Advice in Starting New Business

Lithara on 12/01/2020 - 16:37
Last edited 12/01/2020 - 16:38

Hello all,
Need an advice for starting small business.
Haven’t decided yet what to start preety hard!
Was looking to buy existing kids playcentres and was wondering as a newbie what are the things i should be looking into consideration when buying an existing business. So far I could think of following please guide me if I m missing out in caculations or any suggestions will be helpful.
@ Budget: 200k - 300k
@ 5+ years Retail experience

  • wages
  • Rent
  • Franchise fee(if any)
  • Asking price of current business
  • Bookkeeper fees
  • Electricity/ water bill
  • Dont know what are the fees involve in running business a/c and fees associated with it
    Thanks for you time🙏
Financial

closed Comments

  • MS Paint on 12/01/2020 - 16:55
    +1

    A commercial lease generally involves you paying all the outgoings. Research this too.

  • [Deactivated] on 12/01/2020 - 17:01
    +1

    Marketing
    Insurance/indemnity
    WorkCover
    Superannuation
    Building upkeep
    Equipment upkeep

  • tightpike on 12/01/2020 - 17:01

    But if a confusing post. Are buying an existing business or starting a new business?

    • hoey888 on 12/01/2020 - 19:06

      Why not look for inspiration from Dragons Den/Shark Tank? You can view episodes online from YouTube.

  • ihbh on 12/01/2020 - 17:12
    +5

    5+ years Retail experience
    Was looking to buy existing kids playcentres

    Why don't you get a job in a kids play centre or a year or so and see first hand for yourself? Work your way up so you can manage one successfully before taking the plunge and buying one yourself. You'll have a better idea of what to pay afterwards based on payback period (if you don't understand financial metrics such as IRR, etc.).

    • brad1-8tsi on 13/01/2020 - 11:28
      +1

      My old boss did this when he wanted to open a discount tyre store. He went to work at the busiest tyre store in Sydney. Volunteered for every job, volunteered to be manager on weekends, asked lots of questions, got to know all the sales reps from the tyre companies. After 12 months he resigned and started his own shop with a similar business model. He did very well for himself.

  • t_c on 12/01/2020 - 17:21
    +10

    ithara
    Member Since
    48 min ago

  • TheMindsetTraveller on 12/01/2020 - 17:34
    -4

    If the world gave you $10 million dollars right now, would you open a child care centre tomorrow? If you still would, go for it. If not, then don't do it. You don't have to answer that publicly, the honest truth is what you think about yourself, when you're by yourself.

  • Hithere on 12/01/2020 - 17:43
    +4

    Get yourself a business plan.

    A good accountant to check out the books before you buy is essential.

    More than 60 per cent of small businesses in Australia close within their first three years.

  • Typical16-bitEnjoyer on 12/01/2020 - 18:42

    Have you even drawn up a business plan? If not, start there.

    If you don't know how to, or can't be bothered, then don't buy/establish a business.

    • Third_Gear on 12/01/2020 - 22:06

      Don’t always need a business plan; I’ve never used one and I’ve done alright.

      • [Deactivated] on 12/01/2020 - 22:31
        +1

        You're the exception then , not the rule. Next you'll be telling us that you don't have a Vision, Mission and Values statement for your business? IMHO, if something's worth doing , it's worth doing well.

        How do you even get finance without a business plan?

        • Third_Gear on 13/01/2020 - 21:23

          No I don’t have those either and own multiple companies plus keep myself busy with various consulting services. I’ve never needed finance… bought one item and sold two rinse and repeat tens of thousands of times. You are 100% correct in that I am an exception and not the rule. Thank F I never followed the rules because if I did I’d still be working in a normal 9-5 job.

          • Typical16-bitEnjoyer on 14/01/2020 - 12:29

            @Third_Gear: You're the exception because it sounds like you're not even an actual business.

            You're just a consultant who uses a company structure to reduce your liability.

            OP needs to draw up a business plan. Otherwise they risk blowing their 200k and finding they don't have to cashflow to pay their rent within 2 months, getting kicked out on their asses and wondering why it all went so wrong.

