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
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.
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
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?
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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SS
Reiki Grand Master
Quote:
Originally posted by sudesingh
3 BHK
Pardon my ignorance...but BHK ???
3 BHK = 3 Bedrooms, Hall (living room) and Kitchen..
Location: Brampton, Ont, Canada
Posted on: 08-02-10 10:54:35
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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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)
