Thread: Opinions sought

Originally Posted by MathewA

Been looking at a few shops and I have to say being offered insuliting wages between 15 and 19 an hour make me think I'd rather work at 7/11.

So Mat, when you open, I'm assuming you won't be paying 'insulting' wages so can I apply for a position please.

Take up Surfing.

Yes Matthew I have several thousand opinions, all of them are free. On this have no opinion that is worthy.

Pros and cons to both Mat, buy one all ready in business and you get the gear without having to set it up yourself, which means less down time at the start etc. BUT you also buy the previous blokes reputation, good or bad, which can be hard to change. However, an existing business may have an established clientelle (sp?) that you will have to build with a new business. I think I would go with the established business but do a bit of research about the rep of the place you are looking at.

Dan

I lean toward setting up a fresh & then maybe aquire some business from others along the way.

I have bought work from other businesses, taken over work from other businesses when they had more than they could or wanted to do. I have pinched work from other businesses by providing better/faster service.

Just don't sink yourself into a debt thaqt you can't service while you are starting up. Don't uy/hire/lease all the flash murry stuff before you have a means to make the payments & eat.
Don't splurge & waste money on advertising either, do your homework & make every cent you spend on it pay. If/when you get up & going & have a rep, all that you will need is a yellow pages advert & word of mouth. In the mean time, you will get better value for money out of putting your own time (while you are waiting for the orders) into personally meetting people. "Networking" is the buzzword. Go armed with business cards & your charm & meet as many people as you can.

Go for it.

Originally Posted by Cliff Rogers

"Networking" is the buzzword.

Networking!! Is that web browsing?? I got fired for that!!

If you want to open your own business, great do it.

I think there would be better value for money in buying an ongoing business. Same reasons as Dan stated. Whilst the current reputation goodwill call it what you will is part of that business, a pretty smart advertising campaign on startup can turn around a run down business, which can be bought for less money.

I think advertising is paramount, particularly in the early stages.

Cliff made a sound call when he said to be careful and not get in over your head. Banks will happily lend more money than you can ever pay back.

Have a chat with Centre Link. There is a program designed to help setting up a new business. It includes training and mentoring, and huge tax breaks. A mate of mine went through it and while it sounded too good to be true going into it, it proved to be as good as it sounded.

Find yourself a niche and work into it Andrew. Perhaps your Canadian background (you are the Canadian aren't you?) will give you some angle you can use to make you stand out from the others.

Cheers
Richard

Hi Mat

Rule #1: Do your homework.
Rule #2: Get a good accountant to check your homework.
Rule #3: Recognise that your enthusiasm and eagerness for your own business will blind you to the problems you discover in Rule #1 and make you frustrated with the advice you get in #2.

Do something that you know well. Are you thinking about the furniture business or something related?

The advantages of buying an existing business or franchise is that you get many of the kinks already worked out (but not all). Some might say that there is also an immediate income from this approach, but I can tell you that this is not so. 12 months down the track and I am still waiting for my wife's (bought) to make one cent! (And the numbers were solid beforehand, I can assure you).

The disadvantage of buying is the cost involved: can you sustain the debt/outlay/loan?

A new business - bought or from scratch - usually takes about 2 years (an average figure I have been given) before it makes money. I say this not to scare you, but to emphasize the need to plan and budget wisely (good points raised by Cliff). Most new businesses fail in the first few years.

Having said all this, there is nothing like a new venture (adventure?) to set the heart racing! Life should be about taking some risks, testing one's mettle. Don't look back when it is too late (is it ever too late? My 80-year-old mother sold her antique business two years ago, then started a new life as a consultant, and not as a hobby either).

Lastly, maintain an orderly mind about the structure of your venture. All the facts and figures. Get the accountant to help you lay this out with all the projections of costs and profits (you do plan for those, don't you ). This is going to be necessary to sell the affair to your bank manager.

I hope this helps a little.

Regards from Perth

Derek

Originally Posted by Cliff Rogers

Don't splurge & waste money on advertising either, do your homework & make every cent you spend on it pay. If/when you get up & going & have a rep, all that you will need is a yellow pages advert & word of mouth. .

Ive been in business for myself for over 7 years now and i cut out yellow pages advertising after 3 years. not once did the yellow pages ad pay its way, let alone make a profit for me. Good reputation and word of mouth has worked a lot better for me.

Originally Posted by outback

Whilst the current reputation goodwill call it what you will is part of that business, a pretty smart advertising campaign on startup can turn around a run down business, which can be bought for less money.

A friend of mine recently purchased a "Hire a Hubby" handtman franchise norht of brisbane. The previous franchisee had let the business get a bit tired in recent times. After purchase my friend spent a lot of time doing letter box drops, going and meeting real estate agencies (rental repair work) and meeting all of the local trade supply shops. Now 12 months later he is doing fairly well for himself. Still not making lots of cash because he is spending a lot on new tools.

MathewA, have a go at it, wish you the best of luck.

Originally Posted by doug the slug

Ive been in business for myself for over 7 years now and i cut out yellow pages advertising after 3 years. not once did the yellow pages ad pay its way, let alone make a profit for me. Good reputation and word of mouth has worked a lot better for me.

The Yellow Page's are a waste of time and money. The day's of advertising in Yellow pages are over, with now, so many different avenue's of promoting your business. The like's of Telstra, The Trading Post and the Yellow Pages, all became too greedy with their pricing, and are now all happily being devoured by the ever faithfull beast "Competition"! ......................and yes I am speaking from experience with the Yellow Pages..................and Trading Post..........and Telstra....well are'nt we all.

rant off!

Originally Posted by Gumby

So Mat, when you open, I'm assuming you won't be paying 'insulting' wages so can I apply for a position please.

Sure! But you can't wear that hat

Matthew A.

I am surprised that a qualified tradesman is being offered "insulting" wages. You must be looking in the wrong places.

There is a huge shortage of tradespersons in this country and lots of well paid work available. You have to be prepared to go to the work.

Statistically, something like 75% of all new businesses go broke in the 1st 12 months. Think long and hard about that option.