[AMA] I'm a small business owner - Ask Me Anything!

justinh93 on 10/10/2017 - 18:09
Last edited 12/10/2017 - 10:40 by 1 other user

Hi Ozbargainers!

I've noticed a few threads about starting out restaurants and other businesses, given how much this community has helped my businesses I thought I would start an AMA to see if I can help anyone who has questions about starting or running a business.

A little background: We started our business career with an e-commerce store Gameology about 5 years ago and since then, have also spent the last 2 years with ventures in the hospitality industry Pokéd. Both businesses are still in their growth phases, and continue to provide us with lessons every day.

Prior to starting the businesses, I used to be an accountant, and my business partners also come from professional backgrounds; specifically, dentistry and management consulting. My intention here is not to provide advice (financial or otherwise), but to see if any of our stories or experiences may provide an interesting perspective on a problem or question you might have.

Cheers,

Justin

Feel free to connect with us on Linkedin, we would love to see what exciting things you are up to. Justin, Sam and John

Come say hi to me in person at our new store opening in 2 weeks! Happy to talk through any ideas you may have!

Follow our lessons and see if/when we make it.

Introduce Yourself

closed Comments

  • bocca on 11/10/2017 - 19:45

    Hi Justin,

    Hope you're well mate.

    My question is around your numbers/finances/KPIs.
    With all the growth and success, do you find it easy keep up with all the facts and figures?
    Do you find it easy to forecast and make decisions for the future?

    The reason I ask is I'm in the process of setting up a reporting dashboard company with the view to help small businesses better understand their numbers. Just trying to see if there is a need for such a service.

    Cheers and congrats on the success. Poke is def the next big thing in Aus.

    Bocca

    • justinh93 on 11/10/2017 - 21:59

      Hi Bocca,

      My business partner is a management consultant and an absolute whizz with excel. We have weekly reporting which gives us all our numbers.

      I think what you are doing would be very valuable to small businesses, your biggest challenges will be integrating into the POS systems (there are hundred of them).

      Thank you once again! Hope to see you at one of our shops. :)

      Justin

    • justinh93 on 11/10/2017 - 23:39

      Ps, once you have an MVP, happy to test it out for you and give some feedback.

      • bocca on 16/10/2017 - 00:49

        Hi Justin,

        Thanks for taking the time to reply to everyone, that's a huge effort.

        Congrats, it sounds like you partnered with the perfect person. Weekly reports is definitely the way to go in this day and age. May I ask if the excel reports are automated and connected to a database?

        You are 100% right about it being difficult to integrate with different POS systems. I have partnered with a retail business consultant and we are still in the testing phase with a few differently systems.

        Cheers

        Bocca

  • Destin on 11/10/2017 - 20:04

    Hi Justin,

    Thank you for the opportunity (small business owner also), do you have a shop front or is your business online only? If yes, additional questions to follow.

    • justinh93 on 11/10/2017 - 21:53

      Hi DestinSparks,

      No worries! We have both online through a warehouse set up and retail shops through Pokéd.

      Justin

  • ozbjunkie on 11/10/2017 - 20:08
    +1

    I saw your comments on initial outlay, but didn't see anything regarding profit.

    How much does each business net per year, including your own wages? (I realise this is sensitive but you did say AMA).

    • justinh93 on 11/10/2017 - 22:12

      Hi Ozbjunkie,

      Great question.

      We net enough for us to keep doing what we are doing. Usually we aim for a 20% margin but you end up putting all if not most of that back. People definitely think we are making more money then we really are. I personally haven't taken a salary for the last years, however I am hoping by the end of this year I will be able to get a wage!

      Justin

      • ozbjunkie on 12/10/2017 - 10:43

        That's dedication. Best of luck with everything.

      • diamondd on 14/10/2017 - 19:13

        Hi Justin,

        One thing I've always wondered, when you say you haven't taken a salary for the last few years, what puts food on the table then?

        What have you got on the side?

