7 Businesses That Actually Make Money in Australia Ft. Vaibhav Grover and Hardik Shah

You help the people to find businesses.

Let's say they would not have a cash of

$500,000 or a million dollar sitting in

there, right? So, what sort of business

do you recommend for such clients? How

to make sure that they're not crap into

a business which is actually not making

money?

>> A $400,000

laundromat will generate you probably

about $50,000 a year. It will take you

probably about 8 years to get back. And

then a laundromat has a life span of

about 10 years. I have someone 50 year

old used to drive truck. tax lotto

something which is making you somewhere

about $200,000 in commission very less

business with very less headache because

you go in the morning switch on a

computer the receipt comes out

>> yes

>> somebody pays for it you give them the

ticket right in the evening you switch

off the computer switch off the lights

go away

>> so if someone sitting here today has a

stable income has good savings and has

the itch to do something more than what

they are doing with their job what is

that one step that they should take this

week.

>> I think the best step is they should

>> a lot of people I speak to whether it be

in it or be in corporate are asking very

similar questions lately. Should I buy

another property? Should I start a

business? Should I buy a business? And a

lot of people honestly don't even know

that you can also finance business

acquisitions. So today on level up with

Priyanka Sha, we're joined by not one

but two experts from their field. We've

got WebV Grover who's a business broker

and Hardik Sha who's a finance broker

and we'll be having a very real

conversation about all things business,

property, lending and also where the

opportunities might really be. We thank

you so much for joining us again. I

think it's the right time of the season

where everybody the negative gearing

talk is on the budgets have really

created negative sentiment for the

property owners. What is it for the

business owners? Is it the right time to

buy? what are your thoughts on it?

>> Uh thank you for having me again

Priyanka. Um again glad to be here and

yes absolutely the budget has caused lot

of ups and downs in the especially in

the business community in the property

community. People are now kind of

thinking whether they should buy a

property or not. They should buy a

business or not. They should even

continue to do business or not. So it

has become a bit challenging right and

again uh

what I think it's it's it's not the

people or the situation like there are

economic situations like the war and all

those things which are causing uh prices

to increase and obviously wages to

increase as well but then there are

certain things where the policies of the

government are not working

>> in favor of the people and

>> well the it's the people's favorite job

is to keep cursing the government all

the times

>> and uh I'll be cursing here a few times

as well because I think some of the

policies are not helping people. It's

basically the recovery of the money

which was given out in COVID and the

benefits which were given out which were

even not required by some people or even

which were not like people were not even

eligible for. So now that money needs to

be recovered in one way or the

>> other. So yes, so there is a bit of

atmosphere where people are not very

comfortable in uh kind of investments

and they but the other problem is

Australia's favorite hobby for

Australians is investment in property

right so everybody who works his first

job somewhere the second thing for them

is always investing in property. So, so

the property cycle will go on. Australia

is a growing country. I was reading

somewhere that there'll be probably

about 400,000

uh people who will be migrating in the

next 5 years from overseas. So again and

if you see

>> countries like Canada, US and even UK,

Europe due to the economic unstability

and due to the war um people don't want

to basically go there. So the other good

destination for them is

>> Australia. Yeah,

>> fair enough. I think uh that's uh and

definitely that makes sense. But what I

have been seeing especially with a lot

of people from our community they're

Indian migrants a lot of them are first

generation the obsession with property

was always the case it's being shaken up

a little bit and a lot of our community

are also IT employees like it was a big

thing and with layoffs being so common

and rampant AI is disrupting everything

and they're losing jobs affordability

crisis a lot of this is this still a

time where people should be thinking

about either creating a second source of

income through business or transitioning

through business. Is it still safe,

secure?

>> Yes, absolutely. And that is what I tell

everyone, right? You should always like

your your job will kind of help you do

the savings or invest in property, but

you always have something on the side

like a side hustle which basically helps

you even run your day-to-day expenses.

Yeah.

>> Right. So, I'm a big believer of

entrepreneurship, right? And I do get

people every day who ask me that um me

my wife or me my husband are working

what do I do um to get an extra income.

Again it I get a lot of calls from IT

people and they are in first of all

probably five seven years back they were

kind of afraid that their job will go

offshore and all that. So which is still

happening. The second thing now AI is

there like so your testers developers

their jobs are going away. So people are

scared that whatever investment we have

done we have bought houses we have

bought investment properties how will we

pay for them?

>> Yes. Yes.

>> Right. So I'm a big believer that people

should start something of their own

>> on the side which would basically help

them in kind of generating that extra

income. And some of the businesses which

we see are not very hard as well right

like people do ask for under management

businesses like car washes and

laundromats. Now I'm telling you

>> they sound to be very good right like

laundromats but the amount of investment

they require and the return of

investment is very bad on them. I'll

give you an example of $400,000

laundromat will generate you probably

about $50,000 a year. Right.

And in caseuge yeah that's not it will

take you probably about 8 years to get

back and then a laundromat has a life

span of about 10 years like the machines

in there. So if you are buying a

laundromat which has already done seven

eight years you might have to go and

replace the machines and all that right.

So again there are these good

investments and yeah you don't need to

go there you can monitor it easily and

all that but they are not making whole

lot of money right but on the side there

are other investments as we speak about

last time as well play centers which you

can kind of if you're working from home

take your laptop there you don't want to

replace a $20 employee who's standing in

the front and helping you

>> uh kind of because there are when I say

a $20 it's mostly 16 17 18 year old kids

who are there. So whatever you get paid

as per their 20 $25.

