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

    • Yes not much happening at the Perth CBD these days. WA economy is pretty bad at the moment, CBD is empty most of the time. Not like Swanston Street in Melbourne, I cant even find a seat in many of the restaurant.

      Sorry what is HSP stand for?

      • Sorry what is HSP stand for?

        Kebab shop

      • +1

        Halal Snack Pack

    • They close early probably because of state laws.

  • +1

    Honestly.. Just live frugally with what you have remaining..

    If you want solid returns but low rates there are many stock investing options.

    Otherwise don't try and reinvent the wheel unless you know you want to or that's your thing.

    Most people don't need a new fandango new gadget or mind blowing experiment they just want to keep their comfortable living at a low price so look into that.

    Anything to do with healthcare is generally very good because people become sick everyday myself right now included.

    Or as my mother used to say something to do with kids and children are generally a good thing to try and maybe make a business into.

    Toiletry is also another good option or just resell stuff if you are willing to do that okay.

    • Thanks, totally agree with the bit you said about something to do with the kids and children. There are money to be made for sure there if I can find something to offer. Question is what and would it be safe?

      • No idea man that part is up to you. If I knew the answer I honestly might be doing it now.

  • If you're in Sydney, there are no good Korean fried chicken shops… Nothing like Melbourne…
    Start a coffee shop… People seem to make decent livings with that…

    • I've read many a story of people starting coffee shops - "how hard can it be" and closing years later with nothing to show.

      Rents are huge in high traffic areas and in low traffic areas there's no sales. Setup costs are huge. Coffee is very competitive and not a sure sell if it tastes bad - and people are loyal to existing stores. It's not a sure bet.

      • prob be best with the bubble tea craze at the moment to avoid coffee shops, put a bubble tea shop near a high school. Boost juice has shown a 13 year old will spend 7 dollars on a drink if its cool.
        I mean ones in Adelaide city, normally 1-2 cute girls at front and a older chinese dude out back. cost must be pretty low for all of those $6 drinks.

        • I have emailed a few well know brands in this area, our capital is short by 100k. $250k is what you need to open one of those.

      • yeah.. I guess you still need some business acumen..

    • I am in Perth, we have quiet a few of the Korean ones and they all taste great:)

    • I own a Korean fried chicken shop in Melbourne. It's been operating for almost two years and we're still a long way off from paying off our investment. As others have mentioned, there are a lot of costs, staffing issues, long hours, etc. It's hard work and not as glamorous as it may appear to be.

      • That's pretty interesting.. I have no idea how difficult it is to pay off an investment like that. Do you make a better than average wage that will increase once you pay off the investment?

        • Made absolutely no money. Sold the business for $1 and lost a few hundred thou.

          • +2

            @cabelng: Well that sucks after 5 years of hard work. Sorry to hear that. Was it the current downturn that was the final nail or tough climb all the way through?

  • Have a look here, https://www.gumtree.com.au/s-business-for-sale/perth/c18468l... and see if you like the look of anything, If you haven't even got an idea of what you would like to do then it will likely take a fair while before you would start making any money and you will likely burn through most of your capital before you get there.
    By the sounds of it, you and your friend are probably suited to different businesses. Without a big idea, specialised skills or experience to call on, you are probably best suited to a service based industry which will mainly reward you for your time, it's probably unlikely to pay the bigger returns your friend would be wanting to take the risk for.
    Not having your heart set on any one type of business can be a strength when buying, it allows you to shop more for value and opportunity. Just like anything though you really need to do your homework before forking out your money. Anything already making good money is probably going to be out of your price range so look for something where you can see an opportunity to do something better than the sellers have already been doing or refocus the business in a way that will be more profitable.

    • Thanks for that. This is good touching base. I have not yet set on one as I want to have a look whats around. At the moment, I am keep on the food outlets (small shop), also service based industry, and finally, look for some niche items not widely available in Australia. Return on these can be good if well managed, yet initial investment isnt too high also.

  • Speculate on 1 bitcoin to hedge your bets.

    • Good if you have spare cash, not good if all you have is non spare cash

  • Hi OP, what do you think of running a "Meals on Wheels" Businesses?

