offer accepted!

I just read the whole thread, awesome!!!

i'd like to know a little more about how and where you search for business.

the advertisements on realcommercial.com are quite brief, how do you go about requesting more information and what would you typically ask for?
 
Hello Marc,

I am aslo thinking along your lines, property investing has been brilliant at creating wealth but also now looking to use that equity to purchase more business's as the cashflow can be amazing and complete the jigsaw.

Unusual question for you, don't feel obliged to answer.

I had a friend show me a business plan last week about tyre recycling and ask for my opinion as he is thinking of investing. I have absolutely no idea about the industry. I am not considering it but would like to provide some feedack to him.

The plan basically involves charging tyre business's less than they currently pay to have the tyre's removed. Apparently for outer melb the normal charge is $2 per tyre but they believe due to their whiz bang system of "coiling the tyres" and carrying more per truck they can charge $1 per tyre and hence get quite a few contracts. They also believe that they can extract more from the tyres than others, fuel, gas, black carbon and some metal thing as well plus get big environmental grants.


As i said I know nothing of the industry however the business plan was not written very well and the expected wages for staff were way below reality so that put me off a little but some feedback on the concept would be very helpful.

Any words of advice I can pass on?

Cheers

BT

G'day Tone,

we currently pay $1.38 for car tyre removal and $3.25 for 4WD tyre removal.

If you can get it to $1.00 and keep it near that for the forseeable future, then I'm yer first customer!

Our guys come around every fortnight to collect, and I pay them C.O.D by cheque.
 
Marc, out of interest, is it the case that you don't know how to trim quotes (in which case I'm happy to give a lesson :D), or that you can't be bothered?

It doesn't bother me excessively, but I do notice it, and your practise of quoting the entire post when most of it is irrelevant conflicts with my perception of you as an organised and competent person. :eek:
 
Marc, out of interest, is it the case that you don't know how to trim quotes (in which case I'm happy to give a lesson :D), or that you can't be bothered?

It doesn't bother me excessively, but I do notice it, and your practise of quoting the entire post when most of it is irrelevant conflicts with my perception of you as an organised and competent person. :eek:

Trim quotes? I usually add 50% if the work is "urgent".:D
 
Trim quotes? I usually add 50% if the work is "urgent".:D

Ha, that's what I was thinking at first too! Though Perp makes a point, not so much with Marc, but it really bugs me when someone quotes an 800 word post, just to add "well said :)" at the bottom! Just quote the first line people. :eek:
 
Congrats on your sucsess bayview!

Good on you with the expansion, i guess my only words of advice would be to make sure you have a good cash buffer in case of a down turn in your current businesses

Regards,

RH
 
Marc, out of interest, is it the case that you don't know how to trim quotes (in which case I'm happy to give a lesson :D), or that you can't be bothered?

Got it in one Trace - can't be bothered most times.

Sometimes I pick the eyes out of a post and answer it accordingly, but not always.
 
Hey Marc,
Hows about an update on the buisness??...

As summer is quickly approaching, as well as Christmas, are you expecting a massive rush from customers, especially to get their cooling systems checked/serviced etc...

Bet its been a massive learning curve so far! Good luck, hope it all runs smoothly for you.:)

Boods

Believe it or not, our best month since I took over last Aug was this June.

Summer doesn't really improve things for this business; most of our business is locals who need their cars serviced and tyres.

In summer, many are away on hols, and we get loads of tourists around Dromana. :(

They all have their cars serviced up in town near home, so we dont get them; we only get their panick button work; punctures etc. Small crap.

lots of work and not many big dollars as a rule.

Things like air-cons etc are mainly the "blow-ins" and are spread out.

We make jokes about the Sat morning after the Friday night of a long w'end in summer - all the tourists will be queuing up to get their boat trailers fixed after the drive down which finds out that they haven;t maintained it correctly since last summer... we get them; and most times they want it fixed yesterday, for $5 and the parts are impossible to get. :D

So, we don't open on Sat mornings on a long w'end. Waste of time.
 
I just read the whole thread, awesome!!!

i'd like to know a little more about how and where you search for business.

the advertisements on realcommercial.com are quite brief, how do you go about requesting more information and what would you typically ask for?

No real scientific secret on that score; just on r/e.com.au businesses for sale, a local business broker and occasionally The Age.

Once I see something of interest, i contact the (mostly useless) agents to send me the business financials.

Once I have these, I evaluate the numbers and go from there.

i've put in some low offers on some places; get rejected mostly. Laughed at on occasions.

Oh well; move on.
 
Bayview well done on all fronts
I recently went for a trip to Adelaide and one night getting back to the hotel we noticed a mechanic shop open. Next day we went for a stoll to check the place out.
This mechanic opens at 4pm[i think] and operates into the night. bookings weeks in advance.
This made a lot of sense to us as no body wants to be without their car wether its mum, dad or a business vehicle.
How many small businesess struggle to get their vehicles serviced/tyers check/changed during business hours?
I would imagine you would pay a bit more for this night service.
Probly have to be a bit of security involved?
I thought it was a great example of value adding to a business.
Now if only l was a mechanic:rolleyes:

cheers
 
Bayview well done on all fronts
I recently went for a trip to Adelaide and one night getting back to the hotel we noticed a mechanic shop open. Next day we went for a stoll to check the place out.
This mechanic opens at 4pm[i think] and operates into the night. bookings weeks in advance.
This made a lot of sense to us as no body wants to be without their car wether its mum, dad or a business vehicle.
How many small businesess struggle to get their vehicles serviced/tyers check/changed during business hours?
I would imagine you would pay a bit more for this night service.
Probly have to be a bit of security involved?
I thought it was a great example of value adding to a business.
Now if only l was a mechanic:rolleyes:

cheers

Makes sense as many people can't get there during work hours in Metro areas.

