Best business to invest in

[alba]

Hi fellow forumites....

I would value your opinion. I am contemplating the purchase of a turnkey business in order to diversify. I have a range of work and business experience and also willing to learn new skills, have a bit of free time to work in it but would like to buy one that is fully managed with a reasonable yield. I'm thinking of the food industry, started with gathering info on bakeries/cafes....any suggestions?

Thanks

 

[PrimeCommercial]

I'd think long and hard about the food industry for a couple of reasons

*Preparation and cleanup time. Sometimes staff starting at 2am ready for 8am open or closing at 5.30pm and paying staff an extra 2 hrs to clean up.

*Strict handling and preparation regulations

*Generally speaking food industry is labour intensive

I have a retail business where I arrive at 8.55am and leave at 5.35pm.

I've been in retail for far too long but my next business will involve little staff and little contact with customers. My life would be so much easier if I didnt have to deal with either.

I'm thinking for my next venture to cross business and investment, Something like Kennards Self Storage.

 

[alba]

I'd think long and hard about the food industry for a couple of reasons

*Preparation and cleanup time. Sometimes staff starting at 2am ready for 8am open or closing at 5.30pm and paying staff an extra 2 hrs to clean up.

*Strict handling and preparation regulations

*Generally speaking food industry is labour intensive

I have a retail business where I arrive at 8.55am and leave at 5.35pm.

I've been in retail for far too long but my next business will involve little staff and little contact with customers. My life would be so much easier if I didnt have to deal with either.

I'm thinking for my next venture to cross business and investment, A storage like Kennards Self Storage.

Thanks Shady, you're right, this is why I am after a profitable turnkey business where I can have as much or as little input as my health/family situation allows for. Not young enough for working 24/7.

 

[The Y-man]

Hi fellow forumites....

I would value your opinion. I am contemplating the purchase of a turnkey business in order to diversify.... would like to buy one that is fully managed with a reasonable yield.

What sort of budget are you looking at?

Would you consider buying into a fully managed business with resonable yield, but without any (or very limited) control in the way the business is run?

Cheers,

The Y-man

 

[Perp]

would like to buy one that is fully managed with a reasonable yield

I am after a profitable turnkey business where I can have as much or as little input as my health/family situation allows for. Not young enough for working 24/7.

I get the impression that it's exceedingly rare for a business to be able to be fully managed from the outset; even very structured franchises etc need lots of hands-on involvement to get going. If you're not aware, geoffw is a subway franchisee - perhaps you should PM him.

 

[alba]

What sort of budget are you looking at?

Would you consider buying into a fully managed business with resonable yield, but without any (or very limited) control in the way the business is run?

Cheers,

The Y-man

It's great to see all the different points of view, yes I would consider a partnership but not without control. Budget is about 350K.

 

[alba]

I get the impression that it's exceedingly rare for a business to be able to be fully managed from the outset; even very structured franchises etc need lots of hands-on involvement to get going. If you're not aware, geoffw is a subway franchisee - perhaps you should PM him.

I would prefer buying a business as a going concern and would ask for training as I want to be able to understand the whole structure and I don't mind getting my hands dirty it's just I don't want to become a prisoner in my business again.

 

[alba]

Sofar everybody seems to be conviced that the food industry is'nt the way to go, so is there any business that you would put your money in?

 

[The Y-man]

Sofar everybody seems to be conviced that the food industry is'nt the way to go, so is there any business that you would put your money in?

I've yet to come across a truly turnkey "off the shelf" business that is also fully managed.

I know Geoffw spends a lot of time in his Subway shops.

My relatives run medical centres - but they still need to spend a bit of time at them.

When I ran my trading business, it involved a lot of hands on.

The only other businesses where I have put serious money into have been where I have had no say in the running of the company - i.e. shares in listed and unlisted businesses.

Cheers,

The Y-man

 

[geoffw]

I don't mind getting my hands dirty

In that case, the food industry is DEFINITELY not for you

I got into this because I thought that it was a high profit, low hands on. I did my due diligence- but I've since found out that you need to be a LOT better at business, preferably with years of experience, before you get into something like a Subway.

