Good explanation Chandresh.

A point that I first leart is about divorced people and people who are contractors coming to cash their cheque, which is a huge volume. I myself used to be paid such cheques but then I was told by my employer's accountant to open a business account and put it there to evade taxes. (payment was less than $ 15K a year, whch is a limit for what auditing need not be done)

Since I am not in Canada for 4.3 years, I would not like to comment on the volume of business, which current residents will know better. Volume of business will determine the sucess.

Murali

-----------------------------------------------------------------
I am a Gents and not a Ladies.

chandresh,

How's the work-life balance? Do you need to be present at the store from start to finish, or can hire a help? Even with hiring someone, would you be making enough to substitute your current income from your job? Also, would you be employing someone from within you house, e.g. your wife to take care of this said Business?

I am sure you may have played with pros and cons, but what I have seen is the people that buy these Retail businesses normally don't have any time left for themselves and their families, unless they hire a trustworthy employee. So, think about your leisure time as well. As we grow old, we need it more than ever before.

That is the sole reason for my wanting to go into business with a partner. You start with one store, and then grow into owning more. Once you know the business, it can be controlled from different location by keeping an employee/s in each location. Yes, one store will not give you enough to be able to afford an employee but one needs to have someone available to him in times of emergencies or just to enable one to take a day off.

In partnership, the advantage is that each partner can afford to take vacations even for say a month, since the other partner can look after the activities - but of course, this is worth only when you have two or more locations. The first location is only to learn the business.

-----------------------------------------------------------------
Chandresh

Advice is free – lessons I charge for!!

Ofcourse Money Mart is in it and the other big guys. That's what I have been saying all along. So thanks for making my point.

My point was its NOT easy for a small time guy like OP to start a business like that, its the big guys who are into it, and not something a mom-pop type of small time retail guys, who are into it or can start it. You need lots and lots of investments and deep pockets for it, and you can't compete against the well established and entrenched people like MM, Cash For Money etc.

Quote:

---

Originally posted by chandresh

I said I give up.......it is foolish to explain to a person who is not ready to understand and has pre-conceived notions. However, since I started it, I will end it with some explanation.

First, why my could be partner selling his stores (he already sold one and selling another, after having sold his motel too)? His wife who is now at middle management level, has moved with a multinational company to Florida (internal transfer), and his daughter is already in NYU. He has already started getting into real estate business in Florida so makes sense to shift his base there and dispose off his business here. (and I am seriously considering buying it since in any case, it was supposed to be a partnership store - only thing is I am not very sure of getting into retail business at this stage of my life, and will definitely not do it till I get a partner to run it with, may be a working partner only).

What does this business do?

1. It provides pay day loans to people who are in regular jobs but are always running hand to mouth, and we find such people in all societies, including Indians (that is why we have such stores even in Brampton). For them, life is worth living today, not to save for future, which they might never see. It is a different philosophy and to an extent I follow it too - just that I save about 10% of my income for a rainy day so am never hand to mouth. And by the way, people who are not employed cannot get pay day loans - since they do not get pay!!! Before lending, the shop owner verifies that the borrowers are in regular jobs (they have to provide last two pay stubs etc.). I have seen nice but lower middle class persons coming into the shop with family, including nice looking children, to get loans, simply because their needs are greater than their incomes sometimes!

2. It provides check cashing - and there are different kinds of people cashing those checks - the bulk is those getting govt checks who do not want to wait, and believe it or not, just want to go to such shops to "talk to someone", which banks will not do. In Banks, even the govt checks are "held" for sometime. I have seen people giving away tips of $20 after cashing their checks, simply because it was one of their bright days where they were able to talk to someone for half hour and who was willing to hear their stories (yes we were trained in MM to do this - even if there is a line up, since this is what brings many people to your shop)

The other kind is those private contractors who get paid in checks - for them it is easier to hide the money that way, including the HST billed by them (yes, they are cheating the system, but hey, who am I to teach them morals)

The third kind is - divorced people - including private contractors of any kind - plumbers/carpenters/IT guys etc. The charges they pay for cashing their checks is much less compared to the alimony they have to pay if they disclose their income. Have seen people driving up to the shop in nice cars and immaculately dressed, but cashing their checks.

