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

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)

Comments

        • @rakeycakey: The big amounts of money made has to come from someone, just make sure it's not you.

      • What do you mean house planning?

        • Sorry, I was meant to say articheture.

        • @house2015: You mean architecture?

        • @house2015: Lol i am trying to get in Design planning Architecture.

        • @house2015: would think there could be something you could do with property then - Reno, etc. (Obviously will need more funds, but maybe your parents could could go guarantor)

  • Bed time for now guys! Will pick this tomorrow! Thanks for all the night owls reading and commenting! Good night!

  • +8

    Lawn mower business.
    Easy money
    Free workout
    Few risks

    • Lawn mover business is a good idea. Thanks for sharing.

    • +6

      Lawn mower business.
      Easy money
      Free workout
      Few risks

      Get to cut other dude's grass

      • LOL

      • you get to mow other people's lawn

        • I think he prefers to cut their lunch.

    • Easy and cheap to start up, downside is you normally work big hours through summer in the heat and then in winter when the grass stops growing you are scratching for work. Can be managed but requires some thought. If you want to go down this route look at indmowing.com.au

    • lawnmowers only cost about 3 fifty

  • +43

    Hello friend,
    Permit me to inform you of my desire of going into business relationship with you. I got your contact from the International web site directory. I prayed over it and selected your name among other names due to it’s esteeming nature and the recommendations given to me as a reputable and trust worthy person I can do business with and by the recommendations I must not hesitate to confide in you for this simple and sincere business.
    We have a sum of $12,500,00 million US awaiting payment to you with your assistance.

    Sir, we are honourably seeking your assistance in the following ways.
    1) To provide a Bank account where this money would be transferred to.
    2) To serve as the guardian of this since I am a girl of 26 years.
    Moreover Sir, we are willing to offer you 15% of the sum as compensation for effort input after the successful transfer of this fund to your designate account overseas. please feel free to contact me…..

    • Oh, there's always a joker with that old gem. Congrats.

    • +8

      thanks, unless you are an Arabian Princess from middle east I am not interested………

      • Racist and Sexist… tough crowd.

        This Nigerian Prince will see himself out with his suitcases stuffed with money <tear>

  • +4

    Make sure you don't hold your funds in gold and cash. You have been warned!

    https://www.ozbargain.com.au/node/330025

    • +1

      I have insurance:)

      • +1

        Still don't hold your savings as gold or cash at home!

  • +7

    If you and your mate are going to share in the business then have an agreement done up about how to deal with what happens if there is a falling out or if one wants to exit the business.

    It seems trivial now but it can save a heap down the track.

    Good luck with everything!

    • Thanks for the advice. Need to workout many details, we talked about set up a company trust if something goes ahead. But you are right, devils in the details

      • That's not really what was said or the agreement you are looking for, as trusts are more about income splitting, not when things don't go well. What you are looking for is a shareholder agreement for a company. Don't waste your time with a cookie cutter document you fill in off a legal website, complete waste of time and money and even a lot of lawyers who don't care about the document or your business will use a 'fill in the blanks' precedent.

        Most new people won't spend the money to get a properly drafted agreement done, as at that time, everyone is best of friends and that money can be used elsewhere. Its like insurance - you don't realise how much it has saved you until you need it. Others will "do it later" when money is coming in, but by that time, what is the incentive for someone to sign such an agreement?

  • +6

    food trucks seem to be license to print money here in Brisbane. I am particularly in awe of profiteroles guys I see around, they churn through the customers like us, willing to pay $10 for 20 with a bit of fruit, jam or ice cream. I assume operating costs are relatively low.
    Previously would see food trucks only at weekends , but now such vans are popping up all over Brisbane outside workplaces during day and evening too.
    good luck

    • +1

      I was going to suggest a pop-up food biz, too. It's a great way to test different food items, profit margins, locations, how to attract viral buzz and more. It's also a cheap(er) way to test whether one wants to be in the food biz, at all.

      • +1

        Pop-up food biz is also good. It will give idea as to how the food business is ran. I do enjoy cooking. But once in the business its very different.

    • I like this idea very much. Not sure whats involved in getting a food truck, does a licence required in order to sell food in a van? Will need to do more research about this. Thanks

      • +2

        If you like food truck idea, you might enjoy the movie Chef

        • I just saw the movie this weekend, wow. Have not seen a good feel good moive for a long time. Thanks

        • @house2015: glad you enjoyed it!

