What business ?

Hi all, looking at starting a business for cash flow purposes + to leave the rat race.

Interested in seeing / learning if anyone has researched any business up to $250K to see what kind of returns are possible.

My criteria -

* Cannot be retail
* Cannot be 7 days
* Cannot be a Franchise
* Happy to work in it myself

Anyone ?

 

I think if you are looking to buy a business for the money, you’re doing it for the wrong reason.

If your not passionate about it. You’re just going to find it a drag on your resources.

I’ve never seen any ‘passive’ business succeed.

Blacky

 

I understand passion however try walking out of Coles or Woolies with a trolley full of groceries and telling the checkout person you are "VERY PASSIONATE" ...

I am after income ... if passion comes as a result that's great.

 

What are you good at @hillsguy ? What floats your boat?

Anything can be turned into a business...

 

You will not get much other than wages plus a smidge for that price.

A lawn mowing business or something like that.

Basic wage plus a little bit plus a little bit of profit.

If you are entrepreneurial use that money to create a start up.

If not maybe the rat race is better. Running a business is harder than just getting a wage and going home.

 

The grass isn't always greener in the other side.

The right motivation needs to be there otherwise you're just exchanging one crappy thing for another crappy thing.

 

Never understood why someone would by a lawn mowing business or franchise @Ross Forrester

We started an adult apprentice last year. He was doing great but after about 3 months he came in to see me and said office based life wasn't for him, so he resigned.

He bought a second hand mower from Gumtree and registered a business name, all above board, legit and tax paying he went our door knocking and started with just a few nature strips and lawns.

That was late last year, he's now fully booked 4 days a week Mon-Thursday will all local, clients with regular spots on regular rotating days. He keeps his Fridays free to catch up from missed appointments in the week if the weathers been bad. He issues an invoice form his mobile before he leaves each job. He knocks back enough work to keep him going all day, 7 days a week if he wanted to.

Nothing hard or awkward, just mowing, whipper snipping, leaf blowing and garden border weeding, that type of stuff. Minimal outlay and running costs and he's loving life just now. Hard work, but all the fresh air you want and no franchise fee/cut to pay.

 

Exactly, son has done the same, he is at uni and has saved a deposit for a house. Has commercial clients and residential- all legit and started by putting a flyer on the local community board and a post on the community fb page. I would always be reluctant to buy a business.

 

If you have some entrepreneurial spirit you are always better off starting a business.

If you want to buy something for under 250k you will not get much. I think you are better off to use that money and create something.

 

I have done this through RE property investing and our other business. Some just don't understand it can be achieved but unfortunately it takes time, knowledge, and experience!
At first wished to replace both our incomes we earned...so learned what asset base we needed to grow too. Eventually modified the plans/goals and increased the asset base...now just continue to do what worked for us.
You have never mentioned the time frame so remember some of us invest into RE for that reason, for choice - to leave the rat race and do what we want with our time, for cash flow or income - alternative source of income, for capital growth - to grow our net wealth.
We had started our other small business over 25 years ago without any cash but we continued on with what we were good at and yes 'passionate' about, so we obtained the clients directly!
The 'passion' enabled us to preserve to continue, to not give up when the challenges or issues arose out of our control. I had found out many without that passion will quit and not withstand such circumstances. So even if you dislike this word 'passion', there is really an extra dimension to its meaning, without it no business can withstand its challenges and its competitors.
Find what you are good at, or see if what you do you excel at and see if you can turn it into a small business first...? If not earn as much as you can BUT INVEST into RE as a long term passive income generating business. Best of luck!

 

My first land surveying boss did this. From the first day i started working with him he said he wanted to start a small, local lawn mowing business. He never did though, we would talk about it every month or so on the way to fieldwork jobs, plan the whole thing, marketing, mower type etc. But it wasnt until his wife went through cancer and survived, until he realised life was too short and you need to follow your passion, before he took the plunge and started the business.

He's loving it, and is considering taking on staff. He says the biggest tip is communication, he says half his clients he got because a previous lawn mowering guy just didnt show up or call.

 

That seems to be the way for many businesses - you need to keep in contact. When that ceases, then the clients no longer see a relationship or the necessity.

 

whats the lawn mowing business like during winter or rainy season?

 

Don't know generally, but in my mates case he's still flat out. He has that much work to chose form anyway he can keep a fully booked week just with leaf blowing driveways and weeding borders and general tidying up.

Like LisaX said above, communication (and consistency) is the key. He is good at what he does now (basics generally), cheap and always shows up on time. He worked it so that customers have their own time and day slotted in in whatever weekly/fortnight/month interval and he has so much more work that he actually wants that people don't want to lose their slot.

For us, I use him once a fortnight for 2 hours. He's due today, he messaged me last night for a job list. I didn't actually have much for him this week but he'll still come and just do a bit of a tidy of anything he finds as I don't want to lose my slot, not that I would being a mate, but that's how others will see it too.

 

yes i think Blacky was onto something when he mentioned "Passion" for the business. Every business has ups and downs, busy seasons (old mate on the lawn mover in summer) and droughts. It's passion - that will provide the energy and discipline to see it through. No passion + no earnings - you're out of there during the drought, impatient to await the rains.

If you are on this site, property is probably a passion.
Then why not explore businesses with a "property theme", i would include old mate on the lawn mower in that category.

On another note. One of those self appointed experts on this site - wrote that "property investing is not a business". Maybe in his limited world view. Kook! Plenty of examples of managed property investment funds, property syndicates, or other investment activities - that operate as business models.

 

You haven't excluded speculating on crypto currencies, but, on balance, and not quite being a business, it might deliver (or not) the desired outcome....

 

Can it be hospitality?

I have an Italian Pizzeria in Northern Beaches Sydney
6 days 4-5 hrs per night turning over 14k per week for 110k. Can be run under management with existing staff

There are some inteesting businesses out there within your price range