        Thanks

  • j5ive on 11/10/2017 - 20:45

    Hi, I own a retail business and want to go harder into ecommerce. We do a fair bit already, but nothing official. Just talk through orders over messenger and such. Do you have separate stock for retail and online? Or do you manage the same stock between the two? DO you have a proper warehouse setup? What POS and what Ecommerce are you using? Who do you ship with? How many orders do you pack? How do you grow your email list? What return do you get on email outs v's social media? Do you sell on other platforms?

    Hmm, I probably have more. but thats a start :)

    • 86boy on 12/10/2017 - 10:02

      Hi j5ive,

      Non of us are tech gurus, so we started using Shopify and use it for POS and online. We use one single inventory system and we are having a new backofhouse system made customised to our needs. We ship with a combination of couriers - Fastway, AusPost, Toll.

      Tbh we have not used our email marketing to our fullest extent but usually giving kickbacks is the best way.

      We sell on eBay, but their fee sucks.

      Cheers,
      John

      • j5ive on 12/10/2017 - 21:06

        Thanks mate!

  • mattrunks on 11/10/2017 - 20:52
    +1

    Hi Justin

    a friend of mine (nickname rhymes with my first name) who is a freelance graphics designer helped design your logo for gameology and poked, she's really good at what she does, really digging that logo for poked. I still haven't had the chance to pop by and give it a try but i'm super keen to pay you guys a visit soon.

    which sort of eCommerce platform would you recommend to someone who'd like to test the waters on the cheap thats relatively cheap and easy to setup, shopify/woocommerce etc?

    • justinh93 on 11/10/2017 - 21:33

      Hi Matt,

      You are 100% correct! Patricia from Kaerus Creative has done awesome work for us and is still helping us on an ongoing basis. Please do come visit!

      Cheapest would be woocommerce, however nothing beats Shopify! I 100% recommend using Shopify to start something. We have also been exploring providing a fulfilment services to e-commerce startups so do feel free to message me when you start.

      Justin

      • mattrunks on 11/10/2017 - 22:28

        Thanks mate will defs keep that in mind.

      • mattrunks on 30/10/2017 - 18:50
        +1

        Hi Justin

        have you thought about using an SSL cert on your website? at the moment there's no encryption on the site.

  • sierra-juliet on 11/10/2017 - 21:13

    As someone who has been sick from a poke bowl in Hawaii, are you ever at all concerned about dealing with raw fish?

    • justinh93 on 11/10/2017 - 21:37

      Hi Sierra,

      Great question, the short answer is yes.

      We ensure our health and standards are really high by using the best quality fish, our salmon is from Tasmania and our tuna is MSC certified and from Queensland. Our fish is delivered fresh daily and our staff are put through rigorous training to ensure they know how to handle the product safely.

      We also have a policy where if there is any doubt we will throw out the stock. To date we have not had problems with customers getting sick from the fish (touch wood).

      Justin

  • Cheapsize on 11/10/2017 - 21:15
    +3

    Hi Justin, I literally have purchased from you twice without knowing it, love Gameology and Poke'd was delicious for lunch today. What inspired you to seek these niches and what do you look for when you think you will follow through with an idea?

    • justinh93 on 11/10/2017 - 22:10
      +2

      Hi Cheapsize,

      You are amazing! We are really grateful to you for supporting us. Please let us know if we can improve your experience in any way!

      We love the game of business and we constantly come up with new ideas. Whether we follow through usually depends on how much time we have, how good we think the idea is and how hard it is to execute.

      If you have an idea, the hardest part is starting. My first business was called Horizen education and that closed after 2.5 years. After that it has been really easy to follow through, we actually have to stop ourselves from working on too many things at the same time.

      Justin

  • polarq on 11/10/2017 - 21:48

    I see that you have used squarespace for one of the websites and shopify for the other… Now that you have used both the services, what would you recommend for an e-commerce website? Is shopify expensive to maintain? Do you have any other website suggestions?

    • justinh93 on 11/10/2017 - 22:34
      +1

      Hi Polarq,

      For an e-commerce site definitely Shopify! Its more expensive, but will be worth every penny if you don't have an IT background.

      Other platforms people use include Woocommerce with Wordpress, Magento, Bigcommerce and Neeto. I haven't really looked at any other ones.

      I think Shopify is the best by far!

