    - Low upfront costs to get started
    - Low fixed costs by working from home or onsite (avoid big expenses like a shop front or office until the business is bringing in some revenue)
    - You can start prospecting/selling almost immediately
    - Can be easier/cheaper to market to local businesses than consumers
    - Higher margins than selling to consumers (sell based on value/outcomes)
    - You can tailor your service to differentiate from competitors
    - Potential for repeat business and referral

    Expect to be working hard for 2+ years to establish the business. Not required but it helps if you have an 'in' into the industry, generally experience or expertise of some sort. You might not be able to draw an income for the first 12 months. Lots of variables.

    My biggest concern reading your post is that you spend tens of thousands getting set up and the business flops (for any number of reasons). Don't let wishful thinking influence your decisions. Just because you're going all in on this, doesn't mean it's okay to make risky/stupid decisions and hope for the best.

    Businesses need all kinds of services:
    - Often a place to operate including an initial fitout
    - Plant/equipment/machinery
    - Vehicles - initial purchase/maintenance/management/servicing
    - Cleaning - windows/carpet/general
    - Insurance - building/contents/liability/workcover
    - Utilies
    - Technology - Computers/phones/printers/software/web/app/software
    - Consulting - Accounting/general/sales/marketing/branding/communication
    - Signage - Office/cars/stationary
    - Internet
    - Furniture
    - Consumables - Water/cartridges/paper/coffee/soap

    The list goes on and on. You just need to be one of these, or a sub niche of one of these. You would be surprised how much businesses spend on seemly irrelevant things.

    • magikz on 17/09/2017 - 21:55

      +1 to this response. Services are a good industry and B2B is where you know where people who have the money might be willing to pay for your solution.

    • Aerith-Waifu on 18/09/2017 - 00:43

      Thank you for your inputs dearly. Selling to B2B is something I am looking at. Only thing with food is I cant do it in a rented house. Rather a small shop front. I was in Singapore last year and there is this small shop which isnt have any chairs and tables, but they had 12 people working in the kitchen. Not only that, they were so busy doing delivery you wondering what kind of business they sell to. So B2B is something I will look at very seriously. And yes, I really do enjoy cooking also. Thanks again.

    • GregMonarch on 19/09/2017 - 01:56

      I would steer clear of food type outlets. Margins are thin and fixed costs high which means you need to be doing volume to make it viable. Everyone wants to open a cafe, but most don't make any money.

      Cafes I agree, but sorry, disagree for other types. Fish 'n chip/takeaways have a very good margin. Especially if they cut chips and batter product themselves. If they don't want all that after hours work, they can take less profit by buying nearly everything pre-made, ready to drop in the frier.

      • pav on 21/09/2017 - 10:10

        Yes I am generalising of course and food is typically high mark up as a percentage of what it costs (so that labour and fixed costs can be covered). These type of businesses do make good money when over time they have minimised fixed costs (paid down purchase of premises), built up a customer base and operate it themselves with no minimal employee expenses. My statement about volume does stand though because if OP can't achieve volume then they will begin losing money which can't be sustained for long a time as a small operator starting up.

        The thing I personally like about B2B is it is outcome orientated which as a service provider you can influence. Say your vendor for your fish and chip shop is unreliable and the quality is hit and miss. Would you be prepared to spend a bit more to deal with a company that delivers on time every day and maintains high quality? Would it be worth staying with the cheaper supplier if it means you can't operate for 10 days per year due to not having product to sell? Would it be worth staying with the cheaper supplier if customers stop coming back after a bad quality batch of product? What is the flow on impact to customer perception if they can't rely on their local fish and chippery being open when they say they'll be open?

        I've never been in the fish and chip business so I'm not saying these are real world issues, but the concept can be applied right across the B2B industry. If you can provide a superior solution and it allows your clients to focus on what they do best, they will be happy to pay a premium for it (and you don't necessarily need a lot of these clients to make good money).

