Looking to start your own business?

[tige19]

Tell me what you guys think about this!

I was reading an interview about an entrepreneur who basically created his wealth via understanding consumer needs. He said the quickest way to go broke was to try and re-create the wheel, or in another sense try and do something new. His best piece of advise is to do what's hot and follow someone's else's great idea, if you can continue to do this and understand market trends you will be very successful.

Whilst I believe in the way I operate and how things need to be structured, there is just to many people trying to break through with new and innovative ideas that ultimately fail. I thought that was some sound advice for any buddying entrepreneurs out there.

 

[Troubadour]

Watch out for personal guarantees for directors that can leave you personally liable for far more than you ever thought (if things go south) and subject to summary judgement for 15 years - you hope for the best but plan for the worst.

Have an exit plan just in case.

Have an appropriate holding structure in place - Pty Ltd with Trust (Family/Discretionary/Hybrid).

Consider holding structure for any other current assets you may have - house, shares etc - to attempt to silo these assets.

Look into government grants that may be available for small business start ups or for hiring non skilled employees

 

[checkraiseulite]

Yes, as noted above you need to chat to a solicitor about asset protection as well as about reviewing the lease.

I'm not an asset protection solicitor but I think you should set up a discretionary trust (with a corporate trustee) to hold the company. You should be the sole shareholder and director/Secretary in the trustee company.

The assets you hold now should be in your wife's name and she should not be signing any personal guarantees for the finance or the lease.

 

[BNE23]

I am just about to sign a lease on a premises for a 24/7 fitness facility in a suburb an hour from Melbourne on the beach. 21k population, 1 competitor and only 30k rent for a 311 m2 space. My break even is around 200 members on DD, my outgoings are minimal as myself and my partner are giving away our careers and will dedicate full time hours to the business.

As far as capital goes we have 30k sitting in the bank, we are financing the equipment at $3200 a month and taking 30k from the bank. I understand the implications of personal financing through the bank but I also understand the importance of having to spend money to make money and unless your bank rolled by a rich mother or father you most likely need to go to the banks.

Average gym memberships numbers are around the 500 mark, if we are to become the average then we should turn over around $6400 on a week to to week basis on our DD's. There are also joining fees, purchase of stock and club apparel that can be considered. A 312k turnover business isn't going to make me a millionaire but it certainly lays the foundations down for me to improve my life, further to this I certainly envisage my business to exceed the average which would significantly increase the bottom line.

As someone who is in the early stages of looking to start a business, I'm curious to know how the gym now going? I think you said it was to open August 2015, any pros/cons/advise for the journey so far?

 

[tige19]

As someone who is in the early stages of looking to start a business, I'm curious to know how the gym now going? I think you said it was to open August 2015, any pros/cons/advise for the journey so far?

Hi mate.

Well as all good things, they take time lol.. The 2nd building ( 3 adjoining buildings yet to be built ) was purchased by a large MMA/Karate centre the engineering, drawings and tons planning changed thus putting back construction a fair while. They have JUST turned soil so it's all a bit of a waiting game and what's a real pain in the arse is the fact I have to go through all the finance approvals again as the initial approval is only valid for 3 months. So as we stand the website construction was put back for a November launch ( I will post link in here when up ) and opening has been pushed back until start of March provided all the trades do what they need to do and do it on time. At this stage it's all paper trails and preparation, I have all my contacts in place for me and I have Pre-Sale action planned all dated and the first step being the website. After the website all social media platforms will be launched and a YouTube channel to create some noise and excitement. I'm pumped, just can't wait to get stuck into it.

It's hard to give advice as i don't know your industry but a few things I've noted and that can help you.

1) Read!!! Download the book "Think and grow rich" - It is in the iTunes Ibooks store for free, it is a MUST for entrepreneur's

2) Gather as much information about the market you're trying to penetrate, know your competitors strengths and know where you can have pod

3) Find someone who you can talk to, someone who has specialist knowledge and can provide some mentorship

4) Go with your gut fee always

5) Have a real crack

So many sheep in this world who will work day jobs and float through life, be determined to be a leader.

 

[BNE23]

Hi mate.

Well as all good things, they take time lol.. The 2nd building ( 3 adjoining buildings yet to be built ) was purchased by a large MMA/Karate centre the engineering, drawings and tons planning changed thus putting back construction a fair while. They have JUST turned soil so it's all a bit of a waiting game and what's a real pain in the arse is the fact I have to go through all the finance approvals again as the initial approval is only valid for 3 months. So as we stand the website construction was put back for a November launch ( I will post link in here when up ) and opening has been pushed back until start of March provided all the trades do what they need to do and do it on time. At this stage it's all paper trails and preparation, I have all my contacts in place for me and I have Pre-Sale action planned all dated and the first step being the website. After the website all social media platforms will be launched and a YouTube channel to create some noise and excitement. I'm pumped, just can't wait to get stuck into it.