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securing your future. I think I want to

get deeper into this. If somebody's

looking to buy, so maybe I'm working in

an IT job, I wanted to get something. Is

there any specific business that you

shouldn't definitely do as a firsttime

business investor or that you should

ideally do if you're a corporate person

which is an easy transition? What is

your thought pick on that?

>> All right. So, here I'll give you a

scenario. All right. And for you and

your viewers who are watching,

>> imagine you enter a shopping center.

>> Now, which businesses you can buy? When

you enter a shopping center, what do you

see? All right, your Kohl's, Aldi,

Target, Kmarts, you cannot buy, right?

>> And then in clothing, cotton on and all

that stuff you can't buy. You can't buy

Louis Vuitton and

>> Gucci and Chanels and all that stuff,

right? Uh so those businesses you cannot

buy. But what you can buy is basically

food court, food businesses. Again, food

businesses I highly recommend people

those who are passionate about food or

at least have a bit of a background

because though QSRs are easy where we

say that Domino's, KFC's, McDonald's,

Pizza Huts, they can be run by anyone,

right? But if you are into specialized

food like Indian food or Mexican food or

even like Asian and all, you need proper

chefs and experience, right? So, you can

buy those in a shopping mall. You can

basically what else do you see when you

walk? You see post offices. Now some of

the post offices which are available as

well which are good investments. We do

have certain post offices as well. In a

post office sometimes you have tats

lotto.

>> Now tats lotto again very good easy to

manage business. I'll give you an

example. I have someone who's buying my

tats one of my listings for t lotto. He

is a 50year-old uh he used to drive

truck.

>> Mhm.

>> Life. He got bored of it. He doesn't

want to do it. Wants to spend more time

with the family. The wife is a

registered nurse. She basically goes 5

days a week. She wants to reduce that to

3 days a week. They have the money and

everything, their own house. So, they're

quite well off, but they wanted to do

something.

>> Tax lotto. Something which is making you

somewhere about $200,000 in commission

can cost you somewhere around $600,000

just depending upon if they have a gift

shop. I'm just taking an example of a

kiosk, right? When I said $200,000

commission, that would be the net

commission which will remain after you

pay your rental and all those things

which can vary as well, right?

>> So now what you have is you have those

$200,000 to play around with whether you

employ someone or you go there.

>> Sure.

>> Very less business with very less

headache because you go in the morning,

switch on a computer,

the receipt comes out.

>> Yes.

>> Somebody pays for it. you give them the

ticket, right? In the evening, you

switch off the computer, switch off the

lights, go away. And in some kiosk, you

don't even need to switch off the

lights. You're in a shopping center,

right? So again, that is something you

can buy. Then there are specialized

businesses which you see like

hairdressers,

>> right? So where you can go in there some

watch repair, key cutting, all that

where you require a little bit of

>> skill set and all that, right? And then

there could be things like bottle shops

in the shopping center. Again, not your

leaker land, BWS or Dan Murphy's. They

are own but independent ones like Bottle

and all those ones. So that is you can

buy and then

>> obviously there is nothing else in the

shopping center and outside you can come

in.

>> Petrol stations one of our most popular

ones which people inquire about. But

again I strongly recommend people to do

the due diligence while buying a fuel

station. Just don't go by what the

numbers has been provided you because

right now it's not the best business

which is kind of to get into with all

the electric cars coming in. Again the

infrastructure is not the best in

Australia. It will take time but again

you need to make sure what you are

getting into the shop sales and all lot

of fuel companies are coming with now

their own automated one. One is near

Chhatton

>> which is kind of you can see that one of

the fuel stations it's all automated and

you don't even need an employee. So

company would never sell that to anyone

because they are making the full money

self-service. So those are there play

centers as I said are very popular very

popular as well and then

like I do we do have certain models

where we have silent investment

opportunities for people in for example

play centers where they don't need to be

part of it but then obviously it's good

for them to come in as an investor

invest in it and then the store is run

by the company and we have done recently

a few deals around it as well. So those

are the businesses and then after that

you get into very specialized like cakes

and baking and kind of industry

manufacturing and then probably there

could be another good business I like as

I said in health and wellbeing is laser

clinics we are selling a okay

>> few of them again very good business

very popular right laser clinics and

other aesthetics related to beauty and

all that stuff you know how it's very

popular now with Instagram and people

want look young at certain ages as well.

So yeah, very popular and very good

money in there.

>> But then again that requires more

technical skills and you should have a

knowow.

>> But is it necessary because then it's

already run by the

>> So we are selling a few laser clinics

for a well-renowned brand as well which

has been owned by someone and comes

under like a franchisee. Right now these

are run under management. Obviously, you

hire nurses for certain procedures and

then you hire employees and it's all

being run under management,

>> right? So, you don't need to be an

expert at that. You just need to hire

the experts of that.

>> Sure. Fair enough. But what have you

been seeing especially with all this

chatter around negative gearing being

grandfathered? Like are you seeing

people transitioning from investment to

business? Are you seeing more inquiries,

more people wanting to invest versus

property?

>> So, see business has always an interest

to people, right? Especially Southeast

Asian, Indian communities, subcontinent.

These people have always come from that

background back in India, Pakistan,

Bangladesh that and they want to come

here. They are hardworking and want to

establish businesses especially with the

Chinese, Malaysians. I get lot of

customers right who want to establish

their business because in their head

like job was never there. They always

wanted to

>> come and do businesses. So with negative

gearing being grandfathered and all the

idea is that how you basically now save

taxes on your income. Right? So when so

the idea here is with businesses what

you can do is rather than saving it what

you are doing you basically take that

that income and try to invest in a

business right with businesses you can

basically now you can take a what would

I say a punt or something that that

income which was kind of negative dear

to you is now basically being taxed and

you invest that in a business and then

obviously if it makes you money that's

good for you if it kind of it's a bit of

risk as well like every business and if

it is not working for you you can

basically

>> close that business but

>> obviously coming back to your previous

question where whether you should do a

business I think everyone should try a

business and in today's world if

somebody's saying that I can open a cafe

and I can prepare a good coffee

>> right nobody's stopping you in promoting

it right you have Instagram Tik Tok

social media WhatsApp you can basically

make do marketing like free of cost,

right?