    • This is one of the ideas I am looking into:)

      • There is an aging population, there is money in there :)

  • be an instagram model

    • Yeah. a 40 year old ugly man will get lots of hits for sure:) lol

  • +1

    I think you are quite a few steps away from where you need to be. You need to obtain both a high prospect idea (and I'm not sure OzBargain posters are the best source and I'm not sure they'd give away good ideas for fee even if they were), and you need a significant boost to your understanding of what it takes to run a successful business.

    I'm sure I overthink things which causes inertia sometimes but…jeez mate I really think this is undercooked.

    • Yes, I agree also. I have ran a glass painting business before and its very good, only had to close it down due to the fumes. So I do have a good understanding how is a business run. And I give excellent customer service as many many customers are overseas customers coming back to me everytime they visit.

      • Okay well that gives me a bit more comfort. Good luck.

      • Couldn't you set up a ventilation system that would get rid of the fumes? If that's the only reason you don't want to do it, and it's something your good at and it sounds niche, maybe you should look into making it work.

        • I can but its been years since i picked up a brush, I think if I were to go back I have to find something to get rid of the fumes, but i honestly dont want to deal with that again.

  • +2

    My suggestion is to get a new job. Running a small business sucks shit, you don't have much money, you don't have any passion, and so I don't think it's going to go far.

    I'm an expert in my field and tried to give it a go. What a waste. I also know others who meander around a graveyard of little ideas that go nowhere. The difference is that I then got a job, they kept going until they have nothing. Don't be those people.

    You know what? Even if every single job in your industry was awful for some reason (like legal or something) then get a job you can live with whether it's flipping burgers or whatever.

    • +3

      Actually, just got an offer today to move me into Casual role with bonus elements attached, which was not available before:)
      So by making backing myself into a corner, I am already making small progress:)

  • start a Small businesss…….start a Chatime booth….good franchise…great premium pearl milk tea….=)

    • High franchise costs. Otherwise its ok to go into

  • +1

    Start a for-profit sausage sizzle wagon.. I have no idea what level of investment this would require or returns this business would bring, but I feel my access to a snag in bread shouldn't be restricted to Bunnings visits.

    • $50k should do it on this one. I am looking into it as we speak

  • don't think running your own business or being your own boss is that rosy, at the end of the day, your returns will most likely be less than if you were a salary employee, but you will have to endure a lot more stress and long hours. Why not just work (as an employee) in an industry you actually enjoy, instead of throwing away your life savings? Close to 2/3 small businesses fail within the first 3 years, do you want to be another statistic? Not trying to be a pessimist, just stating the facts. You won't just lose your initial capital, but most likely you'll end up in large debt at the end of the journey.

    • Totally agree, I think I putting in around 60 hours a week when I had the glass painting business, and the best thing is, time goes really quick. 60 hours seems not so bad at all. So no, no way i would think business are easily ran.

  • +2

    I will just write about what I need someone to be doing in the market. It would be cool if you made an app on Google Play/App Store and start taking odd jobs on that. They can be something like I want food from a restaurant that doesn't deliver to I want a specific list of items from Bunnings or IKEA. Furthermore, you can charge a fee which is based on fuel and your time. Another idea would be something similar to Blue Apron in the US. But instead of their business model, you could hire or learn cooking and deliver meals to people regularly everyday. I as a student wouldn't mind paying around 150$ ish a week for daily meals. At least one complete meal a day. Theres more stuff but I cant recall yet.

    • I have been looking into their business model since someone mentioned it yesterday. Only problem I think is where can I cook all these items without a shop front? Doing it from rental place is not a good idea. And dont you need a food license in order to sell food?

      • You are not opening a shop, you can cook in your home as far as I am concerned. You will need to look into the food license and ABN etc. The main things will be the app or website. You can first try with your close friends and family and then see how it progresses.

        • I will find out more about cooking from home and sell commercially for sure.

  • +2

    Since you are on OZBargain, I give you a FREE advice: Personal shopper. I mean, we here on OZbargain have a great feel for what is good value, and if I look at the customers going to HN and paying the full price, I believe there is space for some-one knowing where to buy. You save them 20% and cash in on 10%, Still saves them 10%,

    • +1

      I did personal shopper as a side thing 2 years ago, only problem is when the customer saw the receipt, they are not happy I charged them 7%, but its odd that they dont feel bad that I saved them 15% or more. So no, never again.

