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  Canada Immigration Forum > About Canada > Business > gift shop-bloor/spadina FOR SALE
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gift shop-bloor/spadina FOR SALE




There is a Gift shop on sale in downtown bloor/spadina FOR $ 109900/-

SALES - 15000 PM (LESS DUE TO RECESSION)
EXPENSES 5000 PM (INCLUDING RENT,GST,PST,
INVENTORY - 50000

THE PERSON WHO IS RUNNING THE SHOP SHOWS $5000 PM AS HIS SALARY. THERE IS BASEMENT BELOW WHICH CAN BE UTILISED. THERE IS 3 BHK ABOVE SHOP WHICH FETCHES RENT 1000-1200 PM.


IT IS DIFFICULT TO GET LOAN FOR NEW IMMIGRANTS SINCE NO CREDIT HISTORY. THE INTEREST RATE WITH CREIDT HISTORY FOR LOAN IS 9% P.A BUT WITHOUT CREDIT HISTORY, IT IS 12% P.A.

ANY SUGGESTIONS WELCOME.

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The best way to find yourself is to lose yourself in the service of others.
Mahatma Gandhi

 
Last edited by: gopalpai on 06-02-10 21:44:07
gopalpai

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Post ID: 157987 06-02-10 21:42:55
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ILOVENA
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First of all, I am not clear, what your questions are: Do you have questions about the viability of the business, and whether the price is right? Are YOU the person, planning on purchasing the business? How many people are employed in the business? What do you mean by showing GST/PST, as expenses?

You mention some property on top of the shop (some "BHK";). Is that property included in the price?

What are your specific questions relating to the questions?

You will get accurate answers, only if you provide accurate and detailed information.

As far as interest rates are concerned, those with (an excellent) credit history, do not have to pay 9% interest on their line of credit. Some like me pay Prime plus 1 %, which works out to 3.5 %.

In fact there are some credit cards which charge an interest of Prime plus 3 % per year.


 
Post ID: 157992 06-02-10 23:19:14
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gopalpai
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is it worth investing in such business?
I mean whether the business is worth investment? Is the area bloor/spadina prime area of business? The man pay rent for whole property and gives 3 BHK above his shop for rent.We can give away basement also. He is alone managing the shop and because of recession, he is not doing good business and that is why he is selling.

How to get loan without credit history? We have to invest 35% in the business from our side.When all big business houses are failing because of economic crises, is it right time to invest now?

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The best way to find yourself is to lose yourself in the service of others.
Mahatma Gandhi

 
Post ID: 157997 07-02-10 00:36:40
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ILOVENA
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I am afraid, I still do not have a clue what answers or information you seek, on this forum.

Maybe you need to speak to an accountant, who is conversant with acquiring businesses?


 
Post ID: 158017 07-02-10 18:23:44
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sudesingh
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Member since: Jul 04




Posts: 2076
Location: Toronto


Quote:
Originally posted by gopalpai

I mean whether the business is worth investment? Is the area bloor/spadina prime area of business?


Sometimes it's best to park yourself outside the business for some time and figure out for yourself about the viability of the business. If I remember correctly a similar approach was suggested by one of the members to another post about a business on this forum not too long ago.

Quote:
Originally posted by gopalpai
3 BHK


Pardon my ignorance...but BHK ???

Quote:
Originally posted by gopalpai
....and because of recession, he is not doing good business and that is why he is selling.

...When all big business houses are failing because of economic crises, is it right time to invest now?


Haven't you answered your own Q. It's a business, and along with that comes risk of the business failing, or probably picking up. One would need to go in depth and study the type of business, possibility of expansion, factors that may bring your business down etc all in relation to the specific location. Even after all of that there would be no guarantee that the business would not fail.

Quote:
Originally posted by gopalpai
We have to invest 35% in the business from our side.


I'm assuming that you have that type of down payment. You may choose not to answer this one.

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Last edited by: sudesingh on 08-02-10 00:02:54
Post ID: 158026 08-02-10 00:01:16
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imwhoever
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Quote:
Originally posted by sudesingh


3 BHK


Pardon my ignorance...but BHK ???




3 BHK = 3 Bedrooms, Hall (living room) and Kitchen..:)

 
Post ID: 158037 08-02-10 10:05:09
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Blue_Peafowl
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Member since: Dec 08




Posts: 1350
Location: Brampton, Ont, Canada


Quote:
Originally posted by ILOVENA

I am afraid, I still do not have a clue what answers or information you seek, on this forum.

Maybe you need to speak to an accountant, who is conversant with acquiring businesses?



Is it too difficult to answer ?

GP, generaly spadina/Bloor is Very good location to do business , u cant go wrong with this location - lot of trafic - but for gift shop u need to go and see what kind of cliental they have - its not close to CN tower so it will be far from tourist traffic- u can go and check your self.

SALES - 15000 PM (LESS DUE TO RECESSION)
EXPENSES 5000 PM (INCLUDING RENT,GST,PST,
INVENTORY - 50000

Number looks very promising 10,000 gross sales , assuming 40% net profit
Just one question though ? is 15000 also include rent from upstairs ? if yes then it is a reg signal.

About loan... very tuff being new commer through bank..other options are BDC , partnership, or private lender.


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Post ID: 158042 08-02-10 10:54:35
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dudewheresmycar
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Any person who is selling will bump up his figures.. so u should consider that while making the decision

If u cant finance 100K on ur own then its best to stay out of business.

For a business 100K is a small amount of money , with the word business comes uncertainty and u will probably need additional 100k cash in hand to overcome uncertainty..



 
Post ID: 158177 09-02-10 21:39:37
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rajcanadaMember of Administrators
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Member since: Jul 03




Posts: 2713
Location: Kitchener, ON


If there is 40% margin then it is $6000 profit a month minus expenses $5000, net profit in a month $1000 plus rent 1000 =$2000 per month from an investment of 109,900 plus your X hours a day x Y days a week.
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Post ID: 158179 09-02-10 22:14:33
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WEST-IS-THE-BEST
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Member since: Nov 09




Posts: 45
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2 assumptions :

1)Blue peafowl loves to to prove that ILOVENA is wrong
2) BP is not an accountant.

That said, why would you want to advise someone about acquiring a business, unless you know the pros and cons of one? For example would you with a layman's knowledge, perform surgery on someone?

Sometimes the best thing to do is provide information that you know, but let the person seeking information, talk to a professional.



 
Post ID: 158200 10-02-10 11:39:59
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Contributors:
Blue_Peafowl(2)  dudewheresmycar(2)  gopalpai(3)  ILOVENA(2)  imwhoever(1)  rajcanada(1)  sudesingh(1)  
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