      Justin

  • outlander on 11/10/2017 - 21:59

    Does it ever get too much for you, like you want to just throw your hands up and say f this, but feel as an owner you can't?
    How do you deal with that?

    • justinh93 on 11/10/2017 - 22:22
      +1

      Hi Outlander,

      This is an awesome question.

      Sometimes everything that can go wrong does go wrong, those days I want to just crawl back into bed and never leave it again.

      We have over 80 part-time staff and 10 full time staff who rely on us as an income, so we can't just give up. What I have come to realise is that everything will pass and you just have to bear it.

      My business partners and my girlfriend are all incredibly amazing and supportive so I never fall too far before I am back on my feet. I've found that the best way to deal with bad days is to surround yourself with people who you trust and who genuinely care about you.

      Justin

      • Blahness on 11/10/2017 - 22:54

        How old are you and your partners?

        • justinh93 on 11/10/2017 - 23:03
          +1

          We are between 23-29. I am 24.

        • Blahness on 11/10/2017 - 23:22
          +2

          @justinh93: that's incredible. best wishes

        • justinh93 on 11/10/2017 - 23:37
          +1

          @Blahness:

          Thank you! All the best with whatever you are doing! :)

      • outlander on 12/10/2017 - 12:06

        Do you have any special techniques, or activities that you use to blow off steam when the stress starts to mount?

  • spammingb on 11/10/2017 - 22:35

    So, how much did Scroll Icecream sell for?

    • justinh93 on 11/10/2017 - 22:36

      Hi Spammingb,

      Not as much as we had hoped for, but we wanted to focus on Pokéd which is why we sold it.

      Justin

      • serpserpserp on 14/10/2017 - 20:45

        Since we don't know how much profit you made on that business and you said that you like to think in EBITA multiples, did you make a multiple? (which was? ;) )

  • tryagain on 11/10/2017 - 22:53

    Hi Justin,

    A fellow small business owner here, although I don't have partners. Obviously, it will be somewhat situation dependent, but I am interested in whether you think it is easier to run a business with others to bounce off and keep you accountable or if it is easier to not have to consider others and be able to do your own thing.

    • samk92 on 12/10/2017 - 09:15

      Hi tryagain,

      Nice to meet a fellow small business owner.

      Justin and I have always done business with partners. I think that's partly due to our personalities (we do enjoy working with other people and bouncing ideas).

      You've captured the pros and cons of working in a partnership vs on your own pretty well. My personal view is that the partnership approach can allow you to grow faster and can increase your chances of success. BUT, this is only possible if you and your partner(s) have a very strong relationship. You need a large amount of trust. And a very thick skin to allow you to have Frank conversations.

      I would do it myself if I couldn't find someone who shared my values.

      Hope that helps.
      Sam

    • 86boy on 12/10/2017 - 10:07

      We have been working in partnerships from the start. I would imagine working as an individual would be alot more tough.
      The way I see it, the first partner you get will make it easiest (mathematically the biggest split is from 1 to 0.5; and each partner thereafter gives you less of a percentage difference).

      It also comes with a barrage of opinions and frustration when you don't see eye to eye on things, but we believe it's all part in knowing each other's strengths and utilising it to make the business work.

      None of us are a jack of all trades - we have pros and cons. The best thing to do is to keep organised and have roles assigned so accountability is still there.

  • Alfonso on 12/10/2017 - 01:49

    what was your thought process when you decided between which business to pursue - scroll v poke'd?

    Why was scroll the one left behind? Personally, I have seen many icecream joints fail as the demand for the product is seasonal.

    2nd question, you said that you worked several years without taking a salary, is this because your business is just breaking even/loss making, or is it because you have reinvested and have created equity?

    3rd question, what keeps you going? what is your end game with Poke'd - franchise model, selling the business for $$, long term business?

    Thanks!

    • Alfonso on 12/10/2017 - 19:54

      Hi I think you skipped my questions?

      • samk92 on 12/10/2017 - 21:36

        Hi Alfonso,

        Sorry for missing your questions!

