Buy an existing fish and chips business?

Hi everyone,

Is anyone out there looking for a business partnership or know where to look for one so they can get started in buying investment properties? I have just obtained an equity loan from ANZ bank for $100K and am now looking at ways to really start investing. I have an investment property being rented in Quinns rocks at the moment which is barely CF+. I am 38 yrs old, single, lived in Perth all my life, have a good credit history, self employed parttime
and am now keen to buy an apartment to live in and start an outside business. I am considering buying an existing fish and chip shop here in Perth that operates 4pm-8pm (6 days) and turnover is $5K p/w. Asking price is $90K. I havent looked at any of the details yet as i need to find a business partner who can split 50/50. At the end on Nov my dads friend asked if i would like to
check it out. it is run by a couple of elderly Greeks who wish to retire and sell up. I contacted a friend i knew from a few years ago at my last job where i was downsized and he says would be interested as a partner although i found out he has now sold his house, spent the money and has for the past few months worked in kalgoorlie as a water cart truck operator on a flyin-flyout
casual non-permanent basis. He says he has missed several credit card payments due to his being away so much. He tells me he he got caught up in the interest rate rises on his mortgage and due to the stress had to sell his house and then lived overseas for a couple of years until his funds ran out. I am  toldn he would not be able to get financing even an unsecured personal loan due to having a credit impairment, recent employment (<6months) and no other assets. Is this true?
Perhaps he may be able to work in the business part-time as he is very good at kitchen work. My main objective is to buy a business (hopefully one that does well!) work in this for 5 years and
at the same time buy my own apartment and live in it. During this time, i would also like to buy another investment property and rent it out and then buy a larger fish and chip business or other business that does not require my presence. My background is office work due to my accounting/marketing qualifications although i was downsized
and started in self employment which is now part time in an unrelated field. I had intented to become a chef for a while and started a certificate in commercial cooking at TAFE
but i figured it would be best if i started a business and have a rental property to save on taxes. I investigated a courier delivery business with Messenger Post, Fastway and Courier Australia although
ruled it out after realising my road navigation skills are not the best, very long hours and having to register as a company.

Other ideas i have considered are:
1) Lunchbar - Not very profitable?
2) Subway - very expensive
3) Krispy kreme - If it comes to Perth but still very expensive!
4) Jims VIP handyman - Not much experience here except some renovations on the Quinns house
5) Organic food shop
6) Boost Juice Bar

I read on this forum that a franchise is not a good idea as the franchisee seems to benefit the most? Anyone else pursuing a business partnership in Perth so they can also start investing in property and get
ahead in life rather than working for an employer?

Thanks in advance
Robert

Franchising can work well, but it is restrictive for you in many ways; you can't use your own creativity to run the business, a chunk of your turnover and profit goes to the Franchiser. The upside is you have good support and ongoing training etc (hopefully).

You are simply buying a job in many cases, but they give you great knowledge in running a business properly and you can use that for other ventures.

One of my mates now owns 2 Brumby's stores. He worked his arse off for several years in one, doing all the crap shifts etc, then bought the second one and worked harder, but he's laughing now.

Another guy I know started with one small 7-Eleven , and now has a very big one with excellent turnover.

Fish and Chip shops are crap hours and hard work, but usually good profit. If you don't mind the sacrifice then go for it.

Cheers,
Marc.
erardent@hotmail.com

"we get sent lemons; it's up to us to make lemonade"
www.whydoislice.com - for all the golfers out there!

Thanks L.A Aussie for your comments.

It's great to hear your stories of those people you know who have done well for themselves and in particular the franchise industry.
 
I found out today that the fish and chip shop in manning road, Manning, Perth just got SOLD for $120K and the new owners bought the land to go with it! Boy that was quick.

I thought about the hours for a fish and chip shop and  they do seem crappy hours. Since my potential business partner is in dire straights with his finances, it would not be possible to include him in my business plan.

A cousin of mine is in the real estate business and she does flipping for a living with her husband. They have been on the move from house to house in Perth for the last 15 years and now Melbourne as they buy one property, use it as their PPoR until they sell it, make a profit and move to the next one and repeat this process over and over. What a crazy lifestyle considering they have 2 kids who have to keep changing schools! On the plus side, they have made millions this way. 

I like the idea of making this kind of money but not the lifestyle! One idea i had would be the same as many other novices in property who would find rundown properties to renovate and then sell. Best case scenario: My renovation skills would be the typical renovator type such as paint walls, tiling, replace carpets, update kitchen and bathroom with new fitouts. Worst case scenario: Could not do major fitouts and structural changes. 

It looks like i'm going to have to get more active in figuring out what the next step i am going to take. Find a business partner, in what business line, invest in property. Decisions, decisions...

Going back to a 9-5 job is not too appealing and every time i come back to this forum to seek ideas and advice, i get the investor bug and realise it should be business and investing in property or if employed be a high income earner and buy property.

I will start looking at apartments for sale in Perth and start making some offers on them i reckon before starting a business. Can't afford much over $250K and am taking on board the possibility of interest rates hiking up to the 10% mark over the next couple of years.

Glad to see someone has replied...
Thanks
Robert