So here's the plan

So here's what we're thinking of. We want to aggregate 4 small, under performing street cafes in the Bayside area, re-brand and refit cheaply. Inject good quality small business practice where not present already under a good concept brand to create a viable group of small, locally focussed, coastal theme cafes in the Bayside area with much improved turnover to present a viable equity exit opportunity after 12 months, or ongoing dividend stream.

As a variation, we may decide to lease vacant shop space instead of buying existing businesses. This has the advantage of not having to pay for an existing business, but the fitout will be pricier, and we have to build trade from zero instead of tapping into existing customers.

We reckon there are a number of opportunities we're exploring that can help us to success:

1. The vast majority of small street cafes in the Bayside area have zero brand or style. There is no individuality, theme or concept. We will create a strong branded theme and style.

2. Very poor business practices appear to be prevalent. We have now looked at nearly a dozen small café operations for sale, and all have been characterised by low quality management, reporting and systems. We will employ sophisticated small business management practices built over 15 years of successful business management.

3. The small street cafes do no marketing that we can discern. Yet they are located in high population centres, usually with major businesses and residential clusters in immediate proximity. We have long experience in creating below line highly targeted low cost marketing campaigns, and we will use this background to encourage locals to give us a try.

4. Same old same old food and beverage and/or too large or too inconsistent menu. We’ve seen cafes selling hot chips along side freshly squeezed juices; vast menus for a 10 seater café; or just a lack of imagination. We will present a consistent menu of food and drinks, with something different to capture peoples’ interest. For example, platters of high quality French and local cheeses, with good breads and biscuits with a matched glass of wine. (we plan to apply for a liquor licence for all our cafes).

5. Aggregation benefits. With poor management, zero marketing and lack of brand, small street cafes are often breakeven, with a high owner turnover as a consequence. Our plan is to have four cafes within 12 months, with superior management, strong concept and brand, and good marketing. We will achieve efficiencies and savings in back office, accounts and purchasing, yielding an improved return on investment and inevitably a better experience for the customer.