dennis88

Hi, I am Dennis and recently still studying my Bachelor of Commerce in University of Swinburne Sarawak. After graduate i decide to work in HSBC bank in Australia. However, i also would like to setup a small business (take away food) such as waffle stall to earn extra money.

I had done the survey about how to start a business which really require a lot of procedure. Get the business license, GST, Payroll for employee, income tax, rental price, and my employee's salaries.

The minimum salary for an hour is around AU$10. The employee will only work for 35-40 hours based on the employment right. I had read all the comment about small business from internet. They say a lot of small business failed in making profit.

Here is the calculation i had made.

(Local employee)
One full time employee : Work 35-40 hours.
40 hours x AU$10 = AU$400 per week
Rental possible AU$2,000+ per month or AU$500 per week
Profit from each waffle sold: AU$1 or maybe more.

To reach the break-even: Total cost AU$900 per week / AU$1 = 900 waffles per week.

900/7 = i have to sell 128.57 waffles per day to reach break-even.

(Cheap Labour)
One full time employee : 35-40
Paid AU$350 per month
Rental AU$2,000 per month
Profit from each waffle sold: AU$1

350/4 = AU$87.5 per week
Break-even = AU$587.5 per week / AU$1 = 587.5 per week
587.5/7 = 83.7 waffle per day.

If i employ one local employee, his monthly salary would be AU$1600
If i can employ Indonesia employee with AU$350 per month, I able employ 4 Indonesian to produce MORE food and make more profit.

I not sure i can import the cheap labour into Australia or not? Of course the working permit will required too.
If the employee agree with the salary i set for them and sign the contract. Will it still breach the employment law?

Regards,
Dennis