Archive for February, 2010

Franchise Means

franchise means

Interested in Franchising

Many people are trying to get rich the easy way. In fact, there is no easy and legal way to get money. If you want to make a fortune, you have high chances by choosing not the easiest way, but the safest way when it comes to your investment: the franchise business.

You might have heard about the franchise business, but most people don’t know exactly what does franchising mean. Franchising is when a large company which is known by a certain number of people decides to expand by selling its name to those who are willing to pay. In fact, companies who earn more than enough see an opportunity in giving their secret to others. Because they already have a lot of customers interested in the products and brand, they will be redirected to the franchise that will start earning more and more. Everyone will have to gain from this situation because clients will have two stores from where they can buy their favorite product, franchisors will receive a percentage of the winnings or the initial investment and those who have bought the franchise will have their own franchise business with almost no effort when it comes to the marketing department.

If you want to buy a franchise business you need to have some money. There are many franchise business from which you can choose, but you need to find the best ratio between the money that you can afford to pay and the quality of the franchise. Some franchise businesses are better than others and you need to pick carefully. After you buy your own franchise, you will collaborate with your franchisor. He will give you a location for your franchise, he will tell you what team of people you need to hire and he will even train you until you get used to running franchise. The franchisor will have some responsibilities and obligations that are usually stated in a UFOC or a similar document. On the other hand, you will have some too. If both parties get along, you can have a successful business with no problems. You can even add your own scent to the business if your franchisor agrees. Basically, franchising is like owning your own business but with a safety net. If you would start a fresh business and you happen to make a mistake, you can lose all of the money that you had invested. If you make a mistake with your franchise business you won’t lose it because your franchisor will try to solve your problems and he will teach you how to avoid making similar mistakes. Even if you have a franchisor who doesn’t get involved in these kinds of problems, you can still turn to a franchise business consultant. This is probably the best solution because he can turn you into an expert in record time. At first, you won’t be able to learn every little aspect even if you want to, but in time and with the help of a franchise business consultant you will begin to run your franchise business like an expert. A franchise consultant can improve every aspect of your business through some simple strategies.

Starting in franchising can be a little tricky at the beginning, but if you make all of the steps correctly and take your time you will have enough people by your side to sustain you and your business until you get the hang of running a whole franchise business by your own.

About the Author

Find the franchise opportunities you need with the help of myfranchisecenter.

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Franchise Ftc

franchise ftc
Dollar Thrifty-Avis deal may hinge on selloff requirement
The Federal Trade Commission may demand that Avis Budget Group divest some assets to be able to purchase Tulsa’s Dollar Thrifty Automotive Group, antitrust lawyers and industry analysts say.

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Car Detailing Supply List

Storm Readiness: Storm Supply List

 

Storms not only cause damage to your property, but they also can destroy your peace of mind. Luckily, there are items available that will make life during and after the storm easier to handle.

To help you prepare for a flood, hurricane or other natural disaster, here is a list of key items that you should have readily available:

  • Flashlights
  • Battery-operated lanterns
  • Battery-powered radio
  • Battery-operated fan
  • Extra batteries—you should have two extra sets for each battery-operated item
  • Special care items for infants or family members with specific medial needs
  • Prescription medication supply

  • First aid kit

  • Clean drinking water
  • Waterproof matches and lighters
  • Propane or gas grill/stove (for outdoor use only).
  • Supply of canned/non-perishable foods

  • Manual can opener
  • Disposable utensils, plates and cups
  • Fuel for your car and/or portable generator along with a funnel
  • Garbage bags
  • Rope and hand tools
  • Insurance agency contact information and other important documents in waterproof containers.

 

Additional storm preparations

Fill clean bath tubs with water for miscellaneous use and remember that pool water can be used to flush toilets.

Be sure that you have at least a 30-day supply of prescription medications or special care items, as well as a minimum of a three-day supply of food for each person and pet.

Transfer perishable food items to an insulated cooler. Try to eat these foods first because of the potential for spoilage.

Cover windows and glass doors with hurricane shutters or storm panels. If these materials aren’t readily available, board them up with plywood and plastic sheeting to protect your property.

Even after following these steps and acquiring the list of key items, not all damage can be prevented. That is why storm damage restoration Delaware professionals are available 24/7/365 to remediate the damage.

About the Author

ACCORD Restoration specializes in clean-up, repair, restoration and rebuilding after fires, floods, storms or natural disasters. We offer reliable, 24/7/365 emergency services carried out with expert craftsmanship.