      • That is something I was wondering about, how would the customer see the "price hike"
        How much were you able to make as a side thing?

  • +4

    If you haven't already, give the WA Government's Small Business Development Corporation a call. They're funded to provide advice to small businesses and will be able to help you answer a lot of common questions. They've got accountants, lawyers, marketing people - I used to do a bit of work with them and it's definitely the first place I'd go in your situation.

    edit: most of what they do is either free or low cost (eg $10 for a workshop) too

    https://www.smallbusiness.wa.gov.au/

    • Thank you, I am going to give them a call and see if they can help me.

  • Cleaning business/ Gardening Business.

    • Looking into some franchise on this one as we speak

      • I don't have much knowledge about a franchise, but personally, I would not go for the franchise. I would start up one of my own and do some good marketing. I am sure you must have contacts to get the ball rolling. My friend started a cleaning business from $15k, and he is making a good living these days. So either of business above won't break you, and if you do the marketing right, you can make a decent money too. Remeber, winning contracts is the key.

  • +1

    The only right answer is:

    What are you interested in - or better - what are you passionate about?
    Go into business doing something you love or at least like!

    If you invest your limited resources - time and money - into something you aren't passionate about you will fail
    You had a job making you money - you hated it
    Your mate has a good job making good money - he doesn't like it
    Without passion (or a whole lot of dumb luck) you will fall at every hurdle

    Sure open a food business as suggested
    but if you aren't in love with your product and passionate about customer service - kiss your nest egg goodbye
    have you ever been to a restaurant/cafe/whatever and had bad service - did you go back?

    Find something you like doing then find a way to get paid doing it

    And don't rush it
    Get a menial part-time job to make ends meet while you work it out
    Or better find a similar job to your last but with a better workplace

    Highly recommended reading
    Tim Ferris Books - particularly The Four Hour Work Week

    • +1

      Thanks, noted. I will truly look for something i enjoy, dont want to stuck in another loop hole where I dont get any pleasure from it.

  • Some posts are unbelievable! LOL

    • +1

      Is this one one of those?

  • +2

    wake up at 4am. travel around to grocery stores right when they open and buy every tin of baby food on the shelves and ship them to china… repeat daily with different chinese contacts.
    u will be in a Lamborghini within a year.

    • I actually visited some lobster farm in WA, problem is lobster needs to be alive when arrive in China and the inspections in China are tough (If you know the people working at the customs, otherwise, no chance)

  • Open an AusPost franchise

    • Also made enquiry about this as well as lotto agent, again, starting capital is very high. $500k should do it. Not $130k

      • Fastway franchise then.

        • A friend's husband is going it. Not enough money he reckons.

        • @house2015: I have an idea that I couldn't work on, maybe I can PM or email you

        • @3zzy: Please do:) Thanks

      • Lotto returns are very poor.

  • +6

    I was in a similar position some years ago. Desperate to get out of a career I hated.

    Started a business in an industry I knew nothing about but I felt confident because the product was good.

    Big mistake. Lost EVERYTHING, and let me tell you, you have never known such misery until you have lost everything in a business.

    It is crushing, you look back and think "How could I have been so stupid?" "Why didn't I …..".

    Think of your worst relationship breakup and multiply it by 10

    If you start a business, do it in something you know…and even then cautiously.

    You need to know marketing, sales, inventory, customer relations, book keeping….the list goes on.

    Even if you have all those skills your still basically rolling the dice.

    • Sorry to hear, is it possible to share what business you were in and how much you lost? I have $56000 and I dont have any other assets. So to me, the most I will lose if all goes belly up is $56000. But if I succeed. The rewards are well worth it

      • +1

        Actually no. You lose more that 56K or your capital as your business will also incur debts and those are the ones going to bite you in the bum. These are on top of what you lose in terms of faith in humanity, confidence, families.

        THe pro side is that of failing is that at that time you'll get to know whose your real friends and families are i.e. your families aren't necessary those that are related to you….some will go all the way help you out but aren't related to you at all.

