Sold

Discussion in 'Living Room' started by Bayview, 21st Jul, 2015.

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  1. Bayview

    Bayview Well-Known Member

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    If I didn't know these two people extremely well, and hadn't seen what they have done since moving there a few years ago, I'd agree.

    They have built up a very good network of contacts now; including the builder who has done the previous 2 projects and the current 2. The results of these current 2 won't be known until they are finished; which should be in the next 2-3 months.

    Buying vacant land over there is not as easy as here; it is not posted on local r/e sites generally, but is more known through word of mouth and particularly the building trade.

    The products are not necessarily "Balinese" style. They are predominantly higher-end locally made items such as furniture, but also the usual items of home living and accessories.

    The SIL and BIL have been furnishing their projects this way, and the selections are basically only limited by what you can imagine. These suppliers are now part of their contact network, as well as contacts at the export side of things, etc.

    At this end, we are looking to obtain a suitable retail site for perhaps a 1 year lease to see how things go, and both the in-laws and ourselves will be co-partners in the purchasing of the products and on-going costs.

    They will coordinate the Bali end of supply and export etc, and ship each container-load. We will coordinate the retail aspect at this end. They fly over here every few months and will be on-hand to help with that end as well.

    Down our way there is definitely a demographic market for these products; especially the furniture, as many places pre-order items, whereas ours will be "on the floor". The mark-ups on these items is very healthy and the accessory items is even higher, so prolonged periods of "floor time" can be absorbed much better.

    But, as I said; for all of us it will be a side-line start-up business, so the necessity for fast profits and cashflows will not be there.
     
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  2. Property Hoarder

    Property Hoarder Well-Known Member

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    I believe 2 needs to be done. It would be the one I would do first.

    I remember the other thread on SS and just looked at street view. There is an old man feel which needs to go.

    the tyres sign in the window needs to go and the light let back in. I would also ensure that the door is cleared (and attached window also). The bars need to be painted a colour which does not show them up.

    I would want people walking by (in the day) to able to look in and feel comfortable to come in ask and about your services. If you can make a comfortable front desk and waiting area, I believe it would go down will with customers.
     
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  3. Bayview

    Bayview Well-Known Member

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    Yes, the plan is to provide a "doctor's surgery waiting room" type environment, with a tv, coffee machine, drinking water station, carpet and a heater, magazines etc - plus thew all-important displays and "Impulse buy" wall display.

    And, another tv continuous "pull-through" industry ads such as reminders for new shock absorbers, or a mini-workshop on how to check tyres, specials on tyres and various products, and so forth. A bit gimmicky, but the Repco Centres do it, and it's impressive....helps with the impulse buys too.

    Or; not even automotive stuff ads - which can be sold to local businesses (we have been approached by other local businesses to do the same, but haven't had the cashflow to pursue that). For eg; the local bottleshop, or chemist, or hairdresser etc.
     
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  4. Tonibell

    Tonibell Well-Known Member

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    You are sounding like a new man Bayview !!
     
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  5. Bayview

    Bayview Well-Known Member

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    Sort of. But still saddened by the fact that we have had to sell...feels like a massive life failure so far, but we'll get through as many others do.

    All these ideas about the shop I've mentioned just now are what have been buzzing in my head for some years already, and now there's light at the end of the tunnel that they can be implemented, so from that aspect it it's exciting.

    Thanks for your support TB.
     
  6. KMD

    KMD Well-Known Member

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    It's not a massive life failure Bayview - in fact quite the opposite - you have shown real courage and have inspired many along the way. I love reading your posts and wish you and your family a bright future from here on.
     
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  7. Bayview

    Bayview Well-Known Member

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    Thanks, KMD!
     
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  8. Biz

    Biz Well-Known Member

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    Agree with KMD mate, at least you are having a go and I like your posts because they are honest. You're not afraid to tell us what is really going on even though there has been a lot more bad than good over the past few years. I can't think of too many other people on this site who are so willing to share the bad rather than just the good experiences. keep doing what you are doing.
     
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  9. Tonibell

    Tonibell Well-Known Member

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    Not having the dream home and a comfortable passive income is not really a failure.

    It sounds like you might have under invested in the business because all of the capital was in the house.

    I'll be very interested to see how it goes now that you are focussing on income earning investments.
     
  10. Bayview

    Bayview Well-Known Member

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    The house stood alone for the most part, and the business was bought using the equity in it.

