Buying an Existing Business - Based on my recent experience
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Location: Western Hemisphere
Posted on: 02-11-10 13:11:08
Quote:
Originally posted by Maharaj
This is Excellent. Needless to say that Best info put in recent times and indeed one of the best ever on CD.
STICKY PLEASE !!! ... (if it is not already)
Thank you.
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Dimple2001
This is an eye opener for me by neglecting few points mentioned in your post. Hats off to you dimple for backing off on the deal which is not satisfied your reasearched points.
It does not matter how well you know the business and how well you know the seller, just strictly follow the due diligence mentioned in this post.
In my case its too late, but hope other CD's will keep these experiences in mind for any existing business purchase.
Btw, It would be wonderfull if some one post new home purchase and old house purchase along with the experiences.
Currently i am in the market and sitting on the fense :-)
Once again thank you and god bless you dimple.
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MK
Location: Western Hemisphere
Posted on: 03-11-10 10:31:22
Quote:
Originally posted by mkannuri
This is an eye opener for me by neglecting few points mentioned in your post. Hats off to you dimple for backing off on the deal which is not satisfied your reasearched points.
It does not matter how well you know the business and how well you know the seller, just strictly follow the due diligence mentioned in this post.
In my case its too late, but hope other CD's will keep these experiences in mind for any existing business purchase.
Btw, It would be wonderfull if some one post new home purchase and old house purchase along with the experiences.
Currently i am in the market and sitting on the fense :-)
Once again thank you and god bless you dimple.
Thank you very much.
One item I don't think I mentioned that was an investigative factor was the salary the owner was taking home.
There are two ways to take income. One is off the net profit (profit after taxes) and the other is T4 yourself as an employee. I prefer the employee route since you can call yourself employed with a T4 as opposed to self employed. This seems to be looked upon favorably, especially, when obtaining/renewing mortgage, etc.
Also, when doing as an employee, you get to do it as a before business tax item (of course, as an employee, you will pay taxes on your derived salary).
If you have a spouse or children that are eligible to be employed, you could distribute the income among all of your family members so everyone's tax bracket is fairly comparable as opposed to one being in the real high tax bracket.
If during the course of the year, the revenues shoot up, your accountant can advise you to take occasional "bonus" on top of your fixed salary, and improve the income earned by you as an employee.
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Dimple2001
very excellant information and good job done.Thank you
Hey Dimple,
Thank you for compiling all the hard work you 've put in to words for the benefit of all of us.
Indeed an commendable job, paving way for success for all the aspirant entrepreneurs
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mor
Whenever you experience joy, peace, security, equanimity or purity, it is only because you are aligned with ALMIGHTY.
Hi Dimple,
This is some amazing work you put in there! Me and hubby were going thru to check some franchise business options and found this site very helpful
http://canada.franchiseopportunities.com/franchiseguide.asp
Do you have any idea on franchise businesses? Like UPS or KUMON schools? We were thinking of some options before we migrate to Canada but this all is very risky as one invests all their savings of the lifetime, so we ended up confused and still contemplating!
Jona
Location: Western Hemisphere
Posted on: 08-11-10 11:35:24
people99, peacock1 and jonav - Thank you.
Jonav,
You can research franchises on the individual companies' website and I believe you can fill out preliminary screening forms or request information/disclosure packages. I am not too much in favor of franchises.
Franchises provide everything and you can start with a great infrastructure, but is capital intensive. They will require you to have cash as investment and the entire money cannot be financed. However, banks like TD have a dedicated/favorable program to finance franchise startups such as McDs and Timmies. An ideal option would be for one of you to work full time salaried job while the other pursues the business interests in order to have a stable transition.
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Dimple2001
