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Businesses you can't lose

Discussion in 'Small Business' started by Darlinghurst Boy, 24th Dec, 2015.

  1. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Brothel business, Funeral Business

    Both these business's are money spinners

    Brothel business are advertised on business for sale websites .
    Funeral business are rarely advertised
     
  2. Blacky

    Blacky Well-Known Member

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    Any business, poorly managed, can go broke.
    Any business, well managed, can make money.

    There are four industries which I like.
    Children (that is supplying good/services to them... not the physical sale of them ;))
    Old people (again - services to them)
    Dead people (funerals).
    Alcohol

    In general the young, old and dead are a never ending market. No matter the market, people still breed, age, and die. And in general people will always spend decent coin on them all.

    The alcohol one is a bit of a different one, however, supply of alcohol rarely drops - but the nature of how/what is consumed changes over time and with cycles. This is esspecially true in Australia.

    Blacky
     
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  3. datto

    datto Well-Known Member

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    Combine the two and cater for necrophiliacs. Corner the market
     
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  4. Esel

    Esel Well-Known Member

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    Ive got a couple of friends who work for different alcohol companies. They both have said that alcohol consumption is down and dropping in australia. Apparently the industry is being squeezed by the wellness movement and drugs.
     
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  5. Biz

    Biz Well-Known Member

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    Liquidator.

    Seen a few builders go under. At the start it seems like you may salvage something until those parasites sink their teeth in
     
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  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Brothels can be good businesses but not always. I have at least 3 clients who have had brothels and got out of it because it was too hard. Finding staff, dealing with criminal elements, staff stealing and under reporting etc.
     
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  7. geoffw

    geoffw Moderator Staff Member

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    I'm not sure if this comment will pass the censorship police.
     
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  8. Scott No Mates

    Scott No Mates Well-Known Member

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    Start an educational facility with the government grants. Team it up with a good sales team, prey on the poor, illiterate and disabled signing them up to courses which they'll never complete.
     
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  9. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    There was a Brothel business for sale in Newcastle asvertised through a business broker earlier this year..
    Price was 350k.

    I made enquiries and signed a confidentiality disclosure, on finding out the name of the business I done my research to see it had had problems with bikies owning it previously.

    I decided not to go look at it, I mean it seemed to be a good money spinner, was licensed by the Council, etc but I was a bit afraid of the bikie element , I have heard stories where they have turned up st brothels and nightclubs and told the owner he needs to pay protection money.
     
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  10. bob shovel

    bob shovel Well-Known Member

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    Was that fanny's in Newcastle? :cool:
     
  11. Greyghost

    Greyghost Well-Known Member

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    Regardless of making money or not I wouldn't buy or be associated with a business that is unethical or distasteful.

    On the point of liquidators, I think this would be a hard job, trying to produce a suitable outcome and dealing in people's misery and some of the toughest days of their lives.

    I don't think it is just a matter of looking at a business' books and doing due diligence to make sure numbers stack, I feel you have I believe in the business itself, that is the intangible that will make a good business great.
     
  12. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    ABC News radio had a segment on brothel ownership a while back - most were saying the businesses were struggling heavily due to independent people working online. Zippo overheads.
     
  13. 2FAST4U

    2FAST4U Well-Known Member

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    Yeah I don't think that alcohol is a great business either. With the changing demographics of Australia people are drinking less alcohol and the Australian Government raises the amount of tax on it bi-annually. The margins are low and you're competing with Wesfarmers/Woolworth's various franchises who will always undercut you. Depending on the demographics of the area you could also be looking at regular theft occurrences. Than you've got to pay rent/salaries/utilities etc.
     
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  14. Lizzie

    Lizzie Well-Known Member

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    So - ruling out brothels and alcohol - that leaves dying and dead people ... always a supply as it's not as if you can just bury great aunt Ethel in the backyard anymore
     
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  15. Tony3008

    Tony3008 Well-Known Member

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    Funerals are a less than sure way of making money. Sure, people are dying all the time but it's not a market you can grow - one person=one funeral. You'd be in competition with long established businesses, have to cover significant overheads and be available 7/24.

    I don't know about Australia but back in UK the average undertaker does around two funerals a week thus e.g. each client has to pay for half a week of an arranger's salary and oncosts although they may only take a 2-3 hours of their time. Some weeks you might be busy; on a summer week you might get nothing with all the overheads still having to be paid. The outfits that do OK are the ones that have multiple outlets served by one central depot which does reduce the overheads significantly (though not the price charged).
     
  16. geoffw

    geoffw Moderator Staff Member

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    There are some very cheap no frills funerals out there now.

    I guess repeat business would be very limited.
     
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  17. JenW

    JenW Well-Known Member

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    Anything to do with gambling would have to be a winner - for the house, not the punters. Again it probably crosses the ethics line, but hey, James Packer thinks it's okay...
     
  18. Tillie

    Tillie Well-Known Member

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    Alcohol consumption has declined for many years but not the money that is used for alcohol. Consumers' taste are changing and they buy less but more premium products. E.g. The most popular beer brands VB, XXXX, Tooheys are slowly loosing market share to more premium boutique 'craft' beers. When 10 years ago it was common to take slab of beer (e.g. VB) to the party now guests turns up with 2 x 6 packs of premium products (e.g. Corona or James squire)

    As a business I wouldn't touch is as 2Fast4u said Woolworths/Coles dominates the market with their liquorstore chains and you can not beat their buying power.
     
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  19. GoOnAndTell

    GoOnAndTell Well-Known Member

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    Very lightly doing research into brothels at the moment as a friend is pitched the idea a couple of times. Back in the day they appeared to be HUGE money spinners but with the internet allowing people to connect directly. Much like the taxi industry those playing by the rules are paying big overheads and subject to solid regulation, and bending the rule is difficult as you are more likely to be punished registered breaking the rules than unregistered ignoring them entirely.

    Booze isn't straight forward. Again licensing rules are making it harder and harder and selling generic off license has tight margins.
     
  20. Esel

    Esel Well-Known Member

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    I would guess that brothels are also taking a hit from apps like tinder and grindr. Mind you, im not really sure who uses brothels, when or why.
     
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