>> To make an account on Facebook, Tik Tok,

Instagram. It does not cost you money.

>> So, you should go in there, take a

business,

>> put your best in there, market it, try

it. If it works, it works. Again, when

you go into business, you need to be

risk averse that you don't take a

10-year lease and then you are stuck

with it. And so, you have to be very

careful.

>> Yeah. No, absolutely.

>> Around it. And yeah, so there is a high

interest in businesses after the budget

as well. So a lot of people are

inquiring about how they can kind of

diversify their portfolio because like

before the budget there was I have a lot

of buyer agent friends and they and they

come and give me the stories. Okay, this

guy bought his fifth property and sixth

property and all but that was all being

very good because you were trying to

leverage now even the

>> and and later our specialist Harik will

basically explain as well on how uh how

even your lending now has decreased

right like whatever like with your I

don't know exactly but like if your

salary was 100,000 you could have

borrowed probably whatever 500,000 But

now that borrowing capacity has gone to

400. I don't know the exact numbers but

heard from

>> so so your capacity has Yeah. So just

buying property after property after

property might not make the best sense

for you.

>> Yes. Yes. And imagine if you lose your

job, it's like all the dominoes will

fall, right? Because what you are doing

is you are obviously not making that

much money and if the interest rates

keep on rising with

>> the how the economic situation and

inflation is your rent will remain

stable. The rental laws are there which

protects the renters. Exactly.

>> Right. you cannot increase uh the rent

in two uh like I think the new law is

like you cannot increase the rent in two

years but but the government can

increase the interest rate every quarter

right nobody stops them from doing that

>> right so so you have to be careful you

have to diversify your portfolio where

you are putting in yeah buying property

is good cool you get capital growth but

we need to see whether

>> yeah whether it works long term as well

with all the changes

>> longterm or not otherwise

You try to sell it after 5 years you

have made 100,000. Yeah. Government

takes puts taxes on

>> 47% or Yeah. And then they $75,000 would

come as under taxable income and all

that. So you technically lose half the

money of what you have done there.

>> True true no absolutely but talking

about businesses specifically about

industries if you can just give brief

insights on all of them because again

people would have thoughts and lot lots

of options to look around when they're

looking at it but not much insight. So

NDIS is a popular one that's coming up a

lot and a lot of people and a lot of

migrants have been particularly been

talking about it. What are your thoughts

on it?

>> So NDIS

has been a controversial business right

lot of things you see on social media or

on news right and and government is

taking actions against us. People have

tried to rip off the system as well

which we have seen. So when we say that

NDI business is like some people are

trying to sell their licenses for 50,000

which is of no use. The idea is your

NDIS license or your business is as good

if you have providers.

>> Okay?

>> Right? Like if you have kind of people

who are giving you money to provide them

support services, right? So your

business is as good as that.

>> Right? Now when you go into NDIS

businesses again you have to do lot of

due diligence. Right? who has been

running it, how many uh providers you

have, what type of providers they are

because sometimes there are providers

who pay you $20,000 a year and then

there are providers who pay you $400,000

a year depending upon their condition

and situation. So those are there as

well where you have to just make sure

that the money which is coming is it

good or not. And then obviously what you

need to take care is previously I have

seen a lot of NDS businesses when they

come to us for due diligence.

>> We had seen that people have been

ripping off like for half an hour they

sending a $200 invoice for cleaning and

all that stuff. But those things are

being cracked down as we speak. I was

speaking to someone in NDIS and now they

are they were saying that they'll be

linked to the ATO and all that stuff. So

yes,

>> whatever their money that $400,000 if

you have a like high paying provider as

well all

>> all their dollars will be matched to the

invoices what are being provided and and

now AI and everything will catch

>> the mapping and the is very people who

are running NDIS businesses be careful

about all those things and the people

who are trying to get into it when you

go into when you're trying to buy an

existing NDIS business just try to do

the best of your due diligence but again

NDIS budget is almost equal to or even

more than medicare. So the industry is

very big. It's like $50 billion or

something. Budget was there last year.

So

very good business if you are a people

person. You can basically help people.

You can find the right support workers

but you can do things with due diligence

and being very careful and following the

protocols and everything then you will

do the right thing otherwise someday

you'll be get caught. Okay. So, it's

Yeah, definitely. Yeah, we want people

to do the right things.

>> Absolutely.

>> Uh what about car wash businesses? Any

>> So, car washes. Uh

I recently sold a car wash like two days

back. I had a post settled. Uh I'm

selling a few car washes as well. I have

a couple of deals which are going on.

