Some businesses are easy to systemise and scale, and others are not. Having sold businesses for the last 18 years, I hope I've gained a little insight into businesses that can be systemised and scaled.
Lost River Produce is a business that can be scaled and systemised if that is your intention.
It was once said that it is not a business if it relies upon the owner to turn up and run it. But that's 90% of the free-market businesses they run because of the owner, not without them.
Lost River Dickson is a business that could be engineered to run without the owner. I am saying it will be challenging, but with focus and intention, retail food businesses with a primary product like meat, fruit and vegetable complemented with dual consumer streams, 90% wholesale and 10% retail, are prime for re engineering.
For those of you that have missed the property and share boom of the last 20 years that has engulfed these two passive income markets, you may have missed these investment boats; however, business investment has never been so easy, nor has there been more opportunity to buy under-valued businesses and improve them by systemising them.
You won't need to be an MBA graduate nor employ a highly paid business coach or analyst; you will need to look at the business like a customer to find market opportunities.
The business split in income is currently 90% wholesale and 10% retail. The annual rent for the street frontage location is about $73k including GST per year, or 4% of turnover.
The two striking observations regarding this business are:
1. The owners invested less than $1,000 in advertising in 2022.
2. The retail offering is so understocked and has such a narrow range of products; no wonder retail sales represent approx. 10% of sales.
In 2022 the business turnover was about $ 1.6 million, with a gross profit of approx. 18%. One could only imagine what the sales and GP would have been if the business had the right mix of grab-and-go products and kept the stock levels up.
The business is positioned within 500 meters of one of Australia's busiest Woolworths and is complemented by an array of customer-drawing quick-service retail shops.
The asset value offered is greater than the asking price, and if you purchase through a company, you should be able to access the instant asset write-off (subject to your own investigations).
We have compiled a detailed business information package for your perusal. Please email your full name stating that you are interested in this business to sales at capitalcommercial.com.au. We will send the owner-prepared BIP once you have signed the confidentiality deed.
