A few weeks back I posted something about how I want to work differently. At the time I outlined a couple of business opportunities I was exploring in relation to that. I can now update with the latest developments.
Second things first. One of the business opportunities – which I can now reveal was based around vertical gardens – is now unlikely to go forward. The woman who pitched it to me is still keen, but the first choice option she put to me 6 weeks ago looks like it’s dead in the water. I met with her again 2 weeks ago, and she put to me plan B. Plan B is nowhere near as exciting – plan B’s generally aren’t. She promises me a 20% return on investment, but that’s insufficient as is given the risk involved. My desire is to lock down residual income, and require a share of her business- in the order of 20-25% – to keep me interested. She’s amenable to that, but then there are problems with the plan B option. I’m sure it would make a return, but a lot of product would need to be pushed to make it worthwhile – I’m happy to start at $1K/month initially after the settling in period, and more over time.
I put a proposition to her. I don’t think there’s enough money in it if it’s marketed conventionally, and going head to head with competitors. Both the challenges and the opportunities lay with spreading the word Australia wide, and getting a distribution network to manage that. My recommendation was to look at party plans as a means of marketing and selling the product. I think it copuld work, and she’s looking at it now. If it’s viable then that’s the only way I’ll be involved, interesting challenge as it might be.
The other option I wrote of was a massage business. As of today I submitted a formal offer for the business. It’s somewhat less than what they’re asking for, but I’m sure we can come to an agreement. After all the scrutiny of the last month both my accountant and I believe that the business is worth a lot more than what they’re asking for it. That is, maybe 70-80% more, so, literally; it would be cheap at double the price, but don’t tell them.
I expect that the deal will be done within the next fortnight, and that I’ll be the new owner of a massage business. I’ll let it run, but look to introduce some initiatives to scale it up further. There’;s a lot more potential for growth. As it is, figures suggest I’ll clear $180k pa in my pocket. Happy to cop that.
That’s where it’s at, and with my eyes open for further opportunities.