Saturday, Mar 28, 2009 at 20:49
I wish you
well and hope all succeeds.
Rules 1,2 and 3. Have sufficient dough behind you to ride out losses for the first year or two. It is a real possibility.
Having started two businesses from scratch I can assure you that it takes time to establish. First time nearly sent us broke but we got on top and did
well eventually. Second time around we budgeted for it, knowing what to expect.
The caravan hire business is not unlike our first business, a motel. You are dependent upon the business coming to you. You have a limited capacity ie the number of vans you have to hire; in busy times you will never have enough and during quiet times you will curse the capital outlay you have gathering dust.
I could go on for ages. I'm not sure what your business background is, nor your understanding of how businesses operate. Try to find yourself a good Accountant, NOT a Tax Agent, but an Accountant who handles business clients. The underlying costs are immense.
Good luck, be wary, and budget properly. It is not for the faint hearted but it can be very rewarding and financially beneficial. The satisfaction of working for yourself has a value that is hard to describe, you bust your arse but at times it doesn't even feel like work.
Also consider related business opportunities that your investment can use to compliment your income. Our primary business is
Cargo Drawers, but we have plant and equipment that can manufacture totally unrelated products that we have diversified into. In your prospective venture you will need land to hold your "stock". Consider other avenues to maximise the use. Perhaps renting out box trailers for casual hire. Perhaps Caravan storage. This can lead to sub hiring of vans that are stored on your property.
Don't get tunnel vision. When we had our Motel, it had an attached Restaurant which did little more than cater for guests. It was a losing proposution in its own right. We assessed the market in the town, noted a lack of a Steak Restaurant and promoted it as such. It became a significant business in its own right.
Marketing is another issue. You have to bring the business to you. No Golden Rule here. Research, trial and error and find what works. It does cost money, a lot will be wasted, but without it you may fail. "Word of Mouth" is great, but takes a very long time.
All the Best,
Jim.
AnswerID:
356757
Follow Up By: Hooroo WA - Saturday, Mar 28, 2009 at 23:09
Saturday, Mar 28, 2009 at 23:09
Jim,
Thanks very much for taking the time to reply and passing on some very wel thought out hints that you had to learn the hard way.
We are taking a very conservative approach and are in no rush at all.
It still amazes my wife and I that people are still willing to take thier time to pass information to help others.
We'll let you know how it all unfolds.
Thanks again.
FollowupID:
624866
Follow Up By: Wayne's 60 - Saturday, Mar 28, 2009 at 23:26
Saturday, Mar 28, 2009 at 23:26
G'day Jim,
Some very sage advice indeed.
We hope all is
well with you and yours.
Cheers,
Wayne & Sally.
FollowupID:
624872
Follow Up By: Member - Lionel A (WA) - Sunday, Mar 29, 2009 at 07:49
Sunday, Mar 29, 2009 at 07:49
Yep, been down that road, Jim's dead on the money.
If you can survive the first year or two, your on your way.
Mind you, with the economy the way it is, and the way its forecast to head, more Aussies are and will be holidaying within the country.
You may be on a winner here Hooroo. Good luck mate.
Cheers.....Lionel.
FollowupID:
624880
Follow Up By: Best Off Road - Sunday, Mar 29, 2009 at 11:16
Sunday, Mar 29, 2009 at 11:16
Another thought that came to me.
Many businesses are Caravan Hire AND Sales. Not sure if you need a licence like Motor Traders. But it does give you the option to add more to the fleet in busy times, and reduce the fleet in the quiet times.
People are generally prepared to pay a higher price for a second hand van from a dealer than a private sale, so this may be an opprtunity to make a little more wedge.
Cheers
Jim.
FollowupID:
624909