        Here are my responses:
        1. Our forecast return on investment on Scroll Ice Cream was lower than our forecast for Poked. (Used an Excel model to calculate ROI).
        2. We have been fortunate that our businesses have been generating a positive return. Almost all of our profits have been reinvested, which is the main driver for the lack of personal income.
        3. The challenge of doing business and the new things I get to learn every day. We haven't figured out our end game with Poked. We're finishing off our first growth phase in the next month or two, and will reassess where the business is and work out our plan for next year.

        Let me know if you'd like me to expand on any responses.
        Sam

  • justwii on 12/10/2017 - 03:54

    I also have some great ideas about starting my own street food shop, but I also have a lot of fear: what if my food poisoned someone unknowingly, like food allergies, contaminated ingredients from suppliers? what if some haters frame my shop, like they set me up by putting dead rats in my shop or cockroaches in their dishes?

    Are you one of those optimistic shop owners who never worries any of these or you have done everything possible to protect your food business? What did you do? I don't think food business has any indemnity from the above?

    • 86boy on 12/10/2017 - 10:10

      HI justwii,
      I think all your points are valid. All legitimate fears in running a business. Every business carries risk and in the hospitality field, the reasons you listed are definitely part of them.

      However, if you were to choose another category e.g our ecommerce - what if our platform glitches? what if someone 'deletes' our website? what if we get hacked?

      There is only so much you can do to prevent these things from happening, my advice is to learn as you go and have systems in place to protect yourself as much as possible.

      John

      • justwii on 12/10/2017 - 17:42

        Are you suggesting young entrepreneurs to just go ahead and hope for the best?

        I think I am after a safety net (if it even exists) here. Sure we can help ourselves out, but what does the business sector provide to give business owners peace of mind? In case sxxx thing happens out of our control, are there any government support? What about business insurance?

        Exactly what have you done to protect your food business or type of insurance we need to purchase if you don't mind me asking?

        • samk92 on 12/10/2017 - 21:30

          Hi justwii,

          I think what John might be saying is that risks are inevitable in a business, and that's something you have to accept.
          But there are tangible things you can do to mitigate those as much as possible.

          We regularly spend time thinking about our catastrophe risks. And then we try to mitigate those as much as possible.

          Getting started is often the biggest challenge in business.

          We do have insurance (PLI and Workcover), but no income protection or anything similar.

          Yes, business can be volatile, but you have to remember that's the risk/return trade-off you are actively choosing to make when you open a small business.

          Hope that helps,
          Sam

  • JimB on 12/10/2017 - 09:37

    Congrats Guys.

    I've thought about running my own business (not necessarily retail) but a things scare me- the hours required and you can't switch off, also lack of regular income (and risk of losing money)

    I should have done it before I started a family. A bit too late to risk it now.

    Now in terms of income, based on current business growth how long would it take to earn the same income as you did when you were a employee?

    It really upset me to read that gangs would come to steal from your store. I know that you have to expect this but it's upsetting for me to read, let alone be the storeowner.

    Good luck in future.

    • 86boy on 12/10/2017 - 10:15
      +1

      Hi JB1,

      Personally, I never had a real job prior to starting these businesses so this income for myself was already a bonus.
      For Justin and Sam, I'm sure they would earn more working as an employee on a daytoday basis.
      I understand it may seem daunting but I think working co-currently with your current job is the best entry point - which is what we did with ecommerce.

      We do business because we find it fun and exciting and the end game is to increase the value through its success and hopefully that turns out to be more than what we would be paid as an employee. But if it doeesn't, it's ok - we had fun and enjoyed it in the process.

      And yes, theft sucks - but we're aren't the only victims in the world - can only live and learn from it.

      It's never too late JB1! You miss 100% of the shots you don't take.

      Cheers,
      John

      • JimB on 12/10/2017 - 10:55

        Hi John

        Yeah, I understand it's never too late, however with a Mortgage and kids in private school I can ill afford to risk my income, let alone a loss.

        Without kids and a substantial mortgage, I'd be in a very different position.

        I give it to you guys and the risks you take, but it seems to be working out well for you guys so congrats.

        • samk92 on 12/10/2017 - 12:55

          Hi JB1,

          One thing that might be worth considering is whether you can run a small business on the side after work or on the weekends.

          I understand you have responsibilities now, but there might be ideas out there that can be run on the side that could supplement your income.