Now, there are two types of car washes,

right? One is your automated car wash

which have the highest inquiry. Whenever

I put a car wash business for sale,

>> Mhm. 70% of inquiries are, "Oh, is this

a automated car wash?" Now, automated

car wash, yes, if you can find the right

one, very good. If you can find a

location built on it, good as well, uh

there will be demand. People will be

washing their cars and everything. You

just need to make sure that the rent you

are paying is kind of sustainable with

the number of cars you are coming. I'll

give you an example. We had an automated

car was coming in the inner city suburbs

of Melbourne. It's and when we did the

analysis like to the rent to car you

have to actually wash 60 cars every

month and there were like three days

>> so no sorry 60 cars every day to

basically make sure like the profit

percentage what you will save that will

basically cover the rent because it was

in a CBD location

>> and it's like the the traffic was there

but 60 cars

>> it's like a very high number

>> not every day you'd

So average if you are doing 60 cars a

day and you are making like and we did

some analysis like if it's like a $15

$20 automated wash and people come back

people are not paying more than that

>> for it and then you'll basically after

every expenses you would save like $45

and all that stuff. So that is how like

it was and the rent was like massive. So

so we did a due diligence for a customer

and we said that made not the right

thing.

>> Right. The second one are hand car

washes which are popular hand car wash

and detailing where people kind of spend

that money. They bring their car and

obviously when people have expensive

cars sometimes they feel that if those

automated car wash they might scratch

and all that stuff. So they bring to

hand car washes where you can do hand

car wash detailing. Now hand car wash

sprinka is not a car wash. It's a HR

business. So you need to make sure that

you have the right employees

>> right? So because and these people they

stick with you otherwise I have seen

that in winter the poor owner has to go

there and

>> clean because nobody's putting hand in

5°

>> of weather in a cold water.

>> Sure.

>> Right. And or obviously they want better

money for it. Right. People say we'll

drive Uber in the rain

>> rather than standing there and all that

stuff. Right. So

>> so so those are the things for car

washes. But again, good businesses if

you can find the right location.

Shopping centers are very popular

>> for those locations where because you

automatically get people coming in and

and people like going to shopping center

car washes because they can park the car

and spend 3 4 hours in the shopping

center and come back.

>> No, absolutely. But especially

what are you seeing?

What are you selling? Most of

>> Indian community again there are caf

restaurants.

People are asking.

We have been inquiries.

That works very well for Indians.

It looks very glamorous.

paid as a 9 to 5 worker

because again easier business

not that hard to manage

They are like Australians.

So that is what

centers

we do work with child care as well.

Is it people are coming from a job,

Pakistani, Bangladeshi, Sri Lanka,

Marketuss.

IT jobs

and everything

they are buying lot of businesses but

again similar

accounting experience.

These are like kind of selfmade

businesses.

Example,

we want to do something else.

childareian

restaurant

but owner Indian and it's run by and

they the best pizza.

So that is there. So lots of business

opportunities

again.

It's your accountant, your business

advisor, your financial broker.

There are certain good opportunities.

There are businesses but you have to

find the right businesses. Absolutely.

>> Again cursing back to the government

Victorian government is bringing out

laws which are kind of not helping the

businesses right

work from home law. work from home bill

pass or the work from home bill which

they are passing makes right for me it

makes no sense or even I have spoken to

so many people about it none of them has

come with a positive work from home why

would you require and you want to spend

your time and money in passing a bill

which nobody cares about right if I work

in IT after co I even if you go to those

>> which are who are in banks

>> who are in it different companies

>> they get even in HR and all that they

get work from home right twice a week

>> so their companies already offering them

right some of the companies have reduced

their office and said that okay we'll

pay you incentive for working they're

already there why you want to protect

someone right nobody stopping you from

working from home before co there was no

work from home

>> everybody used to come to office but

what would you do take an example again

shopping center what you can have a

hairdresser work from Yeah.

>> You go to your police, ambulance, fire,

what? They can work from home.

>> Hospitality. Nobody can.

>> Hospitality, cafe, what they can work

from home. I don't understand why this

why people are or why the government is

spending all that time, money, and

resources on things which don't matter

to people.

>> Yeah. It doesn't make any sense at all.

>> Yes. So, if somebody wants to work from

home, the company's okay about it.

>> That's it.

>> They'll do it. Right.

>> True. So, so those are there. And then I

talk about another business which people

never think about it's death related

businesses, right?

>> What do you mean?

>> Well, I'm also somewhat in the business

of deaths. No worries.

>> So, yes, you are in insurance. So,

again, so but yeah, so after the person

dies, what happens? Right. So, I have

met a few funeral companies and so and

saw their P&Ls and balance sheets and

amazing business.

>> Right. Now obviously you feel that okay

it's it's a sad business right you have

to deal with people who are like kind of

bleeding and all that stuff but somebody

has to do it right and and the margins

which they have are amazing people would

go and bargain on other things

>> but not

>> but on not on this one there are funeral

insuranceances being done which are like

somebody dies and so the pressure does

not comes on the kids fall on the family

they have already did some insurance

which is like worth 25 $30,000 which

cover their whole expense and all that

stuff and

>> these guys are making really really good

money.

>> Yeah.

>> Right. So uh so that is also a very good

business from a business point of view

not from

>> uh you will feel emotional point of

view. Yeah. you and you have to be

emotional as well because you might be

dealing with people who are coming out

of grief and all or speaking to someone

who owns few funeral homes and he said

the other thing what I kind of find

strange is that that people come for

grieving and all that stuff that is one

there but then sometimes they come like

they have died but then rather than

discussing the people who died they're

discussing about his property and what

he has left and they start fighting

about it that who that

>> property or money should go to and these

guys. So it it's it's a bit of a

business which is kind of emotionally

>> not very good or sad but then somebody

has to do it.

>> So that that business has amazing

numbers. So if you can find a funeral

home look at the numbers do your due

diligence and that might be

>> kind of a good business for you to run.

>> Very interesting because it's not

something that would occur to people.

>> Yeah absolutely. Nobody thinks about it.

So those are the businesses which people

kind of can yeah

>> to get into obviously you need to

understand the business as well.

