Why are we here today?

11% of Melburnians are planning to move to Regional Victoria in the next 3 years

A further 39% would like to move there ‘one day’

Employment is one of the major issues affecting their planning of their ‘Sea-change’ or ‘Tree-change’ dream

What if there was a way of buying your own job, to enable your move to happen?

It’s called buying an existing small business

We are here to take you through this viable route to gaining the regional lifestyle you and your family are looking for

The alternative to finding a job and working for somebody else is to buy a ’job’ and work for yourself

BUT

How do I buy a small business?

Undertaking this process is like undertaking any major project

It requires a plan, with clear goals in mind

Here is an overview of 6 of the key steps to guide you (there are at least 13)

Owning and running a small business won’t be for everyone – but maybe it is for you?

1. RETHINK JOB ‘HUNTING’

Buying a small business is another way to secure a job

And, employment is not what it was

Outlook for employees less certain

Job options decrease with age

Fewer opportunities in regional areas

Explore this by researching and talking to as many small business operators as you can before “jumping in”.

2. IT’S A MAJOR PROJECT

It involves research, analysis, phone calls, meetings and lots of disciplined follow up

Allow 12-24 months from starting

Ebb’s & Flow’s happen – emotions, change’s of heart but stick at it!

Done well, you will have the choice of more than 1 business to buy

3. WHAT’S FOR SALE?

SO YOU NEED TO

Lots of cafes and food related retail

But more important to know that many businesses that might consider selling aren’t listed for sale

SO THIS PROBABLY WON’T HELP

Hunt – i.e. make direct approaches and ask around

Be clear about what types of businesses suit you and target them?

4. HOW MUCH TO PAY?

Objective = determine (1) what’s left for the owner after everyone is paid and (2) how sustainable is it?

Tax returns and financials don’t tell the story

So know what other information to ask for

5 years side by side on a page – this is not about complex accounting and tax – it’s about cashflow !

We know most of you aren’t Accountants - but with some effort you can break it down

5. WHO DO I NEED TO HELP ME?

Experienced advisors essential

But not necessarily your existing ones

There is a right time for advice

Advice vs opinion – know the difference and be clear what you ask for

6. FINANCING OPTIONS

Banks – security is key

Financiers – Plant & Equipment, Debtors, Stock

Seller (vendor) finance – still formative in Australia – note diff. b/w deferred terms and performance based

Friends & Family

Your own equity – hopefully improved by the lower cost of regional housing

Best result will come from a mix rather than just one form of financing

Potential / Upside:

Invest your capital in your venture

Control of destiny

Can create growth opportunities

Pitfalls:

Down to you and only you

New experience (employee to self-employed) may take time to adjust

We’ve helped lots of people through this process – while never simple, it can be incredibly rewarding

So give it serious thought - it might be the difference!

Examples of what you might find

#investinparadise

Examples of what you might find

Online lifestyle retailer

First time offered, highly profitable.

http://bit.ly/1LamFmt

Established e-commerce platform - wine industry (potential in other verticals)

http://bit.ly/1fcxMhq

School photography franchise

Member of successful national franchise. Established 19 years. Experienced staff. Suit buyers with management, sales and business development experience

http://www.kerrcapital.com.au/opportunities#school photography franchise

www.kerrcapital.com.au

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