It's hard to give advice as i don't know your industry but a few things I've noted and that can help you.

1) Read!!! Download the book "Think and grow rich" - It is in the iTunes Ibooks store for free, it is a MUST for entrepreneur's

2) Gather as much information about the market you're trying to penetrate, know your competitors strengths and know where you can have pod

3) Find someone who you can talk to, someone who has specialist knowledge and can provide some mentorship

4) Go with your gut fee always

5) Have a real crack

So many sheep in this world who will work day jobs and float through life, be determined to be a leader.

Thanks for the reply, I appreciate the tips and will be watching your developments with great interest. I am two chapters into 'Think and grow rich' and already don't want to put it down. However, I think I'll take my time in reading it as to try and absorb what is being said. It's quite subliminal but the message is certainly there.

Would you mind if I PM'd you to ask a few questions about start up?

 

[tige19]

Thanks for the reply, I appreciate the tips and will be watching your developments with great interest. I am two chapters into 'Think and grow rich' and already don't want to put it down. However, I think I'll take my time in reading it as to try and absorb what is being said. It's quite subliminal but the message is certainly there.

Would you mind if I PM'd you to ask a few questions about start up?

Think and grow rich I've been reading for 4 months, slowly but surely. The best way to gauge if your journey is on the right path is if you resonate with what's being written. Often I was saying to my "man that's what I do" or " I already sub conscientiously think that way "

Yeah pm me mate

 

[Puddy]

My dream would be to open a cigar shop!

 

[raskolnikov]

I'm a teacher and love teaching at the moment. However I really don't see myself doing it for the rest of my working life. I think at some stage I'll become fed up with the paperwork and the increasing behaviour management challenges. I've had an idea the last couple of years of getting into the mobile coffee van business. I'm currently looking at different franchises to see what is available. I'm not in the financial position at the moment and probably won't be for a few years but it's something I would really like to do one day

 

[Willo_]

So I have been employed full time as a signwriter for the last 18 months.... this morning I was let go and basically offered work as a contractor when needed...

How do I go about potentially starting to work for myself? is it just a matter of getting out there and getting my hands dirty?

Probably a bit vague but it all has sort of just happened today

 

[The Dice Man]

Interesting thread. My wife and I have just left our jobs and have been planning for months(years really, while visas were in our way) on opening a food truck. We have the concept, the business plan ect. We are funding it ourselves with a small percentage coming from a interest free loan from the government. The one thing we don't know yet is how to structure our business. The tax system here is very complex. If we pay ourself here, 43% goes to the government. We have been working 6 days a week for the last seven months so we haven't been able to speak to anyone about how to structure it, as the guy is a 600km round trip away. That all changes next week when we have more free time to finally get things really rolling.

We are hoping to be operational in Feburary, but still many mountains to climb.

 

[The Dice Man]

I'm a teacher and love teaching at the moment. However I really don't see myself doing it for the rest of my working life. I think at some stage I'll become fed up with the paperwork and the increasing behaviour management challenges. I've had an idea the last couple of years of getting into the mobile coffee van business. I'm currently looking at different franchises to see what is available. I'm not in the financial position at the moment and probably won't be for a few years but it's something I would really like to do one day

Why buy a franchise? You could buy a little van... Fit it with an espresso machine and away you go. Machines are expensive though.

What are the rules in Australia regarding where you could park? Our idea to get around that is to place our business on the premises of another business... For instance the car park of a Bunnings.

 

[utility]

Operate through a private foundation. DYOR.

 

[Boootsy]

I think first of all it is necessary to draw up a business plan. You have to count how many you need money and really appreciate when you can you make a profit. Many people think that is just starting out and they will get a lot of money. I had to take a loan to start here http://www.mybusinesscreditlines.com , becouse i didn't calculate my expenses.

 

[Membling]

Been starting to have a look at starting an import business. Still in the capital accumulation phase and product selection phase. Very vague right now but is a 5 year plan.

Any suggestions apart from market research??

 

[Resistor]

Hi mate.

