Sold

@Bayview, have you thought about just starting your own business instead of buying? That way you can do something which is low capital to begin with.

 

I guess it's weighing it up, if buying another business at the right price it will then require you to manage both, won't it be difficult to manage both, even worse finding the right staff member to do this. Just being Devils advocate, and I would prefer less risk

What do you think, just concerned the hours necessary to run 2 business'

Another question, if you had the opportunity to sell your business today at the right price, covering all debts would you walk/sell? If answer is yes, I would not look at buying another just my opinion

MTR

 

Haven' thought about that too much.

There is currently a prime site vacant on the main foreshore road down our way - which used to be a mechanical business, with a spare parts franchise (which we use) almost right next door. They were one of the biggest accounts at the parts store.

The mechanic business moved because the rent went up. It's been vacant for about 6 months now.

It would be an easy set-up for an extension of here...may be worth a few enquiries.

A sharpened pencil on the rent would be first box ticked.

I'm fairly sure I won't be going down the tyres and workshop rout again.

One idea we've toyed with for a while is to import products from Bali. My SIL and BIL live there, so they are "on the ground" already to source and coordinate it from that end, and they are keen to do something. No doubt a lot of DD first.

That site on the main road would be ideal; large floorspace and lots of parking, and we've seen from observation of general are and also closer to the city that these types of items are in demand.

 

I guess one thing to ponder would be whether you are good at that sort of business i.e. the mechanic business. Is it the best business for you to be in? Is it the best sort of business full stop?

 

Congratulations..you made a balanced executive decision....a decision most people would not have the guts to make till it was too late. So to that chapter of your life ....may it remain in the past.

Now the future awaits.....you have a choice....look at the rear view mirror or look through the windscreen? I know which one you will take....

Some excellent opportunities await..and are ripe for the picking in some markets...your conversations will be very different in another 2-3 years if you take this opportunity.

Again congratulations on taking the tough decisions...as I said the there is blank canvas called the future. What will you paint??

 

Yes, this is one of the problems with multiple businesses, but I know of several people who do it. One of my closest friends now runs 5 businesses from different locations, and he is now basically just the overseeer. Another of our friends owns around 30 fitness studios.

The business in it's current state would never sell for what I paid for it - which was via a part PPoR equity/part comm loan.

Assuming it even sold, it would leave us with no income and still debt which would have been close to unserviceable.

After this PPoR sale, our business is debt free, and that is an enormous turnaround in cashflow. The monthly interest on the loan was around $2300. Gone. This is effectively a $4600 per month change to the positive if that makes sense.

 

I see, nice

 

Given the issues confronting the mechanical industry - no apprentices coming through any more and/or unreliable, and many mechanics are low-life car-wreck-in-front-yard bogans; who hate bosses and anyone rich, and so on - probably not.

 

Well done on a tough decision BayView. Now it's time to relax a bit with the monkey off your back, and look to the endless possibilities of the future

 

Wise, brave and empowering decision.

Well done, mate.

I bet you feel a lot lighter!

 

Congratulations Bayview. You've done the right thing and you won't regret it. A great lesson for your kids too. The only way is up!
Keep using your frugal skills to stay in front.

 

You guys are the best! What a terrific bunch of folks we have here!!
Thankyou all.

 

Good luck BV to you and your family. Your hard work and sacrifices will pay off.

Have you thought of buying a cheap house in an area like Phillip Island. At this time of the year they are cheap because of it being winter, doing the Reno and selling it during the summer. I realize it would be 45 minutes to your Workshop each way. You could pay cash for some of the ones in need of renovation. There have been a few deceased estate sales lately. Solid but needing cleaned up.

 

Thank you for being brave in sharing your experiences and best of luck with all your future exndeavors. You guys rally deserve it.

 

Philip Island is about 1.5hrs from our place. Doesn't seem that far when you look at the maps.

I'd still do it though; if I can get my mechanic up to speed with running the workshop, I'd take it on, and spend a couple of days in a row down there at various times etc.

He's a terrific "back room mechanic", but he is a 90 year old man in a 57 year old body - anti-technology and progress. Has made no attempt to learn the invoicing, the computer or tyre prices etc, or be engaged in the running of the business, or shared ideas or suggestions etc; despite my encouragement...clearly not interested from reading the body language and lack of interest....just plods along, does his job and goes home.

It leaves me with a problem now; in order to free up some time (finally) to be able to leave the business, I may have to give him an ultimatum; get up to speed with the extra skills I need for him to "run" the place, or find someone else who can.

I've been a slave to the place out of fiscal necessity, but that problem has pretty much disappeared now....time to get out in the sunshine a bit more.

I don't want to lose him because he is very loyal, reliable and trustworthy, but there is no back up if he gets sick, or if I get sick, and I want to get back to the situation where I can move around and be here when it suits rather than a slave to the place.

As a business owner I believe we have earned that right.

 

That is awesome - but sad - news BV ... keep your chin up and we all know that sometimes you have to take a step back to move forward. The lesson you have learnt in the process are priceless and will make you stronger - and wealthier - in the future.

Perhaps it's not ideal for yourselves - but consider doing the build - sell - build - sell - build to make your way back up the equity pile ... we did similar but with constantly the worst house - reno - sell - reno - sell - reno sell (as long as you don't mind living in one room for periods of time). Each house doesn't need to be in "your suburb" or perfect location, as long as it's chosen well

Good luck on the journey

xx

 

Having just come out of a similar situation myself, I can tell you that you don't realise how easy it is to "get better" when you're always sick...to use a crap analogy.

Onwards and upwards - sometimes we all just have to take a smack on the chin and move on.

the fact you have both made those tough decisions - together - and come out of it - together - will be the icing on the cake when you look back on all of this later.

have you thought about offering your employee a 5% cut of the business? That way, they reap the rewards of their hard and harder work....?

 

Congrats Bayview!

You have my utmost respect for your strength and tenacity. Thanks for sharing

 

Disagree.

I made a few mistakes with this workshop purchase, and several other life mistakes - in hindsight.

You make yer own luck for the most part.

On the bright side; we think we are making a good decision with the house sale, and have already secured a nice place to rent....one of those places you see, and immediately fall in love with (if that's possible with a rental?)..move in date is a month from today, and gives us another month to do the move before settlement.

I can feel the depression cloud lifting, lifting.

Might even start to almost like going to work for a change.