  • ryban3z on 17/09/2017 - 20:31
    +2

    Before you even start a business you should probably figure out why you want to run your own business? What is important to you? What do you care about? What are you good at? What is something you do that absorbs you and time flies past?

    It may sound cheesy, but working backwards from these types of answers allows you develop a sense of an industry or business venture where you will actually be able to work hard, contribute something of value and make some money. Most businesses fail in the first couple of years. And they're bloody hard work as anyone will tell you, so what will ensure that your business venture is successful is a combination of the enjoyment you get out of the endeavour, the grit and hard work you put in and a little bit of luck!

    But if you just want ideas, then my advice is start up an information or services based business, rather than a product based business. Way less capital required. Setting up physical shops/cafes/businesses etc take up soooo much money at the start. A "consulting" type business where you provide advice or a service based on an area of expertise is much less costly. You can set up a website for less than $100 a year, use marketing automation to reach new clients and use your spare time to learn a specific skill or knowledge area where people would be willing to pay you in exchange for that advice/knowledge.

    • Aerith-Waifu on 18/09/2017 - 00:47

      But if you just want ideas, then my advice is start up an information or services based business, rather than a product based business.

      Another good piece of reading. This is something I would never thought about if I didnt post here.

      Consulting business can be very lucrative, however I dont have any set skills in order to open something like that.

      Unless I go to facebook and open a Glass Painting Class charging $150 for 10 lessons for something. This I can do. I need to get some paint and see how bad my body reacts to the Glass Painting. This could be a side income. Thanks for your input.

  • chumlee on 17/09/2017 - 20:33

    Legoland franchise

    • Aerith-Waifu on 18/09/2017 - 00:48

      Too expensive, why not just buy 500 sets and open a small shop and have kids pay to get it?

  • Trying2SaveABuck on 17/09/2017 - 20:50
    +1

    You're on a website full of people trying to not spend money probably not the customers you are trying to attract….

    If you want my honest advice good on you for chasing a dream but you really need a business plan before you 'jump' into a business

    • Aerith-Waifu on 18/09/2017 - 00:50

      Thanks. At the moment, I am at the early stages of finding what I am going to do. I am keen on the food business, whether its B2B or specialised food or food vans etc. Once I have decided on a business model. I will go into planning stages.

      • danyool on 20/09/2017 - 00:54

        Do you like gardening? There's an awesome guy in Canada who started gardening - "Urban Farming" - growing salads, vegetables, etc in front and back yards. He sold at weekend markets, but then turned mostly to selling to business, restaurants and cafes. He didn't even own the land - just rented.

        http://theurbanfarmer.co

        • Aerith-Waifu on 21/09/2017 - 02:32
          +1

          this is quiet a fresh idea. i will check it out for sure.

  • Fobsessive on 17/09/2017 - 21:18

    If you do coffee, obtain quality beans eg Campos and advertise

  • xabiso on 17/09/2017 - 21:53
    +1

    Can we start with, what do you enjoy doing most at this point in your life?

    • Aerith-Waifu on 18/09/2017 - 00:53
      +4

      At the moment, I enjoying building LEGO, Cooking, Running. And best of all, not looking at the faces of the managers I worked with.

  • Omitsukasa on 17/09/2017 - 21:56

    Would suggest no bricks and mortar with the amount of captial you have. Unless it's a really small kiosk.
    Coffee kiosks outside university libraries always make a killing.
    Maybe you can start learning about selling on Amazon and be one of the first ones to do it in Australia to try grab market share as soon as it's out.

    • Aerith-Waifu on 18/09/2017 - 00:54

      Thanks, something to think about for sure.

  • magikz on 17/09/2017 - 21:57

    If you used to paint glass, maybe you have an artistic side? Does graphic design interest you? Freelancing is a possibility as you skill up with software like Photoshop and Illustrator.

    • Aerith-Waifu on 18/09/2017 - 00:55

      I am major in arts, but that many years ago. But I am not so good with computers. Graphic design doesnt interests me much though

  • lostn on 17/09/2017 - 22:28

    Invest all in LEGO and Envelops

    You mean Eneloops right?

