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Little Diggers Partnerships

Hire-A-Hobby Partnerships

Interested in starting a Hire-A-Hobby business in partnership with us?

Hiring recreational and adventure assets is a part time business activity that makes sense for a lot of people, particularly those with mechanical experience and who enjoy such activities themselves.

If you have a day job a Hire-A-Hobby partnership can be a low risk side-hustle to generate significant extra cash flow. We live in uncertain times so it makes sense for you to have a sound and safe fall back occupation to guard against a rainy day.

Think about sharing the side-hustle with a trusted mate. Share the workload and the profits and if one of you wants a holiday the other takes over for a while. Three motorbikes, a jetski and a camper trailer can be easily run from a garage or back yard. So you have no rent, no wages costs and virtually no other costs. And the 100% tax depreciation write off means you can deduct the cost of your assets against your salary and wage income to achieve large tax refunds in year one.

If you have an existing business and some spare time and spare space, a Hire-A-Hobby Partnership makes a lot of sense for you too. You can create additional reliable cash flow without extra labour or rent costs. You can use the assets for your own enjoyment when you please and hire them out to friends and workmates as well as the general public.

If you are retired, or concerned you may soon be retired, the Hire-A-Hobby Partnership can be a great retirement activity. You stay engaged and active and financially independent: you don’t run down your retirement capital.

The tax planning is great: the $150,000 tax depreciation write off plus superannuation plus other basic tax planning opportunities means you will not pay much extra tax and in fact some years you may get a bigger tax refund cheque.

What do we do? 

Hire-A-Hobby allows you to access better asset prices from our suppliers, low cost vendor finance, a website that markets you, not us, “virtually lends” you assets so your business looks bigger (and allows you to earn passive income by sub-hiring other partners’ assets), all administration including bookings and payment by credit card and after pay payment tools, automated customer tax invoices, regular Business Activity Statements, monthly Xero management reports and KPI reports and annual Xero accounts ready for your accountant to turn into a tax return.

Hire-A-Hobby provides a ready to go website, customer relations management system, potential customer lists and recommended marketing letters and blogs for your website and social media platforms.

Hire-A-Hobby pays for 20% of your new assets.

Hire-A-Hobby monitors your machines remotely, noting locations and key operating metrics. (This information is shared with you.)

Hire-A-Hobby arranges insurance for you.

Subject to distance issues, Hire-A-Hobby lets you show other Partners’ assets on your website under its partner to partner arrangements. You get passive income if these assets are hired through your website.

In short, Hire-A-Hobby provides you with almost everything you need to run a good little Hire-A-Hobby business.

What do you do?

You provide a place of business, either your home garage/yard or a small factory/shop (or part thereof).

You talk to your customers. You monitor your bookings. You make sure your motorbikes, jetskis, campers and boats are serviced, clean and ready to go for each hire. You check your assets when they come back and you make sure they have not been damaged or misused. You deliver and pick up as required.

We are partners, not franchisors. We share profits, and that’s all we get from the relationship. There are no expensive franchise set up costs or monthly franchise fees for you to pay.

What assets do you need to buy? How much does it cost?

This depends on your local market, your experience and expertise and your ambitions. As a minimum you will have to buy 80% of at least five significant adventure assets. Depending on the agreed items, this would cost about $75,000 net of GST before tax, less the 20% we pay, or $60,000. If your marginal tax rate is otherwise 30% this will cost you just $42,000 in start up capital.

We provide everything else you need to get started.  You just provide your start-up capital, a place to operate and your time and energy.

Interested? Contact Cam at cam@littlediggersrockingham.com.au to learn more about becoming a Hire-A-Hobby Partner.