  • +5

    get a vendor's license , buy bulk bottles of water, for around 9c a bottle, sell, on ice, for $3, make a killing, exercise a bonus

    • thanks, but $3 for a bottle of water?

      • just call it organic/natural/fair trade/living/conscious/enlighten water and people will open their wallet :)

        • +2

          … fat- free H2O

        • @Frugal:

          damn I knew I missed something!

          don't forget 100% sugar/cholesterol free too, "the weight lost drink" :)

          I remember reading about this some years ago, someone really liked the taste of a small local brand of "spring water", he went around to the address printed on the bottle hoping to check out the factory/office, and turns out some bloke were just filling the bottles with tap water in his backyard lol.

        • @Frugal: 100% Sugar Free, too.

        • @Frugal:

          No kidding, I actually have come across a water bottle with labels "fat free, sugar free". Im pretty sure they wanted to include "gluten free" and "vegan" too, but ran out of room.

      • It has been blessed.

      • Add some glitter, and sell it as magnesium supplements for $35 each. Easy money

        https://www.ozbargain.com.au/node/330229

  • +11

    Seems like you are more focus on money rather than satisfaction in doing something or being passionate about it. Understandable from your age perspective, but you will find it difficult to achieve success.
    What is your hobby? What do you do outside of your previous painting and retail work? What do you do on the weekend? Have you considered starting business overseas?
    Think of a business that you can see yourself putting 50-60 hours a week. Having a business partner can be a double-edge sword since there is always that weakest link aspect of life.

    • +1

      Money and satisfaction comes together. If I have to rate the job i just quit on the scale of 1 - 10 on satisfaction. Its a minus 20. So anything I do from now, I am sure it will be better than what I did.

      I dont have many hobby apart from building LEGO, I still have some rare LEGO Sets available. Not for investing, but for personal hobby, however if money does required, I will let them go. Its ok to be working 50 - 60 hours a week. I did that in my glass painting business.

      Have not considered starting a business overseas. As my capital is very limited.

      • Have not considered starting a business overseas. As my capital is very limited

        That's the point of starting a business overseas. To start a glass painting business in say Indonesia, will be a lot cheaper than here. Labour is cheaper as well. Glass painting is a unique skill which, with time and patience, can be transferred to other people. Just an idea if you want to get back into that business without having to touch the brush so-to-say.

        • Hi, took me around 12 months to get the glass painting skill to commercial level, so training others isn't really viable, however, it did cross my mind at the time. The idea of starting something overseas can be good provided if I can find a product which is relatively low to produce. Thanks for your input

        • @house2015: have you considered starting your own glass painting business? You may enjoy it if you were running the show and it would put your skills to good use.

      • are you GOOD at building Legos?

        some time ago, there were some news article about a LEGO exhibition in Sydney, they interviewed some Aussie dude who works for LEGO, and gets to travel around the world building the exhibits for them.

        • I enjoying building it, but not designing it

  • +6

    Invest in Altomic Industries. I only hear great things about it.

    • Had a look on google, still dont know what it is?

      • +2

        because the Smart money keeps it secret till it's ready to go gangbusters.

        Cross-promotional… deal mechanics… revenue streams… jargon… synergy.

        • We should touch base hi I'm AlienC of AlienC Pty Ltd Multigloboxomperation you might have noticed me from such ventures as "whizz coins to buy or not to high", "should I build a potato hut out of potatoes?" And some of my notable works such as "Summer lovin: the taste of that desert heat"

  • +1

    How much is a franchise these days?
    Saves you having to build up a reputation and allows you to just go in and work.

    • +2

      Probably the worst mistake

      • How so?

      • I thought so, too, but it depends on the franchise. Early this year a friend picked up a Cafe2Go franchise for $80K and he's still thrilled that he got in. He has his own routes, he has his own events, no competition from other franchisees, and everything is modern and easy. From preparing the coffee, ordering stock, taking payments, easy hours and easy money for what he does. The previous owner stayed on for a month to train him. He'd even recouped his investment in the first 3 months.

        • +5

          He'd even recouped his investment in the first 3 months.

          He made $80K in 3 months selling coffee?

        • @MrBear: I would like to know too:) Sounds not possible on a timeframe basis

        • @house2015:
          Reading through some of your replies, including "$3 for a bottle of water?" It suggest you seem to not be in Melbourne/Sydney but somewhere else, with very different prices.

          The thing about food shops is, it's all about the target market. If possible, could you set the scene for your business? It's very different to sell coffee in a hip area like Brunswick vs an industrial area in Brooklyn (all in Melbourne).