  • dylan345 on 17/09/2017 - 22:33
    +1

    Use money to get into more debt by getting a massive loan then use that loan to property development, then sell property/rent property and repeat. Every millionaire I know has done it this way. Then once they have money to play with they look at business investment, everyone needs a hobby, millionaires start small business.
    .

    • Aerith-Waifu on 18/09/2017 - 00:56

      dont think its going to work, and bank wont lend me the money due to my low income before

  • pulpfiction on 17/09/2017 - 23:48
    +3

    I run a consulting business that consults on exactly this topic. Are we successful? Well second year of operation and going strong with 80 odd consultants on the books (it is actually older as we spun it from another entity of mine, but that's somewhat irrelevant).

    Don't write a feasibility study. It's a waste of your time and it will be fanciful at best.

    Find something that aligns with your skills and purpose. Ideas are a dime a dozen, tenacity and execution is the differentiator.

    If you want to get serious about your business, then what is key is validating your idea/business as quickly as possible, and iterating on that validation. I recommend you read Lean Startup by Ries. We've seen people cumulatively loose tens of millions by pumping cash into a unproven ideas.

    If you just want a job where you're the boss, then go for a franchise.

    • Aerith-Waifu on 18/09/2017 - 00:58

      Thanks, noted and will check it out

  • konazz on 17/09/2017 - 23:58
    +14

    Hmmm I don't see this kind of radical thinking often, but do see lots of small businesses as part of my business - CPA accounting firm.

    Here's a few things that I've picked up
    - go into business for something you truly believe in or enjoy. The hours are long, and there are always issues. Enjoying the technical side will make running the business a little less shit overall. Its going to be crappy - trust me! I deal with staff, cash flow, marketing etc. I'm here on a Sunday night, working in bed in a hotel, as I'll be up at 6am, work all day, drive 3 hours back home, and do some more work. If I didn't enjoy seeing and helping clients, I wouldn't survive!
    - you need money. The #1 source of issues for small businesses is temporary cash flow shortages. Even an accounting firm has swings and roundabouts, e.g. June/July and January is always tight for cash. Be prepared with good cash flow projections/buffers or overdrafts. My view is you should always ask for finance when the goings are good, because once it turns south no bank will touch you!
    - some franchises are good; most are bad. Most of them you're working for someone else and carrying the risk, but some franchise models are quite good. I've seen good success from Jim's Roofing, Mr Minit, Subway but all those were people who knew the business and knew what they wanted from the business (not mega rich!). I've seen some real crappy ones, like Wendy's which has issues over winter and fixed store opening hours (shopping centre), coffee shops etc.
    - setting up a business can be expensive. Just to give you an idea, a small franchise fast food (like Grill'd) is about $600k+. Subway is a bit cheaper, as there's are mainly pre-fab but setting up a new store is about $500k
    - buying someone else's business can be good or can be bad. If its good, and the owner simply wants out, a staff member will buy it; otherwise it'll probably go to open market.
    - Find something that is hard for others to get into. it will be tough for you as well, but can be rewarding. I have a client with a stupidly expensive tattoo removal machine that essentially prints them money, as no one else can buy one of those machines (think $150k+). They were lucky to have a medical background (for NSW Health) and experience in the industry.
    - Coffee carts are easy to get into, but you're always hunting for work. Every weekend you're looking for fairs to get into, or somewhere to park up… but you never actually get a break. All you need is a few rainy weeks, and you've got trouble. The cafe2you is actually not too bad though.
    - businesses don't make money in the first couple of years!! Yes shock! I've seen families destroyed when a couple put everything into a business. Yet school fees, rent, car payments still need to be paid.
    - businesses don't get easier. It took my business partner 6 years to have her first semi-holiday (1 week after I joined the firm, and I had to run most of it) and 9 years where she didn't have to log in everyday as I had the other 50% of the firm. Now we simply face different challenges as we've grown from 2 offices to 5 offices in 3.5 years.
    - pay for a valuation. I undertook one for a gym, luckily that was only 1 suburb away - I knew about the growth that was about to stop (greenfields development had finished), a new greenfield site 6kms away (so outside the exclusive area), even though it was showing a steady/slightly growing profit, the equipment needed refreshing, revenue/member was actually dropping away, and additional members would be needed and therefore more square metres would need to be rented. A good valuation should have an honest discussion.
    - going into partnership with someone else is actually quite good, and can help with a business if BOTH parties are wanting the same goals. If both want to get really involved in the business or both view it as an investment and hire a decent manager - great… but you both have two differing goals, which will cause friction.
    - you can kiss buying a house good bye until you can show 2 years of profits!