The people who I've seen who make the business profitable with little intervention are also ruthless. I cannot be. I prefer to treat people like people.

 

[Simon]

The people who I've seen who make the business profitable with little intervention are also ruthless. I cannot be. I prefer to treat people like people.

This is a very valid point. I too am a soft hearted bloke like Geoff, perhaps even more so

But employing people in your own business is tough. Every cent you pay them comes off your own profit. Every sick day they take comes off your bottom line. Every time they need to leave early etc etc

I would find it hard to say no to any reasonable request. The most successful employees of staff need to put their bottom linbe before their people when they need too.

I would dread having to sack someone - even if they deserved it!

I know that being an employer is not for me. Not unless I change who I am and I don't wish to do that.

 

[Sunfish]

There's always vending:

http://www.somersoft.com/forums/showthread.php?t=42412&highlight=vending

 

[geoffw]

The most successful employees of staff need to put their bottom linbe before their people when they need too.

And so do employers of staff

I hate having to sack people. I always find it extremely stressful.

But, on the one hand, it can be even more stressful having people who are continually absent from shifts, don't turn up, or in some cases, leave work in the middle of the peak period without letting me know (that happened yesterday). On Saturday, I had no spare staff at all, and had two people absent- I had to do the job of two people.

But on the other hand, I cannot find the people. I cannot fire some of the people who are unhelpful at a minimum. I used to advertise, get lots of people, and hire a few. Now I have to hire just about anyone who turns up for an interview (which is about half of the people who get offered an interview). Even then, some of those decide not to turn up for the job after all.

Some of the employees of today will get a very rude shock when the market changes (as it will eventually). They have come into employment where they can dictate their own terms, and when the tables are turned, they will not be able to cope. At least, that's what I tell myself.

I do have to add- some employees are outstanding. But those ones tend to move on to better things.

 

[PrimeCommercial]

I would dread having to sack someone - even if they deserved it!

Trust me, when they deserve it, its pretty easy. Especially when they have been stealing from you.

 

[Simon]

I guess that is because you hire mostly unskilled people Geoff? If you were hiring professional people then perhaps you may expect a higher degree of respect towards your business and yourself from them?

Maybe older people may have a better work ethic? But I think you mentioned at another time that customers expect a smiling young person to be making their meal rather than a grumpy bugger like me?

 

[PrimeCommercial]

...... so is there any business that you would put your money in?

Yep, mine!!!

http://www.healthylifesevenhills.com/

Time to move on me thinks.

 

[Simon]

Trust me, when they deserve it, its pretty easy. Especially when they have been stealing from you.

Sounds easy - I would be wondering what made them need to steal .....

I just haven't got enough **** in me to be a ruthless business owner. But I understand those that do and even admire them for it.

Perhaps you need the skills of a psychopath to be an outstanding business owner these days?

 

[The Y-man]

Sounds easy - I would be wondering what made them need to steal .....

I just haven't got enough **** in me to be a ruthless business owner. But I understand those that do and even admire them for it.

Perhaps you need the skills of a psychopath to be an outstanding business owner these days?

Hi Simon,

Would it not be the same mindset as that of a landlord with regards to tenants?

Cheers,

The Y-man

 

[Simon]

Hi Simon,

Would it not be the same mindset as that of a landlord with regards to tenants?

Cheers,

The Y-man

I agree. Most of use use PM's as a buffer.

I self manage my student place and have raised the rent once in 5 years. Well overdue to go up again but I will only do it for new tenants.

 

[geoffw]

I guess that is because you hire mostly unskilled people Geoff? If you were hiring professional people then perhaps you may expect a higher degree of respect towards your business and yourself from them?

There's a lot of GenY attitudes coming across in many (not all) young people. A job is as much a place to socialise- or even to get laid- as a place to earn money.

Maybe older people may have a better work ethic? But I think you mentioned at another time that customers expect a smiling young person to be making their meal rather than a grumpy bugger like me?

I have not had a great success with older people. Their work ethic may be better, but their performance (so far) has not been as good.