>> If I have someone who's got 150 or 200

200,000 sitting in their offset account

>> what practically can they get and what

is the process? I think um Hardik has

agreed to join us for this conversation

as well. So he'll talk about the finance

things. You tell me about what sort of

options we can get and let's get into

that practical scenario. No, that's a

great question because everyone is

sitting with that type of money in their

offset $150, $200,000 where they will be

sitting in the offset and then they want

to start something. Obviously, it's not

risking their entire life savings and

everything, right? You you need to still

keep for next six to 9 months of money

in there and whatever you have. Then you

basically talk to an expert like

Harardik and say to them that we want to

basically buy a business as you go for

home loans right where you kind of

approach the broker and say that we want

to buy a million dollar house. So if you

don't take that if that and all that

stuff so that 80% you should basically

be get funded by the bank and 20% you

should have it with you right so so that

20% is $200,000 right and then that is

there business buying is very very

different and that is where we recommend

specialized uh bankers commercial

bankers like or brokers like Hardik

where they can they understand how to

read the PLN balance sheets and they

obviously are better informed about how

much you would get if the business is

making and if they have certain P&Ls and

everything and how much you can

basically secure against your property

because business loans are unsecured.

>> Yes.

>> Right. So banks require different type

of things and I think hardik can detail

shed some light on that. So RJ, we just

talking about someone having 150 to

200,000 sitting in the offset account.

Uh what can they do like how can they

get a business? What sort of lending can

the banks offer? And Weber will share

about what sort of industries

potentially we could get with that sort

of money set.

>> Yes. So weber uh a lot of my clients are

actually looking to increase their

income and they want to get off their

job thing because they feel it's not

having that security not having that

flexibility and they want to earn more

money you know for their hard work. So

uh

you help the people to find businesses.

A lot of them are not able to spend

let's say they would not have a cash of

500,000 or a million dollar sitting in

there, right? Uh they would need a loan

which technically they can get a 50%

loan on the business purchase price. So

what sort of business do you recommend

for such clients? What to look forward

in those businesses? How to make sure

that they're not getting or trapped into

a business which is actually not making

money.

>> Absolutely. So I think as I was speaking

to Priyanka right obviously people have

$150 $200,000 sitting in their offset

and obviously you need to make sure that

there is 6 to8 months of money sitting

in there like their emergency funds

which they can keep aside and then have

this money right with businesses as we

get unsecured lending right so you

basically cover them with the property

and all right now any business what we

say in the industry indry is like any

business you buy on an average like

standard businesses not every business

has about 2 2.5 up to 3x of return right

on their AIA right so if you buy

something worth $200,000

right uh so you want that return in

about 2 years time or 2 and a half years

time and all that stuff right so so you

oh sorry so when you have a $200,000 ABA

that business might cost you 400 to

500,000 right so you will get your

return in two two and a half years. So

the idea is for these people as you are

talking about different industries again

depending upon the business and we

always recommend very high due diligence

right again what you are passionate

about if you're passionate about food

there could be opportunities for cafe

restaurants cafe restaurants they start

at like even $50,000 chatt say right but

then you have to make sure whether why

that guy is selling for $50,000 because

is it not running or are you coming in

and you can probably do something better

what this guy could not

Right? And then there are these

businesses which are kind of making you

a $500,000 business making you about

$200 $250,000 a year. You basically see

the numbers. This could range again

coming back to like play centers even

tax lotto uh post offices smaller ones.

Uh these are kind of more the safer

options and then you have even petrol

stations are there supermarkets are

there. There are a lot of IGA food works

which we sell depending upon how much

sale they have.

>> But the most important thing is

you have to see whether how much efforts

you have to put. If I'm having a

$150,000

job, I don't want to buy a business

which generates me $150,000

including my salary and I take all the

headache of making sure that I'm 24 by7

engaged in there. I'm better off a job 9

to5 Monday to Friday, right? And go on

holidays as well. Yeah.

>> Right. So, so those are the things which

you can need to take care of. Australia

again as we are talking to the landscape

is not very businessfriendly. We we we

try to tell people that you have to

basically find yourself in there through

marketing or I was talking to a shopping

center manager yesterday and I said uh

and he was talking about like businesses

are struggling a bit and I said admmit

you should change your timings from 9

to5 from to 11 to 7

>> who comes at 9:00 and shops clothes and

all that stuff right people drop kids at

9:00 right so do it from 11 to 7 and see

how it can change if you see someone

like Chadston shopping center very smart

people you go there I think Thursday

Friday Saturday they are open till late

>> Sunday they are open till late and you

see the amount of people after 7:00

there

>> right so so coming back to your question

yes there are businesses it's you need

to make sure your P&Ls and uh what are

they making check their post reports

check uh probably see the competition

around

>> how it is

>> I always strongly recommend trials in

businesses right So you should take a

twoe trial and see

>> what you can do there because again it

should suit your lifestyle as well.

Right.

>> Sure.

>> What are it is still a workable number?

>> Oh absolutely because I I think you give

probably put a light how if I have a

$500,000 business how much money would I

require?

>> See again there is there are banks who

would be able to fund money to buy the

business because even the bank uh makes

money from this. they don't mind but

they want equal contribution from the

applicant. So there are certain

criterias for business loans where if

the business is for 500 they would not

mind going house which is they will give

50% on certain uh franchises certain uh

uh reputed businesses such as Australia

post or IGA McDonald's uh you know they

would not mind Subways they would not

mind going 65% as well because they know

the numbers are always better uh but

from the client point of view they need

to come up with that 50% or 35%. Now

it's not always cash cash. If they have

got equity in the property or if they

got another business which is similar to

that that has got no mortgage, they can

leverage that business as well to borrow

more money. So it all depends on how

they come up with their cash

contribution whether it's equity in

property or their current business. Uh

that all can be factored in and if

overall it makes sense to the bank that

you know what it's less risky I've got a

fallback strategy. They then happy to

work uh through the transaction. The

experience of the applicant running the

business is very important. They want to

check how good is the business acumen.