          One of my favourite business people is Mohnish Pabrai. He started his first business on the weekends while working full time. Once the business became big enough, he left his job to focus on it full time. He managed to avoid a lot of the downside risks that way.

          Thanks,
          Sam

  • idonotknowwhy on 12/10/2017 - 09:53

    I saw a similar shop (I think it's called Poke Me) only accepts cards, no cash.

    I would have thought that the costs associated with accepting cash (depositing it at the bank, risk of theft, slower transaction time (giving change, old bats taking forever to get 5c coins out of their bloated purses), etc would cost more than payment processor fee from "Vistercard".

    And yet I see restaurants adding 2% surcharges for cash. I always assume they're trying to evade tax and hence encouraging cash payments.

    What are the costs like for payment processing?
    Does it really cost more to accept credit cards vs cash?
    If not, why do some places try to gouge us with surcharges?

    • 86boy on 12/10/2017 - 10:40

      It really depends on the business. I've yet to see a store that accepts no cash… cash is king!

      Payment processing is definitely around the 1-2% mark plus a transaction fee as a flagfall.

      Some may tax evade (who knows), but some just pass on the fee to the customer for the convenience of a card payment.

      So bottomline, cash will always be cheaper for us to receive.

      John

  • Sam Spade on 12/10/2017 - 11:29

    What are the best sellers at Gameology? Are you a board game enthusiast? Euros or Ameritrash?

    • justinh93 on 13/10/2017 - 07:12

      Hi Sam,

      I am definitely a Euros man, but our best sellers are the mainstream games like sushi go, catan and coup. You have to come down and check out our collection of Euro games!

      Justin

  • RolandWaites on 12/10/2017 - 12:22

    What sort of changes to taxation, if any, do you think would legitimately benefit your business and your ability to hire more employees?

    • justinh93 on 13/10/2017 - 07:18

      Hi Roland,

      This is a really interesting question that I have never thought about.

      Changes that encourage growth/expansion will mean that we will put on more team members to facilitate the growth. i.e. for each new store we open we create around 20 new jobs.

      In the UK, some of our competitors get government subsidised worldwide shipping. This means that they would be considerably more competitive than us, hence do more revenue and consequently hire more staff.

      Personally, I think it would be awesome if businesses got more concessions for exports (even though we currently don't do this), this would really help in creating more jobs and bringing more wealth back into Australia.

      Justin

  • myusername on 12/10/2017 - 12:29

    do you cook the books?

    have 3 different sets of books?

    • justinh93 on 12/10/2017 - 13:09

      Hi myusername,

      We definitely do not; it's not worth the risk and stress. It is also very hard to build a big business if you have 3 sets of books.

      Justin

    • Baysew on 13/10/2017 - 18:33
      +3

      do you cook the books?

      Nice try ATO.

      • myusername on 16/10/2017 - 11:28

        i worked for numerous small bushiness over the years as a chef and it was common knowledge that most small businesses had 3 sets of book

        • kiitos on 17/10/2017 - 08:20

          What are the 3 types? Actual takings, one for the ATO, what's the third?

  • ptl93 on 12/10/2017 - 12:34

    Hi there,
    How could you find the customers when you first started?
    In other words, what approach did you take to promote/advertise your product?

    • justinh93 on 13/10/2017 - 07:22

      HI Ptl93,

      We have used a mixture of channels.

      When we started our e-commerce business ebay helped us market our products, now it is a bit harder to use that channel as ebay is much more competitive.

      With the food businesses, social media and PR will be the best way to get word out of your opening. Otherwise local marketing is also very effective.

      Personally I think that the best form of marketing is through your customer experience, so making sure that every customer interaction with your business is a positive one is key. Go above and beyond for your customers, and don't forget the little things to let them know you care.

      Jusitn

  • rave75 on 12/10/2017 - 13:07

    Which shipping company do you use? I am planning to sell something less than $10 but shipping via AUS Post seems to be at least $7.50

    • justinh93 on 12/10/2017 - 19:59

      Hi Rave75,

      We mainly use Australia Post as they have the best coverage and service. If you need help with fulfilment I am happy to explore whether we can assist. Otherwise another courier you could look at using is e-go but the service is not as reliable as Australia Post.

