Traditionally, looking at the past financial statements is a reasonable indicator of what the company will do in the future.  This is not applicable for companies whose revenue is based (more…)

When you sell a business, you want to learn what the true profits of the company have been.  Even though a business for sale may show very little profits, it could be very profitable.  (more…)

Whenever I speak to a group about franchising or tell someone I’ve just met what I do, the inevitable question is always “What’s the best franchise right now?” (more…)

Most people when they decide to buy a business, they want it now.  When you decide to buy a house, there are lots of them around, you look for what you can afford, find the neighbourhood and put in an offer to (more…)

If you are in a service industry which is specialized in a particular area, you need to price your services at what the market will bare.  I had a client who was custom fabricator and repair shop.  He only had one (more…)

The economy is slowing, sales are dropping and profitability is on the decline.  Should you drop your prices and reduce your gross profit margin?  In order to answer that question, let’s look at an example. You are a (more…)

Times are tough and suppliers are slow paying.  You have bills to pay, the bank is not lending you more money but you have collected sales taxes from customers, you have paid your employees their net pay but (more…)

The best way to answer this question is to follow a real life example of someone considering franchise ownership. (more…)

Ever thought about starting a franchise?  Was your first thought Subway, Dunkin Donuts or other fast food concept?  You aren’t alone. When most people start to think about owning a franchise, the default industry seems (more…)

I know of a company had a bottom line equal to 1.5% of sales.  Sales were high enough to allow the family made a good living.  A synergistic buyer was looking to acquire competitors 5 years ago and was willing to (more…)