Looking to start your own business?

[Power Raid]

Anyone out their looking to start their own business or have a business idea but don't know how to push forward?

I might have some ideas that may help, especially for those looking to raise capital in the private or listed space.


Even if you have all the answers, I would love to hear what people are trying or achieving!

 

[Reluctant Jim]

Hi power raid

Saw your post in the looking for guru thread and then tracked this thread down. I've seen some of your posts in the networth thread and you seem like a worldly/ inspiring guy so I'm keen to pick your brain.

Background: I've just graduated uni, but have been working full time as a tax accountant for the last two years. In my job I work with alot of small businesses so I've had a fair amount of small business exposure for a 22 year old.

Anyway, my goal is to be involved in small business ownership and my problem is aside from accounting/business admin type skills I'm unskilled so I'm unsure what businesses I should look at starting or buying into.

I don't really want to be involved in accountancy firms as I think professional service firms are obviously about service delivery at all parts of the heirarchy rather then business management and processes etc. I've also been thinking about franchises but have heard a horror story for every good story.

I guess ideally I'd just meet someone who has an idea and we'd go from there in partnership. Although I realise that sounds like I'm lazy, I am very hard working and have had a lot recognition at my job for improving the business profitability and work processes.

So I'd be keen to hear your thoughts and also where should I go to meet other commercially minded people?

Cheers and thanks for in advance

 

[Power Raid]

Hi power raid

Saw your post in the looking for guru thread and then tracked this thread down. I've seen some of your posts in the networth thread and you seem like a worldly/ inspiring guy so I'm keen to pick your brain.

Background: I've just graduated uni, but have been working full time as a tax accountant for the last two years. In my job I work with alot of small businesses so I've had a fair amount of small business exposure for a 22 year old.

Anyway, my goal is to be involved in small business ownership and my problem is aside from accounting/business admin type skills I'm unskilled so I'm unsure what businesses I should look at starting or buying into.

I don't really want to be involved in accountancy firms as I think professional service firms are obviously about service delivery at all parts of the heirarchy rather then business management and processes etc. I've also been thinking about franchises but have heard a horror story for every good story.

I guess ideally I'd just meet someone who has an idea and we'd go from there in partnership. Although I realise that sounds like I'm lazy, I am very hard working and have had a lot recognition at my job for improving the business profitability and work processes.

So I'd be keen to hear your thoughts and also where should I go to meet other commercially minded people?

Cheers and thanks for in advance

off to soccer but will respond later tonight

can you give me an idea of what you like doing and some opportunities you may have seen that have got you thinking.

no issues if you have a blank canvas though as this can be a positive.

oh, any feel for what capital you may have access to?

 

[Run n Spread]

Anyone out their looking to start their own business or have a business idea but don't know how to push forward?

I might have some ideas that may help, especially for those looking to raise capital in the private or listed space.


Even if you have all the answers, I would love to hear what people are trying or achieving!

It's a funny one, I have had a couple of major ideas that I have in the past tried and have been trying to get off the ground. Thing is I believe there are major opportunities in business and communications yet the issues I have noticed are:
1) Lack of capital-Obviously individual and from an investment perspective no body is spending/investment. So therefore you have the problem of how the hell do you grow an economy if everyone is pessimistic?

2) Lack of specialist knowledge- It is hard for people to do everything all on their own. They need people with specalised skills who either are doing their own thing or as per 1 can't be hired.

3) Marketing- A lot of advertising space (even the newer ones) are tapped out so you have the problem of trying to create a presence through a heap of noise.

They are the main issues I've observed in myself and others, anything else is difficult in the extreme sure but is reliant on the above 3 factors going to plan before anything can be solved.

 

[Reluctant Jim]

I'm a blank slate, I have experience in hospitality, website creation, accounting and construction but no real revolutionary idea about how those industries could function better, just that I think I might know how to work the attention to detail better in those specific businesses.

I'm very interested in finance and investing, I have used stock investing and living like a zen monk to build my 20k savings and 20k asx share capital. I would love to work in the industry of portfolio management but I realise that game is about contacts and capital and i have little of both ATM. I am also working on a personal finance website as a hobby, but I don't really want to monetize it other than adsense for fear of appearing like a spruiker.

I am a minamilist and as such have very low expenses but one day I would like to raise a family in an environment more prosperous then the one I was raised in. So I figure why not use the years when I'm young and full of energy to give a business a crack, as I have a very stable and flexible job where I can basically flexitime my hours to allow for a venture.

Thanks again mate

 

[Power Raid]

It's a funny one, I have had a couple of major ideas that I have in the past tried and have been trying to get off the ground. Thing is I believe there are major opportunities in business and communications yet the issues I have noticed are:
1) Lack of capital-Obviously individual and from an investment perspective no body is spending/investment. So therefore you have the problem of how the hell do you grow an economy if everyone is pessimistic?