Well as all good things, they take time lol.. The 2nd building ( 3 adjoining buildings yet to be built ) was purchased by a large MMA/Karate centre the engineering, drawings and tons planning changed thus putting back construction a fair while. They have JUST turned soil so it's all a bit of a waiting game and what's a real pain in the arse is the fact I have to go through all the finance approvals again as the initial approval is only valid for 3 months. So as we stand the website construction was put back for a November launch ( I will post link in here when up ) and opening has been pushed back until start of March provided all the trades do what they need to do and do it on time. At this stage it's all paper trails and preparation, I have all my contacts in place for me and I have Pre-Sale action planned all dated and the first step being the website. After the website all social media platforms will be launched and a YouTube channel to create some noise and excitement. I'm pumped, just can't wait to get stuck into it.

It's hard to give advice as i don't know your industry but a few things I've noted and that can help you.

1) Read!!! Download the book "Think and grow rich" - It is in the iTunes Ibooks store for free, it is a MUST for entrepreneur's

2) Gather as much information about the market you're trying to penetrate, know your competitors strengths and know where you can have pod

3) Find someone who you can talk to, someone who has specialist knowledge and can provide some mentorship

4) Go with your gut fee always

5) Have a real crack

So many sheep in this world who will work day jobs and float through life, be determined to be a leader.

How do you go about number 2?

 

[tige19]

How do you go about number 2?

Use census data from our government website for the demographic of your chosen area, Google your competitors until the cows come home and make sure you pop in and see how they operate. You need to know opposition price points, consumer thoughts on your opposition and learn how the do business. Once you have that type of information it will help you to develop a business plan based on areas you think the opposition have gone to sleep on.

For example, my main ( and only real opposition ) is Anytime Fitness, see below -

Anytime fitness
* Contract membership
* American Franchise
* 14.95 18 month membership
* 16.95 12 month membership
* little to no parking
* Small facility
* no PT membership
* Terrible website
* Life Fitness equipment
* joining fees+swab pass free

My business
* no contract
* Australian/local business
* 10.95 weekly
* Ample parking
* bigger facility
* coaching/training membership $39.95
* brilliant website
* matrix equipment ( brand new )
* no join fee

Basically I'm saying to people in the area - "hey guys, I'm cheaper, have better and brand new equipment, you can join and not be locked in and if you really need help, don't pay for PT separately simply include it in your membership".

I would be really disappointed if I didn't pull ALOT of their members and grab a ton who are uncomfortable being locked into long term contracts.

 

[Resistor]

Thanks so much for the detail in the above post. Very interesting and something I will endeavour to look into more into the future!!

 

[Th3 DoG FaTh3R]

Really interesting thread and I commend and wish the best to anybody that not only prepares themselves for success by conducting thorough research and due diligence but then have the courage to implement their ideas and the endurance to sustain their plans and give it a red hot crack.
Power Raid I would like to discuss with you a business plan I have been working on and am at the stage where i need to look into some seed capital for prototype development and testing. Would it be ok to send you a PM? It seems there is a permission block on accessing your profile?

 

[Power Raid]

Really interesting thread and I commend and wish the best to anybody that not only prepares themselves for success by conducting thorough research and due diligence but then have the courage to implement their ideas and the endurance to sustain their plans and give it a red hot crack.
Power Raid I would like to discuss with you a business plan I have been working on and am at the stage where i need to look into some seed capital for prototype development and testing. Would it be ok to send you a PM? It seems there is a permission block on accessing your profile?

No problem re the PM

I'll fix the settings

 

[juss]

I'd like to one day start my own small recruiting firm, but would need a few years in the industry first. Plan is to change from my current role to a recruitment consultant sometime in 2016, and then after a few years start my own firm.

 

[Affidavit]

Interesting thread. I'm currently 11 months into working on my startup with a friend. We will hopefully be launching in the next month. A couple of international players have come in and entered the space before we could get going but that's alright because they're proving the system works and we are hoping to be much more diversified in our offerings.

I'll post more later.

 

[craigos]

Interesting thread. I'm currently 11 months into working on my startup with a friend. We will hopefully be launching in the next month. A couple of international players have come in and entered the space before we could get going but that's alright because they're proving the system works and we are hoping to be much more diversified in our offerings.

I'll post more later.

Any spoilers as to what industry and or product you're involved in?

 

[Silent Alarm]

Been starting to have a look at starting an import business. Still in the capital accumulation phase and product selection phase. Very vague right now but is a 5 year plan.

Any suggestions apart from market research??

Import/export? Art Vandelay?

 

[Membling]

Import/export? Art Vandelay?

If I could be as well of as George...

More thinking along the lines trading high volume low profit into emerging markets such as India and catch on to the growing middle class. Haven't gotten that far but need some capital and experience before even making a sketchy plan