To learn more visit http://www.accordrestoration.com/

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How Does Franchise Business Work

Franchise Business Opportunity $50 [Business Opportunity] Franchise Business FREE

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Franchise Tax Board Phone Numbers

franchise tax board phone numbers

Due Diligence 101 or What you Don’t Know Can Kill You!

Introduction:

This article is written as a general discussion on the subject of “Due Diligence”. It is for informational purposes and not intended to be a definitive guideline for your exact situation. You should consult the appropriate professionals with regard to your specific transaction or situation. Further, this article is in no way advocating, suggesting or implying that anyone engages in any type fraudulent activities whatsoever. These are simply the things a buyer should be aware of when doing due diligence in buyer a business.

You spent months finding the right business. The seller says that you cannot go by what the tax return shows but the business is making a lot of money, and he can prove it. Your inspection of the profit and loss statement shows that sales have been increasing slightly in the last few years. Most important, and the best news of all is; the price is right! Does it sound too good to be true? I am sorry to tell you this, it probably is.

I think it was Benjamin Franklin who said, “A fool and his money are soon parted.” Mr. Franklin must have known a lot of business buyers. When buying appliances that break in a month, it costs you a few dollars. When you go to a swap meet and are cheated because the solid gold watch is really gold plated, it costs you a few hundred bucks. When a used car salesman cheats you, by selling you a lemon, where the speedometer has been turned back 100,000 miles, it costs you a few thousand dollars. Getting cheated buying a business can cost you many thousands to hundreds of thousands of dollars. The only investment or purchase that I know of where you can be cheated out of more money is in the area of real estate. Real Estate fraud can runs into the hundreds of millions of dollars and does. You would be shocked at all the people between 1875 and 1950 who saw ads for prime real estate in Florida and bought swamp land. What about prime Louisiana beach front with Alligators living outside your front door? I have written a series of articles on fraud and it keeps getting bigger and bigger.

I hope that the point is made. Never buy a business on someone’s word. Actually, you should never buy anything on someone’s word. Confirm everything, believe nothing and understand that you are still going to find out things, after the close of escrow, which is going to surprise you. A similar example is one known by every employer. A staff worked for a company for 4 months and complained to the personal officer that the job was just too difficult. He kept complaining that he needed more training and lower quotas. You feel sorry for him. You talk to him and talk to him about it. You listen and believe all the excuses he gives you for poor production. Finally he quit, blaming you for something that you did, this just before you were going to give up and fire him. Then you started to take over the work of finishing his incomplete projects. You are shocked, as you always re, at what he did wrong and what he had covered up, that he was not doing. This is what happens when you buy a business. You find out all the actions that the seller, not his staff, had stopped doing, from the day that he decided to sell the company.

Many businesses are doing well. Sometimes the owners have personal things going on in their home life. Sometimes they have medical problems. Many times the business is not doing well and the seller is frustrated. It is very common for a seller to work hard to build his business, but because of many reasons, it doesn’t produce what the seller wants. He gets frustrated and one day he gives up. That is usually the day he calls that business broker he met and asks the big question. How long will it take you to get me out of this place? In his mind, he is gone. He just counts the days until he physically walks out.

Have I scared you? Good. There is a plus side. It is worth all the grief that you go through to buy a business when you get in to the drivers seat, put all the marketing actions into place and start driving your own business.

In 2000 I had a client buy a car wash soap manufacturing business for $2 Million dollars. The seller swore it was making $500,000 profit per year. Due Diligence showed it was only making $300,000. When presented with the auditors report, the seller claimed the audit was wrong. The buyer bought the company, knowing he was overpaying for the business. Why? He had done his research on the production department and sales department. He went out on the deliveries with the drivers, and met customers. He determined that he could double the sales and profit within one year. After he bought the business he found two things to be true. The profit was $300,000, as my audit found. He could double the sales and profit within 12 months, and did. The seller tried to screw the buyer, but in the end, justice was served. The seller screwed himself more than he screwed the buyer by not running his business correctly. If he had he could of sold it for a lot more than $2 Million dollars.

Ok, enough with the fun stories for now. Let’s get down to the details of what to look for when doing “Due Diligence.”

Due Diligence Defined:

The phrase is composed of two words. “Due” which the dictionary defines as “Proper or adequate” and Diligence, which is defined as “Degree of care or caution expected of a person. Especially as a party to an agreement.” Caution is the watchword in this definition.