2) Lack of specialist knowledge- It is hard for people to do everything all on their own. They need people with specalised skills who either are doing their own thing or as per 1 can't be hired.

3) Marketing- A lot of advertising space (even the newer ones) are tapped out so you have the problem of trying to create a presence through a heap of noise.

They are the main issues I've observed in myself and others, anything else is difficult in the extreme sure but is reliant on the above 3 factors going to plan before anything can be solved.

1) Access to capital is always an issue but think of it is like energy. It can not be created or destroyed it changes moves. The trick is knowing where to look which makes it a skill in itself. That said, the right idea molded for market conditions will get funded.

2) yep yep and yep. I take the view individuals by themselves are worthless but the right individuals forming the right teams are imperative.

3) marketing is important for many businesses but there are better ways to get a bang than advertising. Look at Kochie and his involvement at PAFC to gain a bigger profile.


Feel free to bounce ideas

 

[Power Raid]

I'm a blank slate, I have experience in hospitality, website creation, accounting and construction but no real revolutionary idea about how those industries could function better, just that I think I might know how to work the attention to detail better in those specific businesses.

I'm very interested in finance and investing, I have used stock investing and living like a zen monk to build my 20k savings and 20k asx share capital. I would love to work in the industry of portfolio management but I realise that game is about contacts and capital and i have little of both ATM. I am also working on a personal finance website as a hobby, but I don't really want to monetize it other than adsense for fear of appearing like a spruiker.

I am a minamilist and as such have very low expenses but one day I would like to raise a family in an environment more prosperous then the one I was raised in. So I figure why not use the years when I'm young and full of energy to give a business a crack, as I have a very stable and flexible job where I can basically flexitime my hours to allow for a venture.

Thanks again mate

at 22, I had similar ambitions but no direction which resulted in many frustrations. So don't worry about not having a clear direction.

I started to find my way, similar to you, when I did my "apprenticeship" as a CA at Andersen in my late 20s. The big difference between myself and my peers was I wasn't interested in accounting rather how the client structured their business, carried out operations, financed itself, mitigated risk, lobbied government, partnered, structured its tax (not tax itself but tax structuring) etc. On every client literally think of what they do right, what they do wrong and how you can capitalise on the opportunities in front of you. Then talk to the MD about your ideas, and trust me they will always listen but make sure you ask it in the the form of a question rather than a statement.

remember accounting is going to be a dying trade in Australia from a data processing point of view as it will be outsourced OS. Eventually, with the harmonisation of accounting standards even CAs and CPAs will be squeezed. that said, you could you start a business where you get your clients to scan their invoices and processed overseas. These scans could be linked to the journal entry, in the accounting software, which alleviates the work for tax and audit who need to see the support. A good accountant is $4k in the Philippines and can be charged out in Oz for $50k which is quite a healthy margin.

Before you switch to finance, finish your "apprenticeship" as a financier without it is a spruiker. Finance is not about formulas it is about understanding people, understanding business and as you say contacts. It relies on you creating a market between buyers and sellers of capital and the participants having confidence in your reputation.


Keep debt free and continue the zen thing. As when you find your opportunity you need to be in a position to move and "hold your breathe" until cash flows turn positive. Even today, I live on less than $2k a month whilst in Perth (I splurge when I go on holidays or work trips).

If I could suggest one more thing.....focus on having fun on your journey. You are only going to have one youth.


If you have any specific ideas, feel free to bounce ideas or PM me.

 

[Reluctant Jim]

Thanks for your thoughts. I agree accounting is going to lose significant industry size due to program's like xero and outsourcing, hence my desire to multi skill.

In terms of finance apprenticeship did you mean get qualified in the field? CFA or fin management degree?

TBH I think I'll try and get involved in some sort of small franchisee style business so I can get some experience. Ideally I'd work in the business initially so I'd understand it then put in place the right processes and delegate to management so I can focus on working on it rather then in it.

Cheers for the thread mate has helpful to clarify this all to myself.

 

[Power Raid]

Thanks for your thoughts. I agree accounting is going to lose significant industry size due to program's like xero and outsourcing, hence my desire to multi skill.

In terms of finance apprenticeship did you mean get qualified in the field? CFA or fin management degree?

TBH I think I'll try and get involved in some sort of small franchisee style business so I can get some experience. Ideally I'd work in the business initially so I'd understand it then put in place the right processes and delegate to management so I can focus on working on it rather then in it.

Cheers for the thread mate has helpful to clarify this all to myself.

I would recommend you work for, or with, others for a while to gain some insight into the industry. I would also recommend partners, that way you can still take holidays and know everything is in good hands.

In terms of franchise, take a look at what is working overseas and consider bringing a master franchise to Australia and NZ.

