Buying and Starting the Business - Essay Example

Well-situated businesses must be accessible to clients at all times. Daily time spent on the premises to then at home with family also affects the business choice. Due to my interest in the food industry, dedicating more than half of the day to the business should not be a problem. Capital invested in the restaurant business is medium meaning lower risk. In addition, pay attention to laws governing this type of business and competitors around and ways to deal with any challenge.

Q3
Check the financial statement of the business of interest to ascertain if there are any loans under the name of the business. Further information from an auditing company on the financial state of the business is important in determining profitability. Tax returns for five years will help determine profitability. A cheap source of ingredients is another factor to consider.

Q4
First, determine the value of the infrastructure and any added material used in the business. Then determine the value contributed by the name and values contributed by the employees. From this point, determine the net value of the business based on expected future profit. To determine profitability then consider tax returns for the past three to five years and the profit margins that affect its growth potential. Consideration for competition from other similar businesses around is another factor that affects growth potential. Read More