Financial Statements – What to look for:

Add Backs:

If you bought the business through a business broker you should have received the business financial statement with a separate worksheet showing adjustments to those statements. These adjustments show the owner’s benefits received from the business besides the profit and salary he receives. These can also be defined as personal expenses that need to be added back to the profit. Depreciation, incomes taxes, interest expense are add backs that are not personal. Personal includes such things as family auto expenses, owner life insurance, owner health insurance, business entertainment that was not really spent on clients, business trips not really for business, home office expenses, family cellular phones and much much more.

Make the seller show you the details on some or all of these expenses to verify that they are really personal and not actually business expenses that shouldn’t be added back to profit. Spend time asking detailed questions with the general ledger in front of you. Go through individual charges and what they mean, until you fully understand what is being added back and why.

Inventory:

Inventory of resale merchandise must be checked for two reasons. One is you have to pay for it. Be careful, you do not want to buy merchandise that is old, worthless and not saleable anymore. Only pay for current marketable product. The price you are supposed to pay for the inventory is the seller’s cost. The price for old slow inventory is negotiable. Always spot check the price and count the merchandise listed on the inventory list. Do people put down that there is three of an item when there are only two? Of course, especially when they think no one is going to be checking them out. Comparing prices from purchase invoices is how you check prices. You cannot check every item against the actual cost but you can do 5% of the items. Pick at random, not by any suggestion made by the seller or others. If you do not understand how marketable the inventory is that you are buying, hire an expert, from that industry. Your broker should be able to help you in finding someone. Do not be cheap, and think you do not need to spend the money on an expert adviser. I will take a lunch bet that they will pay for them selves many times over.

The second reason for checking inventory is that if a seller doesn’t take inventory at least yearly and adjust his inventory value in his accounting records, accurately; the profit figure you are receiving will not be accurate. As a rule, the higher cost of goods sold, the lower the profit. Some business owners reduce the inventory value on the books, intentionally, to a lower value so as to make the business show a higher cost of goods sold, which then creates a smaller taxable profit. If they do this year after year, the profit may or may not be accurate for the current year. It might take a CPA to figure this one out for you, if you do not have a background in retail.

Equipment value:

Next thing to check on the financials is the real, current value of the equipment you are buying with the business. The balance sheet might, if it shows all the equipment the company owns, give you the cost of the equipment when it was purchased. If you are buying assets rather than cash flow, the equipment valuation becomes more important. No one wants to overpay for used equipment. Also check that the equipment works and is actually being used rather than sitting behind the building with other junk.

Cash Sales:

If all income is being reported, check sales volume activities that you have observed against the daily records during your “Due Diligence” to see if the volume corresponds to what was reported last year in the same month. If you see income of $500 per day but the seller shows sales of $1,000 per day, you need to find out why. Some smart buyers sit in the business all day, watch the sales and observe the activities of the staff. This works if the seller is not putting on a full fledge production fraud for you the buyer.

Fraud:

How does a seller defraud a buyer on current sales activity levels? Sellers who keep poor records or no records, many times, suggest the buyer doing a 15-day visual inspection. This helps but it is very dangerous to rely solely on physical inspections alone because the seller can still defraud the buyer. Here is the most famous of the stories I have heard over the years.

Seller owns a dry cleaner. The buyer and seller have opened escrow and the deal is subject to a 15-day physical observation period. The seller doesn’t want the buyer to find out that business volume is very slow. The seller tells all his friends to bring their dry cleaning in to the shop for a two-week period, at no charge. They bring in the clothing, get it cleaned, pick it up and pay for it. Later the business owner meets the customers and reimburses all of them for the cost of their dry cleaning. The day after escrow closes all that business traffic stops. Think it never happens? The same is true of restaurants. Seller tells all his friends to bring all of their friends in for a free meal. Customers pay the bill and some time later or at home, the business owner reimburses all the customers for the cost of their meals.

Actual time sellers spend working:

Determine how many hours the seller really works. You are buying an income stream based on a known number of hours of work. Make sure the seller isn’t working 80 hours and telling you he is only working 40 hours, per week. I had an absentee fast food owner tell the buyers and me that he worked part time – 5 hours per week. Closer inspection showed he was working 25 hours per week. One auto repair seller, we’ll call him Bob, said he never was at the business, because he had a second full time job. Inspection found he was working 30 hours a week (4 plus hours every night, and 8 hours on Saturdays).

Find out what job functions the seller does:

Get a list of functions that the seller does. Is one of them bookkeeping? Sometimes the wife does the books part time and this is never said. Again you may find the owner does the bookkeeping, at home, every night, for an extra hour. In an auto repair shop, you may find the owner is doing auto body repair work, personally, on Saturdays, which is work that you, as a buyer, will never be able to duplicate. You need to be sure you know how to do every job function that the seller does or learn them. The time to find out what technical knowledge you need to have to take over the business is when you are doing your investigation, not the day after escrow closes.