Even a handbag cleaning business in Asia was presented to me, and I dismissed as ridiculous, turned out to be a boom. A business like this could work in Australia. It is not a glamorous business but is doing $15k profit a week in Jakarta. This type of business requires some training but is a low cost and relatively quick business to launch. The best thing is one could start up in Sydney, then Melbourne, then Perth and get that ticking over and have the time and energy to seek the next business idea.

 

[Getz]

I'm going to build a monorail. If anyone wants to invest $3 Million?

 

[Reluctant Jim]

I'm going to build a monorail. If anyone wants to invest $3 Million?

Bsb and account number?

 

[Yoda_]

As a recently qualified carpenter I'm stuck in-between a rock and a hard place.

Without the building licence I am limited to the scope of works that I am able to achieve however the works are always available.

Im wondering what would be the best way to go about actually getting the work whilst not burning any bridges with my current (sub contracting) employer?

 

[bresker]

I want to start my own gelato/ice cream shop.

 

[craffles]

Power Raid what are your thoughts on service based businesses eg consultancies, agencies etc.

Seems to me that the biggest positive would be start up costs are relatively low but the biggest barrier to success would be establishing a decent client base.

Where should I look to find more information on opening a consultancy in my field of expertise?

 

[Power Raid]

Power Raid what are your thoughts on service based businesses eg consultancies, agencies etc.

Seems to me that the biggest positive would be start up costs are relatively low but the biggest barrier to success would be establishing a decent client base.

Where should I look to find more information on opening a consultancy in my field of expertise?

yep, a great idea.

Before I launch in, is there an area of consulting or industry that you are contemplating?

 

[craffles]

Marketing ~ specifically consumer activation (POS, events, digital etc)

 

[Power Raid]

Marketing ~ specifically consumer activation (POS, events, digital etc)

I have seen a number of great marketing type business recently including a business called Yatango

what I really like about this business is they not only do "marketing" but control the market and control the branding. Almost like coles do with homebrand but in this case via the internet rather than the shelves.

I also like businesses that seek to use mobile phones, GPS functions (and other location functions) and previous spending habits to personalise shopping experiences.


I will disclose I am hopeless at IT and struggle with passwords so don't ask about the technical aspects of your ideas but I can certainly help with funding, the business plan and most important to any business the commercialisation. Whilst developing your idea, think very carefully of the business model, point of difference, competitive advantage, why there is a need for you idea and the revenue streams.

Do you have a specific idea or still working on it?


oh and sorry for the late reply.

 

[tige19]

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.

 

[checkraiseulite]

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.

how much are you allocating on marketing in the start up phase? and in which channels?

 

[tige19]

how much are you allocating on marketing in the start up phase? and in which channels?

I am purchasing a stand with club logos on it for about $400, the stand will be placed in surrounding shopping centres and large business's up 2 months before opening. Rental of space shouldn't exceed 600 per space, however I'll confirm closer to the date ( opening August 2015). A top shelf website should set me back no more than $1500 and local ads in the paper depending on size are $200-$500.

As an overall we will spend around $5k on marketing, that will be plenty. We will spend a solid 2 months on pre sale and have a Facebook page before that. I have allocated 50k for the fit out and because it's a newly constructed premises the owner is adjusting plans to my specs.

It's a long term investment, I'm hoping I will only need to work their on a full time basis for no more than 12 months. Once the business is established I will look for another location, I'm not hell bent on having the business turnover 600k, I'm looking at slow and sustainable growth through multiple sites.

Research is the key, I've been working on this for the last 12-16 months and have gathered countless data from all of the main 24/7 chains. I think I'm taking the positives from them all and eliminating the negatives. Time will tell.

 

[checkraiseulite]

Make sure you have someone good look over the lease first.

Good luck.

 

[tige19]

Make sure you have someone good look over the lease first.

Good luck.

Hopefully the hard work creates luck, or so they say in footy circles. I've negotiated leases for my current employer on a few occasions so I am confident in handling that aspect, none the less the terms will be forwarded on to my solicitor.

Thanks mate

 

[tige19]

Make sure you have someone good look over the lease first.

Good luck.

If you have any advice, please inbox me.

 

[Power Raid]

If you have any advice, please inbox me.

are you registering a company? could be worthwhile in the case someone frivolously sues you.

you may want to own the shares in the company in a discretionary trust


good luck

 

[tige19]

are you registering a company? could be worthwhile in the case someone frivolously sues you.

you may want to own the shares in the company in a discretionary trust


good luck

I manage in a completely different field ATM. I'm not sure why I would get sued? There's nothing illegal that's transpired, I have basically analysed data from different streams and developed a business plan accordingly.

Business is registered, and I am the managing director. Design has yet to be completed but I will leave that to 99 designs as I am inept in a creative sense haha.