The biggest issue I see with it is getting parts. Unless he is keeping a massive stock of every type of oil filter, air filter, brake pads and so on...

A lot of times we find we don't know what we are going to need for a car until it's up on the hoist and pulled apart. We keep stocks of all the main and popular make items, and luckily we have parts delivery runs throughout the day.

The only other way I can see him doing it is to get the cars in, do inspections to see what's needed and re-book them for another day and order parts in the meantime. Not ideal, as customers want their cars done in one visit mostly.
 
G'day Tone,

we currently pay $1.38 for car tyre removal and $3.25 for 4WD tyre removal.

If you can get it to $1.00 and keep it near that for the forseeable future, then I'm yer first customer!

Our guys come around every fortnight to collect, and I pay them C.O.D by cheque.

Thanks Bayview,

I will pass that on, my mate is very keeen to invest. He thinks if they get it right they would be bought out by a big company pretty quickly.

Cheers
 
So what happened to BayView? still in business i hope?
Yes.

But, whole industry is in a downturn currently.

My dream has not been realised to this point - I bought the business with the intention to have it managed and to be able to "buy" myself a semi-retirement and work about 20 hours a week, pull in a 100k wage, play golf a bit more and love it.

The reality is we have halved staff, and I now work full-time and then some.

Still pull in the wage I wanted, and I don't have to work weekends anymore, so can't whinge too much, but I'm sick of still being stuck in a 50 hour plus per week like I used to be, and having to deal with whinging deehedds who want their Corolla to be a Roller and spend 5 cents into the bargain to keep it in tip top shape, or; won't spend the 5 cents, and then want a miracle to be performed (also for the 5 cents) when the pile of cr@p blows up.

Sorry; ranting.
 
geez, i was reading the whole thread all night.

so do you think the previous owner knew this was going to happen so he offloaded it, did you atleast make back the money that was put in already? i take it's been about 3 years owning it?
 
geez, i was reading the whole thread all night.

so do you think the previous owner knew this was going to happen so he offloaded it, did you atleast make back the money that was put in already? i take it's been about 3 years owning it?
He was retiring after being in the business for 40 years or so...has since died of melanoma in his big toe, of all places.

I haven't made any money other than wages since year one - no profit dividends, and haven't been able to make a dent in the loan for the business purchase. The plan was to have the loan paid off in 5 years...

So, we are totally cash-strapped for any future investing purposes (unless doing those seriously dangerous exotic property deals - which I won't do).

We have another unit that has been sitting vacant for a year almost, because we need to do some repairs on it and a reno - approx $16k. Don't have the dough, and so the rent doesn't come in from it - double whammy.

Every rep tells me that the industry is hurting; people are simply not spending as much on their cars in any shape or form...

Still lots of folk buying new cars of course - but all on finance and then they don't maintain them. They're seduced by the ads and low finance terms etc...

We see it a lot; the new car which is now at 30k and hasn't been serviced since new, or the slightly older version with tyres down to the steel belts, and so on.

This is one of the reasons why when folk sprout on about how good the economy is, I can tell them that it is really not that good.

You might argue that a car is discretionary spending, but it still needs to be maintained, and when that stops, you know folk aren't dripping in cash.
 
That is a bloody shame i was hoping you would have got another shop by now 2-3 years to pay it off with those nett returns.

I guess you could be doing alot worse and shutting it down but still going , the economy is crap & if it wasn't the rates would not be where they are right now simple


I sometimes wonder about a purchase of a business looking at one my self but i only look at business's that can pretty much run on auto even with less return and maximum of 10 hours per week to look after, looking at the ''auto'' car washes self service ones i think they are a great idea if in the right location busy road.
 
Well - I must admit I'm as guilty as the next person.

We do ensure tyres are always safe ... service was due 4,000km ago but I must've missed a service by 5,000km at one stage, so I'm just stretching it out to the 70,000km service ...

There still seems to be a lot of spending on "self" happening - massage, therapy, romantic weekends away etc but not so much on "things" or repairs
 
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May I ask, has turnoever dropped from the point of purchase, or did it increase and then go back to the same?

I assume now that you have been doing it for a coupleo f years, that you now know when the busy seasons are, if any

if the whole industry is hurting, then at least you have the comfort of knowing that its got nothing to do with your management skills, or business acumen

Ted;969980 I sometimes wonder about a purchase of a business looking at one my self but i only look at business's that can pretty much run on auto even with less return and maximum of 10 hours per week to look after said:
Thats the mistake most people make , Not saying Bayview made this mistake, I have spoken to him years ago and he knows his stuff!

Most inexperienced people think business' run them selves, in reality 99% of them dont. Im a hands on person and I ask myself, would the business survive if one day, the entire team decided that they had enough or you had a big fight, and walked out, which does happen, especially a small business.

Imagine you had a restuarant/cafe where the food reputation was good, and you couldnt cook if your life depended on it, and one day head and only chef walks out! you have to either do it yourself or replace him. There goes your business, a slow undignified death!
 
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