Verification of things that are not on the Financial Statements:

It is a common occurrence that businesses do not record all of their income on their financial statements. Yes, this is true. Many people do not, in fact, report the truth on their tax returns. In fact, when I am talking about small retail or service businesses that deal with the public directly, I find it is over 90%. “Will the people with an honest set of books, please leave the auditorium. There are two golf carts outside waiting to chauffer you home. You do not need to hear this.”

The balance of this article will discuss how a buyer might do their “Due Diligence” for different types of businesses. These types of businesses include Restaurants, auto repair shops; real estate services contractors, non-real estate repair/ services, and retail stores.

Restaurants- Non-Franchise:

Restaurants compose over 25% of all businesses for sale. This is not because they all go broke, as the SBA reports. It is because 28% of all retail businesses are food service or food sales. It is the largest segment of the consumer market. Because it is a retail consumer business, it deals in 33% cash. Every independent-non-franchise food service business I have been into shows zero profit on the books. Some even go overboard and show a tax loss. It is because they do simple tax planning that does not require an MBA degree to figure out. If the business doesn’t show all of its cash, or any of its cash, the expenses will equal the reported income. This alone makes it attractive to many buyers. We will not discuss the moral issues of this attitude; it is what it is. What we have to discuss is how do you, the buyer, can prove that the business is making a profit? And, if it is, how much?

Restaurants come in two categories. 1. Fast food-counter sales. 2. Sit down. Fast food restaurants have computerized cash registers that record the sales into its computer, which has a memory. This memory has daily totals going back to the beginning of the computer’s history. Most owners close out their cash registers at the end of the day and print out the tape of each day’s activities. This does not automatically wipe out the information for the day. The computer does, I am told, have a delete button on it allowing the owner to wipe out the full memory in the computer, in the event of an audit. I have also been told, but do not believe, that an electrical blackout can wipe out the memory in the computer and that is why one seller said he couldn’t give me access to this information.

If we are talking about a sit down restaurant sales information, you can use the daily order ticket, which are then imputed into the computer. This gives 3 sources: tickets, computer and daily tape totals.

When this information is not available, for any reason, an experienced restaurant consultant can tell you the sales activities just by inspecting the restaurant and counting the number of customers eating at 4 key times in a day, and on several key days per week. Then the consultant can figures out what the average sales ticket amount is. With this information like magic the consultant knows the gross sales figure, for the year.

A double check procedure for restaurant consultants is to then look at the food purchases and its costs and can confirm that it matches the actual sales figures. One consultant that was hired to review a Johnny Rocket restaurant for $7,000 did the audit and put together a marketing program for the buyer. The marketing program included delivery and catering. Both of which do not normally show up on the computerized cash register.

Restaurants – Franchise:

You would imagine that franchise restaurants records would be very accurate because the franchise company gets a percentage of the gross income. The bigger ones connect up to the individual franchise and know what is happening faster then the owner. As stated above, the only sales that can be made and not declared to the computer are catering or delivery orders, which could be done without ringing them up.

Some franchises do not hook up to the individual franchise computers and do not do audits regularly. This allows the franchise to report reduced income to the company and the IRS. In case either comes to audit, they press the delete button on the computer. If you as a buyer can get access to the computer you know the numbers are correct even if they are not complete. It is impossible for the staff or the owner to change the computer records. The information can only be deleted. Again catering and take out may not be on the computer. Theft from employees can only be in the form of 1. Employees that give free food to friends. 2. Employees not ringing up an order, which is difficult when businesses put up signs saying, “If you do not get a receipt, your order is free.”

Some sellers are so paranoid of the IRS, they are not willing to show anyone their private records or computer tapes for fear that the buyer could be an IRS agent. My personal opinion, and what I advice sellers to do, is to get their books legal and honest and hire themselves a top notch CPA, like Donald Trump, and use every legal trick in the book. Martha Stewart didn’t go to jail for inside trading. They got her on lying, even if she didn’t do any lying. There are legal ways to avoid taxes so that fraud is not necessary. If you cannot find a good accountant, I will recommend one.

If you ask someone “Are you a government employee or IRS agent?” and they lie to you; that might be considered entrapment and a good possible defense in court. But, I ask you. Is it worth the grief?