Can they run the business? Someone doing

running as a truck driver planning to

now open up a cafe bank may not support

unless until he has got a strong backing

of properties because there is a high

chances of that person might not be able

to run a cafe who was doing truck

driving before. So that experience is

very very important from the bank's

point of view.

>> What are the interest?

>> So this can be completely unsecured.

Let's say if you have no security,

you've just put in your half and you

want to borrow half. Uh there are banks

starting from somewhere close to 10% to

12% as well in that range. But because

this is completely unsecured, high risk.

So if something goes wrong, if the

business is not successful, the bank

loses their money as well. So that's why

it is as good as and if you have got a

security or some equity and things like

that then the rates have been priced

accordingly but business loans are very

great. Nothing is black and white. They

have got standard policy uh with the new

income how much can you afford? Have you

got more liabilities? Can you service

everything? Who's going to run the show?

What experience have you got? Management

uh are there is that done management or

no? uh you know the fallback strategy.

So a lot of gray areas but yes the key

thing is if the deposit is there then

the banks are keen to sit down and talk

on and work around solutions on the

other things as well you know so that's

why that is always the key thing where

people think it's like a property I can

buy a business with only 10% or 20%

deposit and that's it yeah but that's

actually not the case

>> equity and all those things can help

>> yeah yeah yeah

>> and that is where I kind of recommend my

clients to find because like how they

because you need to have a commercial

understanding we I'll take an example

where I think how they helped that

client afterwards like they basically

hired someone like who helped them buy

the house and all that and then what

this broker did is like there was

certain P&L which was provided and he

just straightly sent to the bank and and

the bank rejected because he thought it

would work similar to like a home loan

right but obviously when you present the

case there has to be kind of adbacks in

the business because these guys had like

couple of cars and all that stuff and

everything where people want to have

that adbacks and you need to give a

story to the bank on how the business

would be run and everything. So you

always advise that find a good

commercial broker not always your

residential broker can help you.

Property is easy right as compared to

business. So you need to understand the

P&Ls, balance sheets, how to present it

to the bank as well. I think as rightly

said uh there are bankers that we work

with and we have got strong relationship

with lot of bankers within different

banks who also helps us to present the

deal in such a way that it becomes

favorable it becomes in the client's

favor making business plans or cash flow

forecast or you know uh how they going

to run the business after taking over

those things do matter a lot in getting

uh the loans approved but I had another

question for you uh a lot of the clients

are not planning to go full-time into

business. Their intention is I want to

continue with my job. I've got bit of

flexibility. I've got bit of a time. I

want to make more money and I think

instead of starting anything from

scratch, a lot of people are getting

into the time where oh existing business

I can run which can be like cafes or

restaurants or something else that maybe

after hours or that can be managed with

a full-time job or a part-time job. So

what do you suggest them or what sort of

business they should look at or how can

they run it because they think they can

do it maybe there it it is not easy at

it may sound as well you know so what

things that they need to be mindful of

before getting into some any businesses

as a part-time business as well

>> that's good question I think and and

this is what a lot of people ask me as

well right now with part-time businesses

there are a lot of opportunities like

from donuts to boost juices to ice cream

shops which we sell to bubble tea

franchise. These are small businesses

who can buy them for $150, $200,

$250,000.

They have a set SOPs which are there,

right? Nothing hard like ice cream will

come from somewhere. You basically have

a scoop. You give the scoop and easy

operation. You can hire basically school

kids, right? Any uh one above 14, 9

months, I think that's the age or about

15 years, you can hire them in the

business and obviously kind of keep them

under guide. Right? Now if you are

working 9 to5 and all that so you don't

need to go there all the time right you

might go there like in the afternoon

just to check up on things over the

weekend just to make sure that when

there is lot of traffic right you are

there to support your employees. So

those are the businesses which you can

start with. The other one which I was

talking to Priyanka in the start is kind

of we we do have certain businesses

which we kind of bring silent investment

opportunities. The idea about silent

investment opportunities is that you

invest at a certain percentage and you

become a silent investor or owner in

that business right you don't need to

work in there as such the company will

run and support you become a shareholder

and support the shareholders right but

the good idea is that we are doing it

for one of the play centers and you know

why I got the company convinced on doing

that because company we'll run

everything and all that stuff we can go

and borrow it from the bank but That's

not the idea. The four investors who are

coming in will actually understand be

with you for one one and a half year.

They might end up buying that particular

business after we do renovations and all

that, right? And these guys are now

understanding the business being with

you for the next one year, right?

They'll be getting every month your uh

report, sale reports minus expenses.

They'll be coming to the business to

look at thing. We might give them

opportunity to even work in the business

over the weekend or something right but

then the thing is that trains them next

time if there's a play center

opportunity they know in and out how to

read the numbers

>> right so they become more confident in

buying a business now we are doing this

for uh child care as well we are doing

this in play centers and then certain

there's a laser clinic where we are

bringing in investors as well right but

the thing is when you are someone being

guided by someone Right? Obviously you

make your money the plan is all there

not that you lose money and all that

stuff but technically you are making

money plus learning something

>> right. So the next time you go into a

business you are much more

>> confident about it. How about the

legality of this or for example someone

putting in money how safe it is for them

because you're not the owner owner right

you are still an investor which means

you still don't have any decision power

>> correct

>> uh what sort of returns approximately

you could expect and how can they

protect their investment

>> so uh when we present you that model

it's basically data backed right so we

have already implemented that in

previous stores and we are bringing

bringing that. Okay. And this is model

like for example whatever money we are

placing we are using for renovations.