          Oh and for the coffee calculation. 80,000 divided by 3 months is only 27k per month, which is like 1k per day profit on average, which is like 200-300 coffees per day?
          Which I could definitely see happening….

        • @Htu08: I dont see it happening in Perth though. Least not everyday. 300 coffees a day mean close to 40 coffees a hour. Even at some really busy shops I dont think they can sell more than 40 coffees an hour. Because the busy periods are lunch time and afternoon tea time. Rest of the time just very scatted crowds. Then there is the cost of labour, insurance, materials.

        • @house2015:
          In the above example, which I believe is a coffee van, if you have good routes and work the hours yourself, I honestly think it's quite possible. 300 coffees is obviously a gross overall, if you sell sandwiches and stuff, definitely possible I think.
          Muffin + coffee/sandwiches/roll combos etc etc

        • @Htu08: not in a food van.

          cafes themselves can make that but a coffee van is unlikely even with food. hey, good on them if they are though.

        • +1

          @Htu08:

          Oh and for the coffee calculation. 80,000 divided by 3 months is only 27k per month, which is like 1k per day profit on average, which is like 200-300 coffees per day?

          You should really not get into business if you think it work this way. Just say a coffee is $5. 300 coffees = $1500 in sales. You are expecting $1000 dollar profit out of $1500 sale?

          Family friend own a fast food franchise and the average weekly sale is $25000 only $3000 of that is pure profit after all expenses. This is a take away that serve 100 people per hour at lunch. There are all sort of expense when you get into franchising. Material cost and franchising fees would be at least 50% already, then there are rent, labour fees, equipment maintenance, wastage, then not to mention ridiculous advertising and promotion that head office enforce on you.

          I highly doubt a takeaway coffee place made $80k in 3 months. To make 80K profit that would be at least $50K sale a week, that = to at least 1000 coffees a day. $80k net sale in 3 months may be, $80 profit in 3 months? Absolutely not.

        • +1

          @highdealer:
          Eh, I am not going to break it down as to why I responded the way I did. I actually am a cost accountant.

          Just note that the previous person wrote "$80,000 was recouped in 3 months".

          They didn't note if things like Labour and Depreciation as well as true restocking cost were accounted for. People are terrible when it comes to accounting for their own labour cost….

          Also don't really wanna argue.

          ^ The points I have highlighted above is reflected very heavily in the uber industry as well.

        • -1

          @Htu08:

          I actually am a cost accountant.

          No you're not, you're just talking crap or you would do the sums. No way can one person make 40 coffees an hour by themselves unless they are all espressos and he is running 3 spouts (in which case it wouldn't be $5 a shot).

          He would have to sales consistently for at least 7.5 hours straight, no taking into account driving between places on his route. He'd be working 14 hours a day easily if he had a constant supply of customers.

          Then we have to pay for the fuel (vehicle and generator), coffee, insurance, on road costs, etc, etc.

          In the famous words of Darryl Kerrigan, "Tell him he's dreaming."

          Also don't really wanna argue.

          Don't talk shit then.

        • @MrBear: okay sorry 😂

    • Expensive

  • +11

    My advice as a business owner… get a part time job. Use it to pay your monthly expenses and spend a while to determine what you want to do. What you REALLY want to do.

    This scene from The Office has been my motivational tool:

    https://www.youtube.com/watch?v=4lmW2tZP2kU

    All I have ever wanted to do is nothing; now if I want to do nothing - I can. The main reason I work for myself is so I have control over my time.

    Refer to the advice of chazfg as it is spot on!

    • Great advice. I was talking to my partner yesterday and she also indicated I would at least doing some form of casual work while I am investing or planning to use this money. At the end of the day, you have to have something coming in week after week.

    • +1

      *office space! Not the office. Absolute ripper movie

  • +18
    1. Don't start any business in any industry you have not personally worked in. E.g. don't open a coffee shop if you've never worked as a barista before. If you really want to start a business in an industry you are new to, get a part or full time job in the industry for a bit before you start.

    2. Understand that the majority of startups fail so prepare for this to happen. Your first business is likely to fail so don't put all your money into it. Not only will you lose everything, but you will have no chance of starting up another business afterwards if you want to give it another go.

    3. Write a feasability study before starting ANY business. Aim to at least break even in the first year, then profit from then onwards. Make sure you can actually achieve this. Make a budget for your business and estimate income and expenses including insurance costs, rent etc. Increase your expenses by at least 10% as a safety net to cover unexpected costs.