The normal action of sellers, in this situation, is to require that the buyer take the business based on the recorded records and guess as to how profitable the place really is. This is a very difficult situation for the brokers and buyers, since sellers do not price their business based on these reported numbers but base their price on the real numbers.

I hope this is of some help to you in doing due diligence on a restaurant you might be interested in buying.

Auto Repair Shops:

Auto repair shops are almost as bad as restaurants when it comes to under-declaring cash. The normal procedure for most, I have run across, is to declare only the checks and credit card charges. The cash they put into their pocket. The good thing, in doing audits is that almost every one of these owners keeps their work orders-invoices. These are kept in monthly manila folders and put into a drawer or file cabinet. They never tell you that they keep these records, but they do. They even tell me, as the broker, that all backup documents have been destroyed, but they are not. When I insist that they cannot sell their business without providing these invoices, they tell me of their existence. With the sales invoices an audit of income becomes simple. Since the sellers keep them in a manila folder by months, you only have to pick monthly folders at random and total the actual invoices. Then compare them to what the “State Board of Equalization” report says and calculate what percentage of the total was declared. If you do this for a few months, a pattern will develop. Some sellers have even run a calculator tape of the month’s activities and/or written it in a private ledger. You can check the actual invoice tapes against the private ledger records to confirm the private ledger information is correct.

Real Estate Services/Repairs Contractors:

Real estate service contractors include new construction general contractors and sub-contractors, contractors that come to your house to offer repairs on your house (plumbers, heating and air-conditioning contractors, gardeners, landscapers, termite companies, roofers, carpet cleaners, cabinet re-modelers, carpet/drapery stores, tile stores, pool service providers, pool installation contractors, landscapers, etc.) These contractors, if the owner does the work himself, do not keep their job tickets-invoices after they are paid for their services, in cash. If the company has service men, then the owner is usually the dispatcher or other administrative person. In this situation seller, most likely, will have kept all of his invoices, so as to be able to look up prior history records of their customers. They might not have recorded the income on their records but they will have the basic records. Theses records may in a total mess, but the records do exist. If they do not, then buy the business based on what the seller can prove to you, or what you can reasonably estimate based on what percentage of the business you think is cash. What they are only going to prove to you is the total of checks and credit card charges, which is what the seller has declared on the tax return.

Non Real Estate Repair/ Services:

Non real estate repair/service companies include such things as large and small appliance repairs, barbershops/hair salons, nail shops, massage parlors, health clubs, pet grooming, wedding photographers, and movie theaters. These businesses usually do not even write up a ticket so unless a central cash register is used for recording income there will be no record at all. Again this is like a restaurant with cash register tapes. If the work is done at the customer’s location, then you study the serviceman’s truck schedule. If you only have some work records, from some work done in the field, you can determine what the average repair dollar volume is and then if you calculate how many calls are made on an average day, you only have to multiply the two numbers.

If we are talking about hair salons, nail shops or barber shops we can gather information about how many chairs there are, how many chairs are rented on a weekly bases and what rent the owner is collecting. If the technician is not paying rent then they are on a commission split. If you know the rental income and the income split you are well on your way to determining the real profit of this kind of business. Remember to ignore the income of the owner since you as a hairdresser or non-hairdresser owner would not get the income of the old owner. The old owner will probably rent space from you so you only add another rented chair to the income.

Retail Stores:

A retail store is a store that carries an inventory of products that they resale. Sometimes they offer installation, which then might put them into the service company instead of a retail store. The main distinction is that they sell a product instead of a service. This includes everything from Home Depot, pet stores, clothing stores, gift shops, supermarkets, vitamin stores, and sign shops. Retail stores have cash registers and daily tapes of their sales. This is handled similarly to a restaurant and should be audited in the same manner. (See Restaurant Section Above) In addition to the cash register information, you also have purchase records, which can be studied to determine the cost of the merchandise as a percentage of the selling price. With this relationship-percentage of cost to sale price known you can calculate either the cost of goods sold or gross sales if you have either to start with. A few smart owners buy some merchandise for cash in order to prevent a tax auditor from catching them by using this same manner. If the seller does this, he will admit it to you, if you ask.

When All Else Fails With a Retail Business:

The only way to protect yourself is disclosure so that you have grounds to sue for fraud. Make the seller put the real sales numbers, cost of goods percentage and any other information you are given and can not document down on a piece of paper and then have the seller sign and date the paper. If after the close of escrow you find the seller lied to you, the document will give you grounds to sue for fraud or misrepresentation. The important thing is be able to show a judge in writing what the buyer told you and to be able to show that he did this in writing. If the seller told you but never did it in writing you cannot prove it. “If it isn’t written, it isn’t so”

Medical Professions and Non Medical Professionals:

Professionals are a form of service business; except they charge a higher hourly rate and they have to keep patient/client files. Most people pay their professionals by credit card or check, because these expenses are usually tax deductible as medical or financial advice. If the seller doesn’t declare all the income, ask what back up records there are. Clients always get receipts for services and payments. There are records, find them and you will have all the income.

