Forum Replies Created
I have been following with interest any discussion re Lease options.
Here are the links to getting a Credit Providers License here in WA
http://www.docep.wa.gov.au/cp/dev_publications/forms/credit/2002/A4%20CP%20indiv%20app.pdf
http://www.docep.wa.gov.au/cp/dev_publications/forms/credit/2002/A4%20CP%20explan%20guide.pdfI have been through it.
Seems pretty straight forward if you can demonstrate experience and sufficent asset base to
meet their requirements.
No more difficult that a restrictd mortage brokers license & business certficateChris Gray
Michael
just one further comment on franchises.
Franchises offer no guarantee of business success.
In very many cases they have the same basis flaws
as most small businesses…just duplicated!
It is imperative that as an owner/ intending owner you understand the financial fundamentals
A franshise can be an expensive way to to find you and are they don’t have them.
This is not to say that there are no very good franchises…there are….more importantly you need to know what you are looking and to be asking the right question…due diligence.Chris Gray
[email protected]Hi Michael
I advise clients on this stuff …often retrospectively!
IMO the process is exactly the same as being in property.
Through research is essential to avoid
the pitfalls, of which there are many.
Most common issues I come across are:
1.Owner knows nothing about the business they are buying.
2.The ‘ask’ on the price of the business is double its value.
3.Prospective owner has no idea on how they intend to add value to the business.
Business is just like a house…you wouldn’t sell for the same money or less…but they do.
4.Business must be cashflow positive or can be in a very short time…max.3mths.
Otherwise for an underfundered SME will just chew working capital real quick.
5. Most small businesses have no value in the balance sheet…no retained profit after they have paid themselves…which means it is of no value to a buyer or the bank as a funder.
6.MUST understand the financials…ROI, working capital required, cashflow and have daily KPI’s.
7. MUST have a great team that work together which includes business coach / a management accountant / book keeper and mortage broker.
Your tax compliance accountant has an entirely different focus.
My experience is that owners surround themselves with various advisors that all operate in isolation to each other which is not helpful.Hope this helps
Chris Gray
chrisgray.com.au