3. Then their is Western Union - thousands of people who are immigrants in Canada use this mode of transfer of money, instead of banks, since as you would know that such transfers are not only easy to collect, but almost instant too! While the shop owner does not get much out of this transaction as most is eaten by Western Union, they get a "cash float" for 2-3 days which finance people will understand how lucrative that can be to run your regular lending business.

4. Lately, most of these shops have added buying of gold for people who want to sell it - for various reasons. They buy it at almost 70% of market price, sell it to bigger dealer at about 90% so make a clean 20% ( in ROI terms 20/70 = 28.5%)

I guess I have given you some insight into the business and people will have better knowledge. It is just that even after knowing all this and having got some training in such a business (which was just to get first hand knowledge - in the MM at Keele and Finch which used to be a 24 hr shop), somehow it was not in my fate to get into it. My friends did, and they have made good money.

By the way, by law, in Canada, a lender is allowed to charge a maximum of 59.9% p.a. interest!!

---

Back in 2004 when I signed up for canadiandesi website, I uses to find Chandresh's posts were standalone and was the first person I met from a public forum, you did give one good advice for free.

Well, the Moneymart shops also have western union and Moneygram service which pays some percentage on the transaction, as the volume grows it could cover some expenses and then they have ATMs which also gives some commission I guess.

Quote:

---

Originally posted by chandresh

That is the sole reason for my wanting to go into business with a partner. You start with one store, and then grow into owning more. Once you know the business, it can be controlled from different location by keeping an employee/s in each location. Yes, one store will not give you enough to be able to afford an employee but one needs to have someone available to him in times of emergencies or just to enable one to take a day off.

In partnership, the advantage is that each partner can afford to take vacations even for say a month, since the other partner can look after the activities - but of course, this is worth only when you have two or more locations. The first location is only to learn the business.

---

-----------------------------------------------------------------
The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM

I have waited here for a few posts and a few more days just to see if there are any good projects or propositions to follow with a very small investment capital and derive even a small four figure return per month or a good suggestion to point in the right direction and tell us how.

No good responses as yet from anyone to follow or do research upon.

I have done a lot of research and also found a few avenues that were not so fruitful.

So, I will wait for a little longer to hear from a few more.

In the meantime, I will still keep exploring a few more ideas. I am sure a few fill get perfected and they will gell.

Please root for me.


FH.

HRH LMC.

In today's time with internet, strong buying/selling platforms, easy way of online promotions & technological tools there is vast opportunity for anyone to start the business and run it successfully with very-very little investment. My suggestions:

1) Register your company. Procure products(one can start with even dollarama items too) and start selling on multiple platforms. You need to explore about the various software that do it easily and and do it in bulk. I have been doing it for more then 10 years and I started with no experience (nada) in this field.

2) If you don't have products or don't want to procure them physically(storage problem etc.) then take distribution of companies which drop ships for you i.e. you take orders and the company will ship it for you in your name/company's name. There are many really good companies which do it very professionally. I did drop shipping in the year 2011-12 successfully and I tried it because of the Canada post strike in the year 2011.

2) Keep your profit margins low and sell in bulk for the turnover and to be competitive worldwide.

3) Involve your family (kids/spouse) in doing the business - use resources- it really helps.

4) For business- Ship your products (eligible products only and of value not more then $200 per parcel) through USPS and not Canada post -- lot of shipping cost difference between USPS & CP and it is very easy to do through USPS.

4) ..and we all know about it.. just apply.. Think beyond and differently than what others are doing around you.

BTW.... Please message me.. If anyone wishes to come to my office (new and from this month only) and wants to know little more about it . Saturdays (between 2 - 4 pm) .

-----------------------------------------------------------------