When all else fails in Figuring Cash Income:

If you have followed all of the earlier advice on documenting cash income and they in truth do not have documentation, you are in big trouble. You may have reached the end of your rope. You now have two options left. 1. Walk away. 2. If you still want to buy this business I only have one last suggestion. It is not fool proof but it is a method. Cash appears to be approximately 30%-35% of total sales. You could make this assumption to come up with a real total. Add 50% to the sales showing on the books, this amount is from credit cards and check sales. This is not an exact science; it is only a close estimate. Cash sales could actually be anywhere between 25% or 35%. I never figured it that close.

Cash Expenses Verification:

When you think of unrecorded cash transactions we usually think of undeclared income. Undeclared income is the biggest category, but not the only one. The other is cash expense not deducted on the books. The biggest expense item in this category is cash payroll.

Unrecorded Cash Payroll:

In an attempt to reduce the payroll expense, business owners will pay some of their staff’s payroll in cash. Why would they do this? Workman’s Compensation Insurance, FICA Taxes-Employer and Employee portion – Federal and State Income Taxes. Any accountant would scream at his client “You are missing out on a legal tax deduction.” Let me explain why someone would forego the tax write off by paying cash expenses.

When you pay an employee $100.00 per day, on the books, the employee gets about $70.00 net on his check. If you give him $80.00 in cash, he is happy. He doesn’t have to worry about going into a higher tax bracket.

The employer has to pay approx 10% to cover the employers FICA and other Federal employment taxes. You, as employer also have the workman’s compensation insurance premium. If we are talking auto repair mechanics compensation insurance alone costs 15%. If we are talking new real estate construction workers we can be talking a cost rate between 25% up to 120%. A roofer’s compensation premium is greater than his gross salary. Lets look what payroll taxes cost for a normal worker. The auto mechanic insurance rate of 25% is added to the 10% Federal costs plus the wages give us an expense that equals 135% of the wages. This comes out with the employer paying $135.00 and the employee receiving $70.00. There is a loss of $65.00 per day per employee. Some employers would rather save the $65.00 and not get the income tax deduction for the expense. Also with all the unrecorded cash the business shows, it isn’t important to have a loss on the books, since there is no need for more deductions to lower taxes. The business is already not paying any taxes.

Because there is a danger that an employee might be injured and file a claim under workman’s compensation insurance, it is common among small businesses to show part of the wages on the books and the balance in cash. This means that an employee earning $40,000 per year might have $18,000 recorded on a W-2 form, creating a very low federal tax rate or no tax due at all. Since the employee is being paid part of his wages on the books if he is injured on the job he is fully insured for accidents with State Workman’s Compensation Fund, State Disability Funds, State unemployment insurance and all Social Security benefits. This is a win-win for employer and employee, even if not for the government. As a buyer you must figure all this out, and adjust the expenses accordingly.

Unrecorded Operating Expenses:

Because owners are collecting so much cash, they need a place to spend it. If you make a major purchase, you cannot just walk in and pay cash for a car. The IRS will be notified of this cash transaction. Owners with a lot of cash will pay for all repairs, gardeners and everything for the home that costs less than $10,000, in cash. Why $10,000? That is the recording cut off that a vendor or bank is required to report when receiving funds in cash. If a business owner still has too much cash, sellers will start paying for business expenses. They start with the expenses where a service man gives a discount for cash. I found two restaurants that were paying for the hood cleaning service in cash, partly because they got a discount for paying in cash. By asking the correct questions, you can discover what is being paid in cash.

Unrecorded Labor:

Because we are talking small businesses, the wife comes in to the business full or part time. One of the children may come in to work part time. You must be aware of these employees who may or may not be paid. This is another form of cash payroll. If you have to replace these people with paid employees, these expenses need to be calculated in to the adjusted profit and loss calculation. .

Sometimes the family member is being paid some wages but not full market value. The adjustment is still needed but in this case only by the difference between actual payroll and the fair market payroll amount.

Conclusion:

It is a hard life when you own your own business; you work long hours. Many people feel that is better than the alternative, which is to work for someone else, pay high taxes, never know if you will be laid off and after years of hard work, never have anything to show for it all.