      Justin

    • railspider on 14/10/2017 - 20:45

      Check out Sendle - a little cheaper than AusPost and they have a few extra services that might make your idea viable

  • [Deactivated] on 12/10/2017 - 13:46

    Will your store Gameology have a stall at PAX? If so can I have a discount code for my son :D (he will honestly buy anything that has a Penny Lane pin attached to it >.< )

    • 86boy on 12/10/2017 - 21:13
      +1

      Unfortunately not!

      We are quite busy in our move to our new warehouse.
      If you come to our warehouse and visit, definitely mention me and we'll help your son out!

      Cheers,
      John

      • [Deactivated] on 12/10/2017 - 21:23

        Thats good enough for me. Cheers!

  • Jimothy Wongingtons on 12/10/2017 - 13:57

    Hi,

    Love gameology, pretty great service online and planning to put another order through soon.

    I do a side online business selling LED lighting products - I find theres already sooooo many choices online when it comes to similar products who either have 1) insane prices or 2) have spent $$$$ on advertising or both.

    I want to look at advertising but budget doesn't really allow - what would you say is best bang for buck in terms of reach?

    • 86boy on 12/10/2017 - 21:23

      Hi Jimothy!

      Thank you for the support! We try our best to keep customers happy. LED lighting would be a tough one. It seems like you're in a very competitive market.
      Branding and making your product line stand out would be a good start.
      I personally think, it's either joining the rest in terms of pricing or forking out the $ for conversions, limited middle ground.
      Facebook advertising has worked well for us.

      Cheers,
      John

  • fomal on 12/10/2017 - 14:46

    Are you using a reward credit card to pay all of your expenses?

    If yes then how are you going to use the reward?

    If no then why not :)?

    • j5ive on 12/10/2017 - 21:08

      Not sure if its the same for these guys, but for me the wholesalers usually charge card fee and don't offer early settlement for credit card. SO often better off not paying with card.

    • 86boy on 12/10/2017 - 21:26

      We have a bookkeeper that does it all via EFT. Too much hassle with credit cards. Our expenses exceed the line of credit we get and it's too annoying to load our cards every time.
      Plus, we don't get to travel often so the points wouldn't be much use.

      What do you use your points for?

  • BRYCELICIOUS on 12/10/2017 - 16:24

    Any plans to open Scroll Ice Cream in Brisbane? We need a way to cool down up here!

    • justinh93 on 12/10/2017 - 19:42

      Hi Brycelicious!

      Unfortunately we have sold the business so it will be up to the owners!

      Justin

  • addicted on 12/10/2017 - 18:25

    Hi Justin,
    I had toyed with this idea of importing stuff and selling. However, what I find the biggest hassle is doing the right kind of packaging and sending stuff to customers. Is there a fulfillment company that you use? Who handles the packing and fulfilling stuff for you guys?
    Thanks

    • justinh93 on 12/10/2017 - 19:57
      +1

      Hi Addicted,

      At the start it is difficult to pack and send stuff out, especially if you are only getting 1 or 2 orders a day. It means constant trips to the post office for quite a small return. This changes as you get scale and your shipping cost will also drop significantly. The best change was when we moved the business out of our garage and into a warehouse, and Australia post started picking up from us directly.

      We actually offer fulfilment services for a number of small start up businesses. Please feel free to message me if you are interested in pursuing this further! Amazon will most likely provide these services when they launch in 3 months, however you will only be able to sell on their platform. We allow you to sell on all platforms including Amazon when it launches.

      Justin

  • centrelink on 12/10/2017 - 20:27

    Congrats on your success as I am envy you.

    How do you go about to find customers finding you from out of no where online.

    • justinh93 on 12/10/2017 - 20:35
      +1

      Hi Centrelink,

      Thank you, but don't envy us, join us! Start your own thing.

      First, we focus on creating a really good customer experience. This is done by ensuring you have a really good service and product. Then you tell everyone you know.

      Social media makes this much easier. You can reach out to influencers who are in your industry, but platforms like ebay allow you to get found from an early stage as long as you are competitive.

