Wigan Warrior

I've just returned from my trip to oz and whilst we were in Port Douglas the sun, sea and beer got us thinking about other options available to us. We already have permanent residency visas (now stamped!!) but instead of doing the same job different location, we started to think about the possibility of a completely fresh start and maybe buying a business (we had consumed a lot of alcohol by this point and were passing estate agents with cafes etc.. for sale).

Most of the businesses did not include buildings so I was wondering how easy it is to get a business loan in Oz to help purchase a business (we'd only have around £40k to put to it), especially as we don't really have anything to secure the loan against other than business name/fixtures.

We've never run a business before, but hey no harm in investigating all avenues however unrealistic some may be

walaj

my thoughts would be, it is a change too far (but you may view me as being risk adverse).
There is so much to learn about being in a new country, that to add to that learning about the ins & outs of a business, how to run the business, the market for that business, what is a fair price is etc that wrong decisions now, or rather better informed decisions could be made a little further down the track.
The risk adverse in me would say at least one has perm job to guarantee income before starting to develop biz plan/buying of biz.

It would depend on atitude to risk, plans to say buy a house or other commitments like children.

Centurion

The thing about buying a business is that they are rarely for sale for the reasons that they are advertised. If they were that great they would not be.

Of course, one in a blue moon you might find something thats a genuine tale but other than that....buyer beware.

Besides, I have never found it that hard to simply start a business if you wanted to and have a neat idea.

hoofie2002

If you don't have any other assets to secure the loan against the banks won't really want to know unfortunately.

Franchising is another possibility - perhaps you should look into that.

fly2hi

Ditto....all of the above.

Think about the sort of business you would like to run and then find a job in one. Even if the money is crap, it will tell you everything you need to know and could save you making an expensive mistake. As long as one of you is earning decent money it may be worth investing the time to find out if your dream is achievable...or in fact desirable. Best of luck whichever way you go.

Wendy&Mike

We have been here 4 years. We have made lots of mistakes in that time. The idea of buying a business just after arriving makes me shudder. Spend a year (or 3) getting used to the way things are here. It is so much different. Don't be in a rush.

Mike.

Wendy&Mike

P.S. Avoid franchises.

Mairead

If you were looking at going into a business my advice would be to start small. Have you considered an internet business?

FluffyTheCampfireSlayer

I disagree with you on that - there are some excellent franchise opps available in Oz.

If this is your first business it is an excellent way to start out.

Pommysteve

Buying a business downunder at anytime can be a daunting prospect, no matter where you are. Some will say, as indeed they have on this thread; the move alone is stressful enough, let alone start a brand new enterprise. But in response I would say back in 2001 I persuaded my wife to quit her recently promoted senior associate position with a leading city investment bank for not only a brand new life downunder but an entirely new career. Oh and only 12 months before she had given birth to our first son.

By and large we found our business surfing the net. Having identified half a dozen possible ventures I flew out armed with just my video camera. That was February 2001. By June of the same year we took the keys, and lease responsibility of a brand new business. We now have three branches employing a workforce of 21. So mate, if you believe you can make the business work, run all the figures over carefully ... just do it. There is no good or bad time to start and you may as well do it all at once. Yeah, okay so the first 12 months was a huge learning curve, what with all the forms Aussies love to have completed but looking back it wasn't that daunting.

Sounds obvious: Taking on the extra load of starting or running a business should NOT be your main concern. Checking the business out thoroughly, seeking sound advice and doing the research ... focus on that. Good luck to you in whatever venture you choose.

Pommysteve

Sorry, forgot to mention. Business loans - Australian banks [generally] are not as flexible as some UK one's. Securing a business loan without security [bricks/land] can be tricky. I say "tricky" not impossible. We even own property back in London, with heaps of equity, mortgaged with HSBC ... yet HSBC Australia wouldn't even loan us the capital to expand or buy another business! But here's the good news. BankWest [I believe part of the Bank of Scotland] will provide a mortgage for certain leasehold businesses. I know this because we have just done it [so don't let anyone tell you otherwise!] The security is the leasehold. They won't do it for all businesses nor all leases. I'm told [but untested] that ANZ will also advance capital finance. Expect to pay however around 9%+.

Wigan Warrior

Thanks for the info, much appreciated.

Wendy&Mike

Franchises are for people who want to be self employed and still work for someone else.

I hate the fact that so many businesses here are franchises. Take Harvey Norman, you can't get an online price because they're all in competition with each other - you can even play them off against each other.

Mike.

Timber Floor Au

Show on at mo, cpl in Port Douglas set up a shop... just a small touristy place...

shop and sav over 1 mill !

DrWho