If you are going to buy a business with your hard earned money, you want to make sure you get what you paid for. Many people believe it is all right to cheat the taxman but otherwise are very honest citizens. Others feel it is all right to cheap any poor sucker that comes along. Don’t be a sucker, do your due diligence and get what you paid for.

Then build your new business into something you can be proud of and enjoy. While building your new business make a point to study everything you can about Tax planning, tax avoidance and reducing taxes legally. I started in College learning about the tax codes, and there are so many ways to save taxes legally, you would never believe it. You will sleep better at night, I promise you. Then 10-20 years from now when you want to sell your business, you can ask top dollar and get it. This because a buyer can do a simple due diligence and know that your business is doing exactly what your books say you are doing.

DO YOUR DUE DILIGENCE and buying your own business can be a pleasant and rewarding experience!

About the Author

Willard Michlin is an Investor, Business Broker, California Real Estate Broker, Accountant, Financial Distress Consultant, Well knew Public speaker and Administrative/Business Consultant. He can be contacted at his Ventura, California office by calling 805-529-9854 or by e-mail at Broker@kismetbusinessbrokers.com See other articles by Willard at http://www.kismetbusinessbrokers.com

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Information You Must Discover About Insurance For Travel Trailers – 5 Things To Look For

Touring out on the open highway in a journey trailer is a dream that thousands and thousands of individuals share. Lots of them are lucky enough understand that dream. Some achieve this as weekend warriors, out to pack as a lot fun as they will into the quick space of a weekend. Others take a yr off to travel, leaving their job and other obligations for a life on the road. Nonetheless others wait until they retire, then take off for months or years at a time.

Regardless of the approach you journey or for what causes, in case you who personal a journey trailer you already know that the secure wager is to get it insured. In a manner, insurance coverage for travel trailers is a bit like insuring a house AND a automobile at the identical time. For this, special travel trailer insurance is needed.

If you personal a travel trailer need to buy insurance coverage before you get out there on the street, listed here are 5 issues to look for when searching for insurance for travel trailers:

1. Determine which sort of towable vehicle you will have or plan to buy:

Travel trailers differ from motorized recreational automobiles (RVs) solely in a single necessary approach: they lack their own inside motor and braking system. These trailers must be attached to and/or towed behind one other vehicle such as a van or pickup truck.

Towable leisure autos usually fall into considered one of three categories: travel trailers, folding camping trailers/pop-ups, and truck campers. In case you aren’t a hundred% sure precisely which kind you can be shopping for or which type you own, listed below are brief descriptions of each:

* travel trailers: these range in size from 10 to 35 feet long. They have a hard outer shell and generally have extendible sides to create a larger living space.

* folding tenting trailers/pop-ups: these are the least-expensive type of RV. Because the identify implies, they pop-up or unfold during setup.

* truck campers: also referred to as slide-on campers, truck campers clamp onto the back of a pickup truck.

2. Decide which varieties of protection you’ll need:

RV insurance coverage has many of the same types of coverage options as does conventional automobile/auto insurance. Choices that you’ve out there to you embody: uninsured motorist, accent coverage, liability, and limitless towing coverage.

3. Think about any additional sorts of specialty protection you might want:

Along with the usual types of coverage accessible which can be listed above, you will also haveĀ  the chance to purchase any of numerous specialty insurance coverage protection items, similar to: whole loss substitute, 24/7 roadside assistance, emergency expenses, full-timer coverage, fire, flood & theft, low branch collision, and private gadgets replacement. Choose those that meet your anticipated needs.

4. Understand that you must search for a specialty RV insurance agency:

As you store for the most effective journey trailer insurance coverage rates, make sure that to get quotations from multiple insurers. Particularly, get quotes from a mix of insurance company varieties, together with from those that specialize in RV insurance and from a number of of the bigger, basic auto insurance companies. You never know where the most effective rate will come from.

5. Shop and compare quotes with at least three-5 insurers:

Be sure to compare quotes from at the least three-5 insurance companies. It is rather essential that you get equal (apples-to-apples) quotes from each company to be able to easily evaluate their rates. Checkout more other useful articles about budget car insurance, international auto insurance and military car insurance

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Reviews Questions and Answers

DRIV3R: MIxed Reviews?
Does anyone think that DRIV3R got a lot of crap for no origin. Driver 3 lets you go into at least 20 different houses, excluding significant entry places. Driver 3 was a big step in those kind of games. Even though at the time GTA: San Andreas come out, this game is much better. It has..

