Hi Guys,
I am looking for advice to start business.
Let me give you some my backgound information.
I am in IT and I am not expecting to grow further in my field to make high income and also I don't want to be depend on one income source. I would like to have business as other income source. I do not want to leave job until I make more than my current income from business. I am ready for hard work and to spend time in evening and weekend if require. I would prefer to have Sunday off.
I own home with mortgage. I do not have any debt. At this point, I can't save much from my current income. I spent my monthly income in regular expenses including mortgage/taxes/bills/insurance/RRSP & RESP contribution. (No Saving). I have some saving on Hand about $25000. My wife doesn't work as I have 2 year & 7 years old children. If she works, She can't make more than minimum wages. So, I would prefer her to involve in own business instead of working for someone else whenever she will available.
Actually, I have invested my past saving in India (Residential plots). At this point, it worth about about $150000. I also have my own flat in India where my parents are living. I do see the growth of my investment in India. So, I do not want to touch this saving at this point to start business in Canada.
Thinking about to use my current saving + loan to start business to generate extra personal income. It is okay, If I'll not make anything from business in startup but don't have anything to invest in business except this $25K.
I have good friend who is also intresting to start business and there is the possiblity to start business in partnership. He can also invest about $25K + loan to start business. We both have good credit.
I am looking for options to start business. My goal is to generate extra personal income through this business and it should be expandable. So, in future I can leave job and concentrate more on business.
I need your suggestion on following business option.
1) Subway (I'll be depend on employees. I am okay to make less money but I don't want to work my self for long hours. In future, I would like to expand from 1 store to multiple stores)
2) Buy and Rent a property (Commercial/Resident)
I am at very bigining stage of starting business and Looking for more options and suggestion/comment to start business. I do not have much knowledge about stock market and never invested in Canada.
Thanks,
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Success is Never Ending and Failure is Never Final.
Location: Western Hemisphere
Posted on: 15-10-10 14:31:14
Best wishes in your pursuit !!!
You mentioned you don't save anything, yet mentioned contributions towards RRSP and RESP. Those are savings after all and in fact a disciplined way of savings since the contributions (I am assuming) are automatically taken from your paycheck.
As far as businesses go, it is easy to obtain information on franchises such as subway. Just go their website and get franchise information and you can also request info package. The drawback with franchises, in my opinion, is the huge startup money required. Some banks do have agreements with franchises to provide loans to open a new franchise and that might be an advantage. Also, franchises will require you to possibly travel off-site for training and such and that will force you to take time off from work.
Rental properties might be lucrative depending on the local demand for such properties. For example, in Windsor, I would stay away from property investment as this is a bad market area right now. I am not sure how much down payment you might need to buy the property, but you may be able to get a mortgage if the property has decent appraised value.
You can also try buying an existing business. You will have to look around on websites such as businessesforsale.com or businesssellcanada.com. While an existing business might have an established infrastructure and clientele, you may be required to mortgage your personal net worth as collateral depending on the nature of the business.
Hope this helps a bit.
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Dimple2001
Quote:
Originally posted by dimple2001
Best wishes in your pursuit !!!
Hope this helps a bit.
How is your business hunt in Windsor going on Did u find something..?
Location: Western Hemisphere
Posted on: 15-10-10 19:14:06
Quote:
Originally posted by Bingo
How is your business hunt in Windsor going on Did u find something..?
Yes, I did. If and when the deal closes successfully which would be another 2 to 4 months at least, I'll post my experience.
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Dimple2001
Quote:
Originally posted by dimple2001
Quote:
Originally posted by Bingo
How is your business hunt in Windsor going on Did u find something..?
Yes, I did. If and when the deal closes successfully which would be another 2 to 4 months at least, I'll post my experience.
Great ,Congrats.
Quote:
Originally posted by meitsme
I need your suggestion on following business option.
1) Subway (I'll be depend on employees. I am okay to make less money but I don't want to work my self for long hours. In future, I would like to expand from 1 store to multiple stores)
2) Buy and Rent a property (Commercial/Resident)
I am at very bigining stage of starting business and Looking for more options and suggestion/comment to start business. I do not have much knowledge about stock market and never invested in Canada.
Thanks,
For businesses banks are very strict for last 2 years. Banks provide loans on their evaluation of business and as their evaluation is less than the market price you have to put more in Capital. e.g. if you try for an average subway which as a price of 300K you will get loan upto 210K. You have to put your own 90K and if you go for partnership small business will not generate enough for two investors.
Nowadays banks provide finances for big well performing franchises like Subway, Pizza Pizza, Mcdonalds. etc. But forget about convenience stores or not so well performing franchises they don't approve loans(because of lots of bankruptcies in recent past). So first check with the financial institutions.
If you invest very high in well performing franchises your ROI will take a lot of time.
In long run you will be definitely succeed but you have to input not only your hours but your own funds. If you are really interested in business it would be better if you can arrange some more finance from India or somewhere else you will be fine.
I donot have more idea about investing in buying and renting property.
Location: Brampton, Ont, Canada
Posted on: 18-10-10 10:58:46
If you really like business but short for money on down payment then you should consider asking VTB’s
Sometime borrowers (buyers) who do not have sufficient assets to make the necessary down payment in that case you should try for VTB-( Vendor Take Backs ) VTBs are when you obtain a loan from a bank or financial institution and the seller gives you a loan for the down payment.
Payment arrangement can be discussed with seller ( usually you make monthly payments, or lump sum payment
NOTE: not all the business owner agree with that but if you really are seriouse then you can try for it -( some case its works) - specially if you have good brokers working for you , who can negotiate .
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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)