    • +2

      herbalife?

    • +2

      Please take his advice and experience VERY seriously. His experience is the rule, not the exception. If your 'main' reason to do this is to escape a bad situation, I'm afraid this is not a promising start. Try to find something that drives you. Something you think you can do better.
      I wish you success!

    • Good and real advice.


      Op, a good start is to read the E-Myth. Draw up an org chart and initially put your name in all the boxes until (if you can ever) hire the right people for each box. Reckon you can cope?

      • Good advice. E-myth is still totes relevant but cripes it's long winded, find an abridged version.

    • Sorry to hear this, I have also witnessed several friends/family fail at their own businesses; generally this was from outside left field issues out of their control. eg. brought a party store, made medium returns, then local BigW nearby opened a Party store inhouse…

      What I've learnt is you have to be prepared to work hard and constantly at it, also you have to be prepared to fail at it and start again.

      Also as stated, you have to be educated, you may think you can just pay an accountant etc but if you have no fundamental knowledge of finances, employment, marketing & sales, you are leaving yourself exposed.

      At the end of the day, just remember if it was easy everyone would be doing it. Don't stop chasing your dream, just be grounded and realistic around what is required.

  • Just a quick thought on the POLL I set up, honestly did not think:

    'You are mad' would get so many up vote.

    • Why didn't you keep an option "Yea, you are doing the right thing."? I would have voted for it.

  • gigolo?

    • Ugly 40 year old man have a market these days?

      • +1

        Always a market, just depends on the price for some.

        • You mean someone like JetLI will have a market? (Wink Wink)

        • You mean the Op pays to provide his service?

  • A friend of mine is making $500,000 from trading cryptocurrency
    His initial investment was around $25,000
    But I'm not sure if this will work again now as I believe the market has reached its peak, more likely the price will go down

    • Hi, $500k or $50k? If its $500k then he is a legend!

      • He is indeed a legend lol
        $500k within less than a year, google bitcoin and ethereum but I think the boom is over now
        So he bought bitcoin for less than $500 each last year and ethereum at $7 each January this year
        He sold bitcoin around $4500 each and ethereum for almost $400 each several days ago
        He quitted trading

        • He invested in Google and Amazon as well

        • That's really impressive, I wish I can go into shares/cryptocurrency without the fear of losing everything :)

  • a mobile car detailing business?

  • +3

    I'm 32 and I quit the job I hated in January. I started my own business doing eyelash extensions. I'm not very into the beauty industry but I really enjoy the little detailed work.
    I actually LOVE what I do right now and even though I'm still starting up and business is slowly picking up, I couldn't be happier. Had to tighten the bolts on spending but I left my job with 14 weeks annual leave and a some spare savings to hold me down.
    It helped that the CEO of my previous company (he changed jobs a couple months after me) called me into his new workplace to do some contracting work for him in my down time, so I've been very lucky.
    But good on you! I hope you figure out what you want. Like you, I quit my job and THEN thought about what I wanted to do. Not the greatest plan…but I took a chance, did the course and look where I am now…in a field I don't hold to close to my heart but LOVING what I actually do.
    Goodluck on your adventure!

    • Is there any word like quitted? Like, 'I quitted the job I hated in January.'. Not being sarcastic just asking. I can't read with word quit.

    • Great example of doing processes you love, coz that IS the biz. See comment I made for more on this.

    • Thanks and best of all to you

  • +1

    You said "you're going back into business". What business were you in previously? And what happened to it?

  • I opened a cryptocurrency mining mine in Sydney, pretty good return rate, you can consider to put some machine here. :)

  • 2 words: genesis mining.. thank me with bitcoin.

  • +2

    Scalability - sell one then sell one million
    Equity - make sure you own the business and stop making other people's dreams come true
    Partnership - share the journey, risk and reward. Two brains are better than one
    Passion - do something you love to do

    Good luck

    • Thanks for that. 4 very important criterias

  • Give me and I will set up a tiny game studio overseas(Dhaka), staffs are super cheap over there and make Epic Games!

    • I dont think setting up workshop overseas without knowing the laws around that country will be a good idea

  • What a silly idea

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