    We had other prior loans which were as a result of equity loans from the previous PPoR and then the current PPoR when it was built...they were transferred.

    At that stage, prior to the business purchase, things were swimmingly, and were for the first 2 years of the business - even though the 2nd year saw a drop in turnover.

    Unfortunately, I was trying to trade on and keep all my staff on out of loyalty to them - which in hindsight was a mistake.

    I really should have let go at least one of them after 18 months, but didn't do anything, andf then when I did take action the situation had gotten worse.

    The resulting drop in business turnover each year has led to the precarious serviceability situation across all our loans.

    The end result has been to be able to service the loans, but not much else.
     
  11. geoffw

    geoffw Moderator Staff Member

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    You may need to change your username :-(
     
  12. Piston_Broke

    Piston_Broke Well-Known Member

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    :) You're doing way better than most and better than you make out or think I reckon.
    Sure feeling bogged down, treading water and backward steps (ie losses) is all part of the journey, but still doing ok. And positioned to do better much faster.
     
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  13. ellejay

    ellejay Well-Known Member

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    Sounds like you've got plenty to be proud of BV and as said above, you're doing better than a lot of people. Not many people share when things go less well. Important to remember when you're reading all the success stories on here :)
     
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  14. Lizzie

    Lizzie Well-Known Member

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    Doesn't hurt to remember a "dream" home isn't the be all and end all.
     
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  15. Bayview

    Bayview Well-Known Member

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    Yep; and avatar.

    I thought "golfer"

    And the avatar could be a pic of Bill Murray (from caddy shack) ;)
     
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  16. skater

    skater Well-Known Member

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    Yes....magazines read by women. It never ceases to amaze me that none of the places here provide women's magazines. There's always plenty of car mags, or typical 'guy' stuff, but nothing for women.

    It's not the end! It's the start of the future! Not that long ago, we were on the verge of Bankruptcy, due to a poorly performing Business. Yesterday, Hubby retired! We came back from a much lower re-start than you are doing. If we can do it, you can too!

    Noooo! Keep the username and the avatar. Gone doesn't mean forever, you know.
     
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  17. MTR

    MTR Well-Known Member

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    Hi Bayview
    Thought it's about time for an update:)

    mtr
     
  18. Bayview

    Bayview Well-Known Member

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    Yes, well have found somewhere to rent for the forseeable future.

    Have received our deposit via Section 27, and have been paying back folks we owe money to and paid out the very drawn down Visa card and everyday LOC. :cool:

    Also selling off a few items on Gumtree which we accumulated over last year - we tried to do the "Holiday Shacks" holiday rentals last summer, so had to "finish off" the house for that with furniture, beds, linen crockery etc....lots of borrowing of funds from family and lay-buys left right and centre.

    The summer bookings paid for most of the costs of the purchases, but not much left over for profit and debt reduction - which was the plan. At least we got the house finished as a result.

    Unfortunately, we did not get any bookings for Easter this year, and we had already booked and paid for somewhere else to be for that period. :oops:

    This put us even more behind with cashflow and money owed; it became apparent after this that unless we always got a booking, we were not in a good enough cashflow position to be able to carry it...basically going further backwards - and no room to go further backwards.

    We realised that we had too good a house for this location - folks who would pay over $1,000 per night are not really looking in Dromana - they are looking in Sorrento, or Portsea, or Mt Martha, etc.

    So, we either had to dramatically reduce the rental (making it not worth the effort financially) or give it away.

    This was when I finally knew we were stuffed, and the house had to go.

    We move in to the new rental on Oct 1, so the packing has started. :(

    Once settlement has occurred on the sale of the PPoR, and we get out of debt and can start to actually accumulate some funds, I will commence the Roadworthy Inspection aspect of the business.

    This will be good, because it is not something that folks can shop around and/or buy over the internet, and it's something that every car owner contemplating a sec/hand car sale needs to have.

    It will rebirth the business and improve the cashflow. The plan then is to sell the business at the end of this next lease period in 4 years time.
     
    Last edited: 2nd Sep, 2015
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  19. larrylarry

    larrylarry Well-Known Member

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    Hi BV
    Thanks for sharing. Wishing you the best in your businesses. Never give up!
     
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  20. Lizzie

    Lizzie Well-Known Member

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    Thanks for the update ... and once you've settled you will be able to start looking forward again
     
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