      Justin

  • T-man on 12/10/2017 - 21:24

    I am also a business owner, just asking your experience. What do you do with the customers who claim that there are one or two missing items in their package? And ask you for a refund or send them another one.

    And, what is your experience with Australia Post if they use them as your shipping carrier? They lost many parcels from my business and never pay the compensation because the parcels were not insured. Thanks.

    • justinh93 on 13/10/2017 - 07:28
      +1

      Hi T-man,

      We run a pretty tight operation with stock control and verification, a photo is taken of the contents of the box prior to dispatch and stored in case problems like this arise. This ensures that we can verify quickly whether the customer is being honest or not. We have found more often than not the customers are right and will send them whatever is missing ASAP.

      We use many different couriers and Australia post is the best due to their distribution network and the service. We have had some couriers not even attempt to deliver items to customers. With regards to lost parcels, we don't usually pay for insurance either as the compensation process is quite arduous, however we find that we only have a small % of orders with this problem.

      Justin

      • T-man on 13/10/2017 - 09:30

        Thanks for your reply. This has changed my mind to switch to another shipping carrier as I got many complaints from the customers in regard to their parcels.

        I did a similar thing with the camera recording 24h at my warehouse and I have found that a small % of the customers received their items and still claimed for the missing items. Good luck with your business!

  • khelddar on 12/10/2017 - 21:53

    Hi Justin,

    You've said you're adverse to debt, did you have any Bank lending to start any of your businesses?

    If so how much and what was Debt vs Equity when you started?

    Did you find it hard to get your first business lending facility? were you lent to just on an idea/business plan or did you have to have a minimum length of trading history?

    Last-ish one, what did you least account/overlook for that ended up having an impact from being an accountant going into business?

    • justinh93 on 13/10/2017 - 17:56

      Hi Khelddar,

      We haven't had to use any bank lending yet. We have heard of other businesses getting it off a business plan. Usually they want 2 years of trading before they will lend to you.

      We prefer not to borrow and enjoy working on tight budgets so we can ensure that our downside is minimised and we don't spend beyond our means.

      I am not sure about the last question, but the reason why I chose accounting originally was that it was my goal to get into a big 4 accounting firm from when I was in year 10. Business is different, its something we have always enjoyed.

      Justin

  • tryagain on 12/10/2017 - 23:06

    How do you fell when you are paying employees more than you are making yourself? Pretty sure most in business have been there at one stage or another, even though the perception is normally quite the opposite.

    • justinh93 on 13/10/2017 - 07:36

      Hi tryagain,

      I actually feel really good paying my employees, and it would really really stress me out if I weren't able to pay them on time. I actually love what I am doing and I think its one of the trade-offs of being a business owner, you have to be in it for the long term. If you are doing business with a short term outlook I think it would be pretty tough. We don't eat out very much, we go hiking rather than movies but we are having an awesome time! You should check out a book called Early retirement extreme (ERE) has some really interesting insights around money and spending.

      People are the most important part of our businesses, without them there would be no business. We expect high standards from team members and I genuinely believe they deserve every dollar they earn!

      Justin

  • Tech and cars on 12/10/2017 - 23:21

    I really enjoyed reading this entire thread. If you're ever in Brisbane - would love to catch up for a coffee.

    Quite a big and brave decision to do what you're doing. Well done and all the best!!

    • justinh93 on 13/10/2017 - 07:37

      Hi Tech and Cars,

      Thank you for the kind message! I don't have any plans to go to sunny brissy at the moment, but more than happy to catch up next time you are in Melbourne as well.

      Justin

  • ozeebee on 13/10/2017 - 08:31

    Hi Justin,

    I'm considering importing Australian made goods to certain countries in Asia. What do you reckon the biggest roadblocks would be for an importer? Last time I checked there is no current supplier for the goods I'm interested in.

    Cheers

    • justinh93 on 13/10/2017 - 17:00
      +1

      Hi Ozeebee,

      If you are acting as an importer of Australian goods into Asia, I think it really depends on the country. I have heard that the political landscape in asian countries have a big effect on your business.

