We are in the process of selling our bussiness, unfortunately the bussiness has been for sales at 500k (this is what we owe)
For about 6 months but in order to get a sale in this current climate we might need to take a 50k to 100k loss.
Our bussiness is set up as family trust an my wife and I are only 28 so we can recover quickly.
It’s a bit hard to swallow but we have learnt allot, if we get a sale my PPOR loan will increase by the loss but our accountant has advised that the loss can be claimed for future ventures.
You may get a better price for the business if you offer some form of vendor finance. A couple a friends of mine just bought businesses in Qld with vendor finance. One was a plant nursery, the other a fish & chip shop.
You could offer to vendor finance the whole business, via an Instalment Contract or a Lease/Option, or you could offer to partially finance the business with Deposit Finance. Either way you do open up the purchase of your business to a lot more people and because it is a business, the transaction wouldn't be regulated by the National Credit Code.
Hi every one, We are in the process of selling our bussiness, unfortunately the bussiness has been for sales at 500k (this is what we owe) For about 6 months but in order to get a sale in this current climate we might need to take a 50k to 100k loss. Our bussiness is set up as family trust an my wife and I are only 28 so we can recover quickly. It's a bit hard to swallow but we have learnt allot, if we get a sale my PPOR loan will increase by the loss but our accountant has advised that the loss can be claimed for future ventures. Any one ever had a hard hit in bussiness
I read somewhere the other day that the rich will always loose at least once, the only people that never loose are the poor (except in the long run). Good luck for your next venture.
I've been lucky more times than not. And thats from the years of experience .. the bundles of books .. and learning what i've got into and how to operate it the best.
You win by trying. You may not succeed the first time around .. but you take a snapshot at what you've done .. and stick it up there on the wall as a prime example of what you are capable of. Its a learning experience .. and you need to realise that you only move forward by trying. And not being afraid to ask people for help along the way.
Nothing succeeds better than success. And if you think rich .. even a bump on the road is just a learning blip on your road to ongoing prosperity.
Doesn’t sound that bad if you are keeping your family, youth and health! Bought a few houses in that range 50-100k discount from previous sale price in the last year, some crying vendors but it’s really just a question of changing perspective in most cases, still a lucky country!
You already have the recipe for success, the youthand time to apply it, and now you are merely seeking or choosing the correct suitable vehicle.
Since you keep getting up one more time than you go down, and learning the depth and location of the potholes by personal experience, you will always finish in the up position. As you strengthen and consolidate your business interests, you will avoid the potholes and experience only slight undulations as all experienced and successful business owners do.
And there are plenty of mentors here, that’s what we’re doing now.
Enjoy your unavoidable and inevitable success.
I think the states in either Think and Grow Rich or The Millionaire Next Door was, every billionaire goes bankrupt on average 3.1 times.
I think we've all made 'horrible mistakes' financial and personal, what I find to be the dividing line between those that succeed and those who don't is their attitude and perseverance. I meet so many people that are burnt once and rain hail and thunder on those who try it after them.
I have spent the last few days preparing an exit strategy, basically it is a spread sheet that states for every 10K hit we take on the sale, how will our lifestyle change or be effected.It is a spread sheet that ranges from a 10K hit to worst case scenario of 170K. My current PPOR loan is 90K and we have a bit of savings in place. So if our loan went up from 90K to 260K my cash flow position will only change slightly Why? I bought my PPOR three years ago for 280K + stamp duty and my home loan was about 270K, I was on a lower wage, less experienced in business and less educated on making money.Know, earning a higher wage, no other liabilities, my wife is on a good income as well, and most importantly we are more educated on how to make money.Know it is great that we have a exit strategy but what if the business does not sell then what? Rather than hoping on a sale (in this climate it might take time) I have also planned a list on what changes we can do to the business to increase revenue and decrease cost. I have identified that our shop space is to big vs the amount of income it is producing, so I spoke to the landlord and we may look at splitting the shop into two lots,This means our rent could drop between 50% to 60%. Will see what happens within a couple of weeks but i am not going to end up bankrupt stuff that i will fight these conditions
I lost $100 000 a few years back on running a music festival,
because we were still hoping tickets would sell on the day, it felt
like we had lost it in one day when the realisation came at 6pm that there would be no more
people coming through the gates,
so know exactly how it feels!
Not a good feeling but it does wear off over time, it’s only money
and it teaches you a lot!
My brain is finding solutions to make this back
The anxious part is waiting for some one to buy it
It could take time or it can happen quickly
The money part does not worry me,
I’m more excited about moving on to bigger and better thing ls
When we were actively seeking a business,
we found many of the businesses for sale provided poorly presented P & L’s.
The ones we looked harder at provided the following :
Clear comparative information which made it easy to compare the last 3 years in any category of sales or expenses,
Good reasons for selling which did not reflect adversely on the desirability of the business,
Genuine upside potential with clearly defined opportunities and explanations why the vendor had not already done it themselves,
Figures guaranteed by the accountant and vendor,
Due diligence cost refunded if figures incorrect,
Access from accountant to accountant,
Enough photos to tempt us to visit, more if required,
Offer of refund of overnight accommodation for visiting purchaser who settles,
Other incentives could be :
You pay extra $5K or $10K commission to a broker who sells within time and price guidelines then the brokers will prefer to showcase your business before another,
Additional training or handover time for a buyer,
Local accommodation for the first month while buyer finds somewhere to live,
Experienced staff willing to stay on as casual for 3 months until converted to full time,
It all reeks of an honest deal with a motivated vendor.
Just some suggestions FWIW.
Good luck Johann.
One of the business brokers told me once that he sells the benefits of the location in terms of local lifestyle and local amenities, social life, medical facilities, golf course, transport, infrastructure etc, as hard as he sells the actual business itself, because if the potential buyer doesn’t like the area, they won’t want to live there and are unlikely to buy.