They say everything comes in threes, so perhaps I shouldn’t have been surprised that I found myself interested in three businesses recently…
We’d just returned from an awesome six week trip to the States and I was focused on finding an ideal business, either for me to purchase or to showcase to you. But I hadn’t expected to find three interesting opportunities around the same time… especially when none of them accurately fitted my personal hit list!
My Mentor had wisely suggested that when looking for a business for myself, I should write down all the things I wanted from it, so that I’d find it easier to ‘tick or flick’ when I looking at all the opportunities currently available.
I decided that an online business (or three) was going to be the most suitable for me. As I see it there are three key benefits :
- I could work from home, from a coffee shop, or anywhere in the world!
- I wouldn’t have the overheads of a commercial premises.
- I could use online contractors rather than manage employees.
Plus, one of the exciting things about online businesses is that you would normally pay no more than 1 x EBITDA (basically the annual net profit), whereas for a normal ‘offline’ business you would pay 2 or 3 x EBITDA.
My first surprise ….
I found a very well run, local business with great financials and a meticulous, honest and ethical vendor. He and his wife run the business but it seemed to me that it was still a viable business if it were to be run under management and still give me close to a six figure income. It didn’t comply with my ‘no employees’ or ‘no commercial lease’ criteria, but my partner could have run the workshop if necessary, and the lease was month to month at a very low cost. The business also involved some interstate travel – that’s always good!
My second surprise …
I stumbled on a well established online business with a great niche. This one also shows good income and has been running for about 8 years. The couple who set up the business have done very well out of it, and enjoyed some overseas tax deductible travel too. Although it was his wife’s passion and she set it up initially, the husband is now working in it while the wife takes care of their small children. Hubby gave up his own business to run this one, but as it involves female clothing, it’s really not his core passion and he wants to get back to his usual line of more masculine work. With a double garage for stock-holding, this business could be run from anyone’s home rather than needing to rent premises. One owner working full time could operate the business … but again this one is viable with an employee too it seems.
My third surprise…
I walked into a shop that I’d never noticed before, about 10 minutes from home. It’s a Retro / Vintage recycled clothing store with two employees and a commercial lease commitment of almost 2 years plus a further 5 year option. The financials were not very exciting. The size of the store is good and the location is quite good too, although it’s not on the main street. No interstate or overseas travel potential here.
So, can you guess which one I chose to purchase?
No prizes this time, but just FYI it was the 3rd business!
Why? There’s a number of reasons but you could just call it ‘serendipity’ … in fact the business is called, House of Serendipity! It’s a great store – with lots of surprises and it’s located at Shop 4/4 Partridge St. Glenelg, South Australia.
I’m enjoying learning more about the fashion business and having fun with staff and customers – so if you’re ever in the area, please drop by and say ‘Hi’ 🙂