      If there is no current supplier of the product than I think your biggest roadblock will be in marketing and in educating the customer. Unless there is already a large demand for the product you will need to spend time and money explaining to customers why they should pay for your product. You will also be paying for mistakes that come with being the first mover, whilst at the same time reaping the benefit of being the original brand that customers associate your product with. We experienced this with Scroll Ice Cream.

      Justin

  • Madic74 on 13/10/2017 - 09:57

    Hi Justin,

    Thanks for sharing your story, I am only 23 myself and hope to one day own a business of my own.

    My question is: How did you start? I have an idea that I have researched extensively but I have no experience on how to get it off the ground. What should I do first? Make the website? Get in touch with suppliers? Packaging? Marketing? ABN?

    How did you start? Where did you get your guidance from?

    Cheers

    • justinh93 on 13/10/2017 - 17:07
      +1

      Hi Madic,

      No worries! My business partner John is 23 as well.

      John and I actually started off with 2k each. We were on holidays in Thailand and came across some really cute couple pillow cases. The ones where you have the male stick figure throwing a plane and the female stick figure catching it. We spent about 1.5k on them and then stacked all our friends suitcases with these pillowcases. From there we used the remaining 2k to purchase more product from alibaba. Think jewelry and toys, then we stumbled across the board game category and have specialized in that since.

      We then used the profits/wages from that to start our food business. We haven’t really taken much money out of any of our businesses over the last 5 years as we still live with our parents.

      Steps to start:
      1. Find what you want to do
      2. Choose a name and make sure the domain is free
      3. Create a logo using Fiverr
      4. Make a cheap website yourself using wordpress or shopify
      5. Get a little bit of each product
      6. Use generic packaging
      7. Promote your product and make some sales

      This should cost you less then 2k.

      If you have made it to the end of all those steps, focus on getting up your sales! Don't worry so much about the ABN and company until you have gotten started and proven that there is a need for your product or service.

      My guidance has been from google. AMAs are also really helpful. :P

      Justin

  • MISIEK on 13/10/2017 - 15:02

    finding investors for small startups?

    • justinh93 on 13/10/2017 - 17:15

      Hi Misiek,

      There's quite a few options out there. You can apply for the incubators like angel cube or university accelerators.

      Otherwise the best way is to talk to as many people as possible.

      Justin

  • ryban3z on 13/10/2017 - 16:07

    Just came on here to say congratulations, thanks for taking time out for the AMA and MELBOURNE HIGH REPRESENTTT!!!!!!

    Great work lads, Poke'd is delicious! Can't wait for the Collins Place location to open, I work on this side of the CBD. Is there a reason you focused on the Southern Cross/Williams/Queen/King Sts side of Swanston? Cheaper rents? More office buildings?

    • justinh93 on 13/10/2017 - 17:09

      Thanks Ryan! We really appreciate your support!

      I used to work at PwC so I prefer to target the consumers that I can relate to. With regards to the location its more just what was/is available at an affordable rent. We are still on the hunt for more.

      Justin

  • brizzy on 13/10/2017 - 16:19

    truly inspiring boys! i have now been umming and aahing about starting up for a good 9 years now. Seen ideas acted upon by others but never actually jumped in as i had a tonn of excuses.. i dont have enough money .. i have zero experience in the industry..etc. ok enough ass kissing my question is
    did you guys get industry experience before you jumped in e.g did you work in a poke restaurant or ice cream parlour before you opened up shop.
    If not who showed you the ropes..store design, food prep, branding etc.

    • justinh93 on 13/10/2017 - 17:14
      +1

      Thank you for the kind words brizzy!

      As my mate John always says, you miss 100% of the shots you don't take.

      We started with under 2k and definitely had no idea about e-commerce or hospitality. The first time you dip your toe into the game of business will always be the hardest, and there is a high chance it will not be successful. I closed my first business after 2 years, but the lessons I learnt while doing it was invaluable.

      Google will become your best friend, it has solved most of the problems we have asked. The second option is trial and error, that works really well. I don't recommend hospitality due to the high capital cost, choose something that is low risk and use it as a learning experience that has the potential to earn money.

      I am more than happy to have a chat with you/have a coffee if you really want to start something.

      Justin

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