    4. Do a SWOT analysis. Check barriers to entry to the industry you want to enter. Make sure the market isn't already at capacity. Check out your competitors. Find out what makes them successful, but don't copy them exactly; your business should have a point of difference that attracts customers over your competitor.

    5. Sit down and think about what customer need isn't currently being met. Can you start a business to meet that need? That is true entrepreneurship. What would make your life easier if there was a company that did that successfully?

    Good luck.

    • +3

      I think this is great advice. To build on these points:

      1. I wouuld suggest starting a business in an area that you're interested / passionate about. I don't say this a thow-away "follow your dreams" statement, but due to the fact that you will be living and breathing your businesses. Therefore if you hate what you're selling, it will be as painful as working a job you hate.

      2. In addition to failure, be prepared to put in long hours. I don't know anyone who has quit their existing job and gone on to become successful WITHOUT working even harder than they did before.

    • +1

      Great piece of advice here, when you say SWOT, do you mean strength/weakness/opportunities? Whats the T stand for?

      • +2

        threats

        • Thanks for that. I will write it down.

        • +2

          @house2015: no worries, as an addition the "SW" are essentially internally focused items looking at your particular business whereas the "OT" relate to the broader external market.

  • +4

    Business and friends never work. Expect to lose either your friend or your business or both.

    Buy or lease yourself a robot that makes widgets that sell. No sick days, holidays, super etc.
    Think 3D printers.
    Think donut machines.
    Thing paper clip makers.

    I own 5 robots. All I do is push the green buttons in the morning and the red buttons when I go home.
    Occasionally one breaks down and then I have to speak to a human if I can't fix it.

    • +1

      Sounds like advance vending machines?

    • I heartily endorse this advise.

      Full disclosure: I get paid to build & program robots.

  • +10

    Smashed avocado toasted sandwich cafe that only sells coffee that takes longer to pronounce than to consume. But make sure it's as expensive as all hell and don't forget to post cryptic bullshit to instagram and have a social media presence where you tackle topical issues without research. Enforce a strict dress code of tank tops and worn out sandles coupled with hessian pants. Oh, and free wifi.

    Should go gang busters…

    • I will have to look into this. Thanks

    • GOLD JERRY!

  • +1

    Has no one suggested you extend yourself and invest in two high yield 80k sports cars? I mean you can afford one which will get you a long way, but you could get two with a bit more debt and really start raking it in from day one!

    • +11

      Yes, someone at Westpac did

  • +1

    Hate to say this but you need to get a lawyer and do a partnership agreement.

    You have x share

    He has y share

    He's investing a lot of money and it seems too good to be true.

    • Yes, already made some enquires regarding setting up a company and company trust. $4000 is the estimation we got.

      • Good. That sounds like a reasonable price.

      • +2

        I don't like the sound of paying this kind of money just for an agreement. Better spent on else.

      • Unless he's already raking it in you don't need a trust. Start with a partnership, as it's a lot cheaper.

        Of course the trust offers asset protection, but someone assessing your start up is going to insist you guarantee your bills anyway.

        • He needs asset protection for sure as he has 3 properties. I have none. So I am not all that worried at the moment

  • Is your house paid off in full?what expenses u got at the moment ?
    $56k won't really get u far but I admire u.
    Perhaps start a coffee cart at festivals and sport days etx
    Ps your friend got some investment but is he expecting the same return as u working?

    • This is a good question. I dont have a house. I was going to use the money to buy a house but bank wont give me a loan due to my low wage ($35k a year).

      My friend and I have different return expectations. For me, I am aiming to make some money or at the ability to make more than I earned before, for him, its more like investing money into a business with returns higher than bank interests. But he is willing to invest it in and work in it (part time) if all goes good. He is willing invest more if we both come up with something that will take off.

  • +1

    Honestly, many might see this as a joke, but lego investing is real. E.g. Buy a $20 set, and next year when it retires you will easily be able to sell it for at the very least $30-40. The price increases even more depending on the set. Again, many might think I'm joking but any lego collector out there knows (lego star wars is where its at).

    • +6

      Think they said something similar about stamps 40 years ago

      • +1

        Aww damnit!

      • As I said, if you were into Lego Star wars for example you would see the astronomical price increases those sets get when they retire. $20 sets selling for $40 happens every single time a set gets retired. Whether you believe me or not, it doesn't matter, but atleast do your research before making a joke.

        • Not a joke, just trying to inform. It's a bubble. As with all bubbles, there are massive profits to be made if you can time it right.

          A fact all collecters should be aware of, is that when 3d printers get cheap and good enough, lego will be rendered near worthless

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