            • Third_Gear on 14/01/2020 - 15:17

              @Typical16-bitEnjoyer: I own three e-commerce companies and use my experience and contacts I’ve made to help fellow business owners with logistics and various other bits and pieces. I also offer 3PL to small businesses in Melbourne who are a tad to small for the big companies but just need a bit of help getting started. Google Third Gear and follow the trail….

              • Typical16-bitEnjoyer on 14/01/2020 - 18:36
                +1

                @Third_Gear: Stop attempting to dickwag. Your "companies" consist of….3-4 people? Some entities aren't even registered for GST through a fixed unit trust. Exactly my original point and it still stands.

                It is absolutely clear from OP's post they need to draw up a business plan and due their due diligence. Otherwise they'll end up as yet another addition to the statistic of failed businesses within 2 years. Not that you appear to care, whereas many of us are giving OP points to consider before laying down their life savings…

                • Third_Gear on 14/01/2020 - 19:31

                  @Typical16-bitEnjoyer: People ask questions and make points so I reply. Nothing more nothing less. Not even sure what your original point is but it doesnt even matter as no one wins arguments on forums.

                  OP has heaps of advice from various random people they don’t know so I’m sure it is all quite helpful. Well here is my advice: Don’t do it.

                  • Typical16-bitEnjoyer on 14/01/2020 - 20:25

                    @Third_Gear:

                    People ask questions and make points so I reply.

                    And I'm perfectly entitled to comment that your "advice", in your reply to my post, is utter stupidity. Move along.

      • Some Guy on 13/01/2020 - 12:48
        +1

        My grandfather smoked liked a chimney for decades and he did not die of a cancer-related illness.

  • Ocker on 12/01/2020 - 19:18
    +4

    Do not buy any type of business of which you have no first hand experience.

  • HighAndDry on 12/01/2020 - 21:09
    +1

    kids playcentres

    Licensing and liability insurance premiums.

  • netjock on 12/01/2020 - 21:22

    Contact franchise owners association or something like that to get a check list (https://www.franchise.org.au/)

    I'd be reading a lot of contracts.

    1. Franchise contract
    2. Lease contract
    3. Business sales contract

    If you don't understand anything ask. You need to know it back to front. The costs and risks start coming out and you need to draw a list.

    Don't start a business or buy a business unless you know all the costs and how it makes money.

    Franchise isn't paying a fee and someone will feed you the fish and you just have to turn up 9 - 5 as we know from the news about Domino's and RFG scandal.

  • whooah1979 on 13/01/2020 - 01:30
    +1

    Franchise

    Don't do it.

  • brad1-8tsi on 13/01/2020 - 11:30
    +3

    Working with children licence(s)
    Wages for staff
    Budget for refurbishment.
    Insurance

    • [Deactivated] on 13/01/2020 - 15:55

      police checks.

      • brad1-8tsi on 14/01/2020 - 08:02
        +1

        I think that would be part of the WWC permit (in NSW). When I was helping Run Miranda RSL Youth Club (they do trampoline & karate) it was just the WWC that I needed. There wasn't a separate police check.

        My daughter still works there as their Advanced Coach and it's just the WWC.

        It's actually a really simple form and I'm not sure how deeply it looks into your background.

        OzBargain tip: If your business is not-for-profit the WWC is free (it was when I had mine).

        Thinking about those play centres, they always have a cafe to feed the cows so food handling certification and anything else food related for that level of food service.

        • [Deactivated] on 14/01/2020 - 14:17
          +2

          Could be different in Vic. I needed both the wwcc and a police check when I was volunteering with children with special needs. The wwcc was free for volunteers and tax-deductible for employees, if I remember correctly.
          I was also required to have a level 2 first aid (and epilepsy and seizure management training). Can't remember who paid for those.

          Op, we're just having a guess here. You really need to do your own due diligence.

  • monkeybusiness on 14/01/2020 - 22:40

    If you haven't even got a idea what you want to get into and know what is involved then maybe you shouldn't get into business especially a small business.

    You really need to know the ins and outs of that industry to be able to run it effectively.

  • Hithere on 15/01/2020 - 13:38

    Looks like OP is a 1 post wonder, asked for advice and although they've logged on since their initial post hasn't bothered to reply to any of the good advice offered by forum members.

    Maybe they didn't get the advice they wanted? :(

  • ithara on 15/01/2020 - 22:24
    +1

    Thank you all for your valuable time.

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