    Thats all I can really help with, but sometimes just getting a job is better than going out and running a business. Honestly! I recently talked my client out of a business of handyman work. He was deciding between a 7am-3pm job, that was $65k + car + mobile phone or trying to run a handyman company, competing against his boss who had tied up most of the realestate agencies. We sat down and looked at it, and for him to even make his package, after the additional headache of accounting fees, marketing, etc, he'd need to have $90k+ work. And deal with quoting, book keeping etc. at night instead of playing with his kid. I sometimes miss my old 9-5pm job for that reason.

    Feel free to ask questions, as I only became partner about 14 months ago and have been dealing with this new business owner life.

    • Aerith-Waifu on 18/09/2017 - 01:16

      Thank you for your deep insights into the business world. With the money I have its really not a viable option to go into a franchise business simply because the capital we have is really small.

      What I am looking to do is doing some Niche Market, something you don't see everyday but make it good, sorry not just good, like excellent. There is this guy in Thornlie, he makes the best glutinous rice for living, he has been there around 20 years and I have been returning to his shop for 20 years. This is the sort of business I am looking into. And the shop is only maybe 10sqm if that. Working long hours are fine with me, glass painting business I did back then I worked around 60 hours a week, but that was then, now I am turning 40 soon I don't think I can do another 60 hours painting, as the smell is so bad it makes me puke just thinking about it.

      I looked at Subway, again, not enough capital as we really need alot more in order to get it going.

      What I am going to do next week is I am going to go to the same street everyday in the Victoria Park area and have a look at the business levels of different restaurants, shops, see for myself first hand how much traffic is there, that will give me a good indications on the busy times as well as the quiet times. Although I am prepared to go all in, I am not prepared to go in blind.

    • Aerith-Waifu on 18/09/2017 - 01:20

      Oh, forget to ask, how many business you know with my starting capital ending up successful?

      • konazz on 19/09/2017 - 06:40

        It can happen with that amount of capital but like you've realised the main franchises are too expensive.
        Look around, you'd be surprised what can be found. I have a client with a mobile tow bar installation business, who has wrapped up most of the used car dealerships. Minimum stock and he's net profit is close to $130k

        • Aerith-Waifu on 19/09/2017 - 22:32

          Think outside the box! Thank you!

      • konazz on 19/09/2017 - 06:42
        +1

        Another option is to get a trade. You have about 2-3 years of your income in savings, so a mature age apprentice ship might be the thing. Sure it'll take you 4 years, but then at least you'll have a marketable skill. Most of the mature age apprentices breeze through as they've actually got an idea what they're doing

        • Aerith-Waifu on 23/09/2017 - 21:48

          Thank you for that, I will have a look into that area as well.

  • AMLagonda on 18/09/2017 - 00:04
    -1

    Buy a fish and chips shop.

    Honestly they are cheap with great hours and good money if you can find the right one.

    • Aerith-Waifu on 18/09/2017 - 01:43

      Had a look around in the Perth area on this one, not much happening

  • frugalbargain on 18/09/2017 - 00:38

    I'm from melbourne and worked at Perth CBD for around two weeks, and everything seem to close so early, you can monetize of that

    a good hsp joint will be your best bet with that much money, make it close at around 3am

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