Renovations means that a play center is

now 10 years old and we are bringing in

new more fun equipment. Right? So when

and we basically present the data which

has been existing for other stores. So a

store in Queensland or Sydney when it

was renovated with same amount of money

now their sales are from the last one

year like this much right and these

sales now the AITA increases and this is

the value of the play center today and

with similar AITA this is what we have

sold in the market for so it's kind of

more data band which we are working on

right the risk legality business is

risky right like as you invest in

property you never know what will happen

you have bought a house it burns down or

something and Insurance does not give

you money then it's your loss. So with

business as well again if you buy your

own business you doesn't work well but

what we try to do is when we bring in

people it's kind of you have to do your

due diligence we want you to take your

financial advice from accountant your

legal advice from lawyers we provide all

the data and everything and if they like

it and they get it. So it it it can

sound like a more investor opportunity

but we make them more partners rather

than investors because at some point of

time like for example I had in one of my

investments I had someone who basically

came back in 6 months and say that m I

like this I want to tape over it

>> cuz I think this is a very good segment

now with what's happening around the

budget where the property market may not

give them the returns the share market

has got again capital gains so people

who want to do business have got the

money but may not have the time. So for

them this is a very good opportunity

where they could invest their money and

they could get what probably 12 15%

return

>> probably about 20 25% return per year if

it does well as per the numbers and

everything but again as I said rumors

that it can vary as per the market

condition situation and all those things

and then what we say that is that this

money once you are confident in it right

like people do lot of like we work with

acreages as well so there are a lot of

people who do syndicates friends

together they get syndicates. I have

friends who are buying like we sold one

of the tax lotto which was bought by

four friends right so people try to do

all those things as well but here we

give them a like a safer environment to

do that but again as I say to everyone

I could be the best in running a

business and then I get another

opportunity and I might lose money

>> right so so you always have to take

everything with a pinch of salt but

>> you you can go south but obviously when

we try to take an opportunity or bring

an opportunity like this, it's it's it's

very kind of data bagged and

>> I think I think uh again it's like a big

company and they have shares you just

buy their shares. you're kind of

investing in the company. You don't know

what's going to happen. It's going to go

up or down. But with your model at least

it is small businesses or whatever it is

more involved. Uh you probably would get

know the owner and you know the

businesses and the processes that you

would not have been able to do it if

you're buying shares of BAP or someone

else's. Yeah. Correct.

>> So at least this way they are getting

more exposure to learn businesses how

that operates and all those things. I

think the key thing would be for me or I

think for most of my clients as well uh

the person running it how trustworthy

and how good as a person would be. So uh

that's what we do are I'm not running it

it's not somebody it's not me you or

Kriyanka will be running it's the

company who has been running a business

from so we basically put the company's

skin in the game as well.

>> So if they are running you and then if

you have to judge their kind of

capability they have been already

running three four successful corporate

stores.

>> So what they are doing is so everything

is handled by them. It's not handled by

me in particular that I have to go every

day and open the door and shutter and

like basically look for the marketing

everything. It's it's it still runs as a

corporate store

>> on how the company would run it

>> and everything is transparent to those

investors in terms of the numbers and in

and out whatever it is.

>> So you get every month reports and all

that and and see it's again it's not

like a very big investment or something.

Investments can range anywhere between

$50 to $100,000 per shareholder, right?

So, so overall like 300 400 $500,000

raise internally. So, it's it's not like

more of a investor investor model. It's

more of like we are bringing four or

five people together and they are

investing right rather than three

friends who came from India were staying

together and now investing. It's

something similar right you because you

know four people you basically bring

these four people together and then

invest in a business

>> and they could do this transformation.

Yeah. But the good thing is that it's

not that uh that all these four people

who are investing they have done their

research as well. They have even looked

at the numbers and and the idea is see

if they become successful this syndicate

can do another project as well.

>> Right. So that is why I have people like

I have had a

>> syndicate of 35 Telu people right from

Hyderabad right and they are who invest

in property or business and everything

but they are all together all IT

>> background right so

>> so there are opportunities where people

want to invest so and as I say like

you're not putting like rather than

putting half a million dollar by

yourself and thinking that okay whether

I'll be able to run a business yeah put

$50,000

>> and try

>> learn it try it if it becomes successful

in one

So learn to swim in a swimming pool

rather than directly jumping in the

ocean. Right.

>> And I think with that transition model

of probably owning one in the future as

well, learning and investing, I think

it's a very good model with people

looking for returns.

>> Absolutely.

>> They don't have much options left.

>> Correct.

>> Uh what is the ideal business net profit

that you should be looking when you're

reading a profit and loss of someone

buying a business? like very variable

question right depending upon the

business as I said your return again

depending upon business something like

tats and post which are easy to run and

hard to get like a post office would

have like 4x of the valuation of their

aita so something like if it generates

$200,000

you might get it for like $700 $800,000

a tax lot for somewhere about $600,000

right a bit I mean that after expenses

and and all that stuff, right? What is

remaining with you as a owner if you put

your wages in there as well,

>> right? So, that is there. But something

like a cafe runs on 1x 1.5x as a cafe

which is making about $200,000

probably might get it for 300 350 right

to a play center which is about 22x.

