I am planning to buy a business in Canada, but sometimes I become confused in this matter. Because if the business in profitable that why he is selling it, and if it is not profitable than why should I purchase it. I have gone through from the different sites in the matter of Business purchase "GAS STATION". Some times the figures given by them are very attaractive and I thougt that this could be very good purchase for me. But another side I got confused than why he is selling the same. Could any one guide me in this matter, that the figures given by them in the matter of Sales, Gross Profit and net profits are true or not.

You are also requested to please advice me that buying on any exisiting business is better or new business set up is better for us.

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Rabyte

Hi oshoexport,

Are you in India or Canada?

If you are in greater Toronto Area, you might want to go to Mississauga Lib at Sq One. Go to 4th floor, biz centre. They have a prof biz counseller. You have to book an appointment. You have to let them know your areas of interest, the biz counseller will keep info handy on a scheduled dt. They chg like $20 OR $25. But I have ehard that they are good.

Other than that I do not have any idea abt biz.

All The Best

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Let's help each other to grow & prosper in Canada

Hi Osho exports,
Congrats and all the best for your venture.
One small request to you, please keep all the record of steps you do to buy, I mean all the places of visits, and dept. u contact, I am soon to migrate and intend to do the same , it may be a handy help for me too.
Thanks in advance.

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mor

Whenever you experience joy, peace, security, equanimity or purity, it is only because you are aligned with ALMIGHTY.

Hi Reachash,
You may please share all the info u have on buying biz.
Take your time.

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mor

Whenever you experience joy, peace, security, equanimity or purity, it is only because you are aligned with ALMIGHTY.

reachash,

Thanks for the reply and giving me information on counslor service, but this reply doesn't satisfy me, any way looking forward

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Rabyte

Why someone is selling the business? If you ask this question to the seller, the common answers are:

I want to retire now.
We partners are separating
I want to move to India/US/Pakistan etc..
I want to buy a bigger business
I already bought another business and can't handle this

In reality many of above reasons are valid. If you buy a business today earning say 80,000 a year, you are not going to stick to the same business for entire life. You are going to sell it sooner or later. The same way other business owners needs to sell.

Yes, there are chances that the business is not running as expected and than the owner wants to sell it. There also could be some external figures affected the income. Like changing community. I have seen such changes in a year. A Sub-way running great had lost its revenue by 1/4 in a year. Why? The shopping mall had one big canadian super grocery store and it was replace by Chinese store! So you have to be careful while buying a business.

I remember that there was one coffee-time available before 2 years or so. The figures were great compare to prices. He did said that because of the Tim-Horton started nearby in last year or so, his sales reduced by 10 percent compare to previous year. When I asked the owner to give me monthly break-up of those figures, he refused to do so. I am sure, in his monthly figures the trend must be declining, having less and less sales month by month.

Best thing is to get figures for at least 3 years. That will give good indication of business situation. Now not everywhere the figures are available. People doing cash business and so. What to do? If it is a retail business do physical checking of business. That you have to do for 2-3 weeks. Random checking is not a good idea as business varies from time to time.

Another thing is to note the prices of the items they are selling. If it is too less and doubt it. Some of the owners to increase sell figures (as they want to sell the business) reduce the price and their sell volume goes up. And if you simple consider margin of (whatever say 30%), your all calculations go wrong.

Generally such owners doing mal-practices, can't sell their business quickly. So you can see from the listing that how-long this shop is in market and that will give you good indication.

Each business is having its own maths. If you specify the business you are considering, and if I know something about that business, I might help you.

As far as legalities and paperwork is concern, buying a business in Canada is much much easier compare to India.

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A Proud Indian Canadian

Oh, you did mentioned Gas Station.

Now what kind of Gas Station?

Only Gas Station?
With Convenience (that is where it makes sense)
With other related services - like Car Wash, Oil Change etc.

I am not considering Gas Station as good business in Canada. It requires a lot of time and commitment, investment is high and return is not that good.

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A Proud Indian Canadian