jayne3411

Hello everyone
Hopefully someone can help me out there. Oh nad myself have state sponsored business visas for western australia. We have validated the visa last year, just needed to sell the business this side to free us up. Here comes the questions we have viewed a few businesses albeit online, how genuine are these accounts in your experiences? Can we borrow money to buy the business out there? (what with exchange rate would like to hold off transferring it all till it improves). What's it like running a business in oz, is it all red tape or do they actively encourage businesses?

The business we are looking at is a fish and chip restaurant and also have details for a childs indoor play area with cafe? Obviously the fish shop will probably do well. In the uk children's play areas do well but oz? with the weather do you still use them as much?

Sorry for all questions but any feedback would be appreciated, taking three children and it's not going to be easy with them either


Thanks in advance

jane

Carbery

Are your visas 160 / 163? If so make sure the business has the potential for the required employees. We own a retail business in Queensland and just over 5 years ago were in the same stage as you - looking at potential businesses online. I dont want to scare you but its not advisable todo any research until you arrive. There are a lot of unsrupuless business brokers out there ready and willing to sell bad businesses to cashed up, newly arrived poms.
Before you start looking at businesses first look at the structure of your entity - sole trader, Pty Ltd, family trust, are all options. To make these decisions you need to appoint an accountant, solicitor and develope a relationship with a bank. All will help you set up a structure which is best for your circumstances.
When all is set up approach brokers who advertise in newspapers or business magazines and set up appointments at their offices, not a coffee shop or the like to assertain they are a strong broker. When looking at businesses (I can only speak on retail) dont take any figures as the truth,if you are interested ask for a full set of audited accounts from the last 3 years plus tax returns for the business, BAS statements and personal rax returns from the vendors. Give these to your accountant and he will perform a 'due diligence on the figures and will report back as to the viability of the business. Any vendor who is unwilling to produce such figures has something to hide and I suggest you walk away. Also if the price is to good to be true it probably is.
Banks are still lending money but only if you produce figures to support the viability of a business.
Australia is great for independents and once you find the right business with hard work you will prosper.

Any mor questions dont hesitate to contact me.

Good luck

HelenTD

A lot of businesses are sold as coming with existing customers - be wary of that one, as it can mean that a hamburger or chicken place is opening up down the road and will take some of the "customers" you've paid for. Or, there is some change to the road system, making it hard for people to get in and out of parking for your business. WA has just seen late trading available from Mon-Fri, and Sunday trading everywhere (only allowed in a few suburbs at the moment) might not be far away. If a major shopping centre, with its food court, is open 7 days a week, would a fish & chip shop nearby get much business? Any of these things can affect the viability of a business.

The price of fish is very high here, and a lot of people can't afford to eat it as much as they want. Are people going to carry on eating a high fat food (although grilled fish and salad combinations are available)?

Think about your lifestyle - are you going to be happy working most evenings if it's a fish & chip shop? If one or both of you wants the evening off, you will have to pay large amounts of money to employees to run the place for you. We like the occasional bit of fish & chips - I've noticed that the busiest nights are the really hot nights in summer, when no one wants to cook, and people like going down the beach to eat fish & chips. Do you want to be stuck inside on a very hot night, sweating over hot fat?

Indoor play centres - I've been to loads of these. All are open 7 days a week and I think there's a cafe in all the ones I've been to. Are you happy working with kids? How about running birthday parties? These places are very popular in winter as the rain really buckets down in Perth, most winters that is (drought situation at the moment). They are also very busy in summer, as it's too hot to play outside. The noise level is high. I would imagine that insurance costs are too, as well as cleaning and maintenance.

Which suburbs are you looking at? Do they have the right demographics for your business to work? You will need to a lot more homework.