Fuel station again very variable

depending upon whether it's a heavy site

and you can expand it and it's a new

site which is coming.

anyone uh looking to buy a business or

let's say they have found something can

you help them in terms of as a

consulting correct absolutely so we we

have uh some service where we have

consultants or business brokers and

advisers who can who who have even done

businesses similar to that right I have

someone who's an expert at fuel stations

because he used to own three fuel

stations with himself and then obviously

he understands the business very well

right uh I myself help with lot of play

centers right with due diligence. I have

someone who has owned cafe and

restaurants in hospitals and they can do

the due diligence. So sometimes what we

say is that again your accountants are

there for your due diligence and your

lawyers are there for your legal advice

but for business advice you always say

to them that like for example you

present it to an accountant right uh a

P&L he'll just go by the P&L he doesn't

understand

>> how a business is running

>> right yes somebody when you ask me that

question that how much should be the

profit right

>> a profit in a $200,000 to generate in a

cafe is a lot of headache Right? The

amount of time you have to spend chefs

cost of goods you are running every day

to get the material you are doing

marketing and all that stuff to generate

similarly $200,000 for a tad slot is

like you come in the morning switch on

the computer in the shopping center and

wait for people to come right no cost of

goods nothing you don't have to pick

everything you don't need to be

dependent on employees it's like no chef

required no like even like I can go and

stand there I can put my dad there right

I can put my cousin like who is

basically a student come who's 21 22

year old he can basically work as a

part-time there you can

>> easy to run

>> easy to run easy to understand

>> right

>> and again in cafe you have to manage

cash you have to manage payments

customer reviews and all that stuff in t

nobody gives you a Google review right

and what he gave me the ticket I give a

fivestar review or no he was not very

polite right there is no things like

that right So, so, so that's why I said

like a $200,000 AIA cafe might sell for

300, but a $200,000 ABA with Tats Loco

might sell it for

>> 600.

>> The time and the effort.

>> Time and the effort, right? Somebody can

do Tats Lotto being part-time as well,

but cafe, I don't know, cannot run it

part time. But I think also with your

experience the you can tell is there an

opportunity to increase the sales or

somehow reduce the cost because these

are the two most important factor to

increase your bottom line. Yeah. Which

is either sales goes higher and there

are might be ways that the current

operator may not be doing which you

might have spotted. You know what he

hasn't been doing takeaways a lot or

whatever. They could add this this this

and that could increase

>> Uber Eats and all that

>> you know. So again accountant can't tell

you all those things.

>> Correct. They can only

>> business advisory comes into play where

we say to them is that okay there's a

business similar to you which is doing

like uh we we say that okay this guy

they are retiring now they never run a

social media because they obviously

don't understand that but you can

basically get up every day in the

morning spend 5 minutes make an

Instagram tik tok

>> right and then yeah sure

>> you might get more customers right so

business advisory when people come to us

it's not about just looking add the

numbers. Obviously, we try the product

that your accountant will never go and

do a trial with you. We actually go and

do a trial as well. We have mo people.

We have caught petrol stations who are

lying on numbers because they were

scanning one box of cigarette every day,

right? We have had veggie shops who were

lying on their numbers because they were

saying that 50% of our sale is cash

which basically is not possible because

nowadays people don't carry cash,

>> right? Yeah. we we have had different uh

things coming up which obviously from an

accountant point of view and again I

>> I don't say that people do that but then

people are there there is a few

percentage of people which try to

basically play around with the numbers

as well right which again our our idea

is to protect you as much as possible

>> exactly and I think people now are using

bias agent for example right for their

services

>> they are adding value no doubt but when

they're buying buying a business and if

they're buying one, whether it's through

your business or someone else's business

online or in Queensland and if they're

not having a business advisor to guide

them for whether to buy or not to buy,

it's a very foolish decision because

without your help, there could be x

number of things that could go wrong,

you know, and they would not even know

that, oh, I got the wrong figures and

then you can't do anything much about

it.

>> And people try to do that. There are

people because they want to save a

business broker's fee. They list it on

Facebook marketplace, right? That I'll

have a business worth about $200,000.

>> I'm not saying the seller is basically a

bit foolish here. It's the buyer who's

actually looking at it and going in

there and thinking that okay, I'll buy

it. I have had buyers who have

approached my sellers directly and

saying that okay, we'll buy directly

from you and all that stuff. Right.

Because they think that they benefit.

Yeah.

>> Right. Yeah. So they'll they'll miss it,

right? Though we try to do due diligence

from our side before we put a listing in

there, but it's not kind of our job to

totally look into it. We are seller

representative. It's like real estate

agent. They are listing a house. They

might tell you that

>> to do the building inspection

>> is not their job, right? You have to

come and make sure that whether

something is cracking and something is

not there. The builder wouldn't do it.

No, but that's a good that you do offer

that service whether it's your business

or whether they buy anything they can

still approach you to hey I want to buy

this business can you help me to do the

due diligence

>> and that is the safest way where yes no

whether we should buy or not you know

>> babe thank you so much for your time

today but before I let you go there was

one last question that I wanted to ask

you so if someone sitting here today has

a stable income has good savings and has

the itch to do something more than what

they are doing with their job. What is

that one step that they should take this

week? Not this year but this week.

>> I think the best step is they should

book a consulting with a business

advisor. So someone like me or many

other are there in the market who have

businesses come discuss your situation

and we can help you out and helping you

judge as well that how much you should

invest or what's and how much you should

basically spend time it or whether you

should leave your job or not

>> to get into business.

>> I think I agree at least they should

have that thing to take that step at

least talk

>> someone to hold hand and guide.

>> Correct. Absolutely.

>> Sounds perfect. Thank you so much again.

Thank you Adi for joining in.

>> Thank you for coming in. Thank you.

Thanks guys. Bye.