Driver reviews of the Smart motor?
I wanted to hear from people who have a Smart sports car, is it reliable, how is the cost to keep it running do you recommend it just type into search box year model problems type into turn out box Consumer reports year model reviews year model ..

Driving instructor for road examination reviews within MI?? i call for a intructor specifically not strict…?
somwhere near farmington hills or west bloomfield please i need sum instructor “> You obligation a strict instructor so that you KNOW what you are doing as opposed to just learning it. Being a sheltered driver is better for everyone so..

DSi reviews please help out?
Should i just buy a ds lite or a DSi, why should i buy one over the other The DSi is the third iteration of the DS, and i think it is one of the best systems out there! first, the matte finish is really nice, and the SD card slot is one..

DSLR camera Review? Nikon? assist please?
why so much hate towards the D5000? i mean there is other a camrea a little nicer then the one you have, thats simply how it works. and i get the differences between the D90 and the D5000…. is the D5000 really just an awful camera like ive see in some reviews or do..

Due to the great reviews Britney’s tentative cd is delivery, will you purchase it or download it?
Neither. Why? Because her music sucks. End of story. Who even cares about her anymore!! She’s previous it now. Just another cog in the wheel of pop entertainment. A broken cog,i may give lol. I’ll admit I will buy her Cd.. I..

Dumb blonde’s year surrounded by review?
A Blonde’s Year in Review January – Took new scarf back to store because it be too tight February – Fired from pharmacy job for failing to print labels…HELLOOO!…bottles won’t fit in printer. March – Got really excited…finished jigsaw puzzle contained by 6 months….box said 2 – 4 years April..

Dummer Vermont Campground review please… we may military camp in attendance but don’t know how private it is or loud…?
Any reviews or helpful information would be great. We just don’t want to be sitting in the middle of a bunch of stranger’s tents.. profusely of partying goes on there its great! (br)(br)

Dunas club aparthotel corralejo fuertevntura any reviews or comments?
mid 50`s couple enjoys eating out diving fishing and shopping For reviews go to: http://www.holidaywatchdog.com/211-Corra… and http://www.tripadvisor.com/Hotel_Review-… Not sure if right hotel. http://www.tripadvisor.com/Hotel_Review-… (br)(br)

During software design review please tolerate me know the adjectives errors done within internalized (multi-lingual) appln?
Common errors can be for application designed in any technology like Microsoft and Sun Technologies Memory leaks is the most adjectives. Page faults is very common. (br)(br)

During yesyerday’s review of the Furrey play,what be the Lions and Vikings chitchat to respectively other almost?
Their golf game? Who had the nicest cars? Which teams have the best-looking cheerleaders? Could a real viking beat a real lion? about how nice it was to have The Purple Jesus wager on, and their mutual hatred of the..

DVD Burning Software Reviews? Is at hand a Catch?
Ok check this site out, it has reviews in it but what has me confused is that they dispense you 2 options to download the software either by paying for it or getting it for FREE. I figure at hand gots to be a catch. Either that or maybe the free..

DVD Reviews?
I’m looking for movie and DVD reviews which allow me to search or sort by viewer rating. I don’t mean ratings similar to PG 13. Just ratings like 4-1/2 stars. www.rottentomatoes.com has a lot of reviews, although they are largely by professional critics. However, they do also have a place for fan reviews…

D-war movie review?
Looking for reviews of this movie. Anyone seen this one? http://www.imdb.com/title/tt0372873/ Its Boring and predictable but it has a good story. It is a movement romance movie. It has great visuals, sound effects, and story but i give this movie a 6 out of 10 overall but dun listen to..

Dwight Sings Buck Review…?
I just purchased the new Dwight Yoakum Cd Dwight sings Buck A must for all you Buck Ownes Fanatics. Of course Dwight doesnt do sprite to some of the songs, but all in all It is a great Cd which i truly recomend to anyone who’s a country aficionado. 1.My heart skips a beat 2.Fooling around..

E.L.F Makeup reviews?
Just bought alot of makeup from E.L.F, the prices shocked me. Is it any good? omg yes! I love ELF! Yes. They are amazing. I love their eyeshadow duos, they are just the right amount of pigment. Not too murky, not too light. It’s amazing. The nail polishes? Great. Super pigmented, also. ..

E.L.F mascara product reviews?
Has anyone here tried any of the E.L.F (www.eyeslipsface.com) products? I’m particularly interested in the eyeshadows and brushes. Thank you Makeupalley.com has reviews of Elf products. the eyeshadows will not stay on very well they have no pigmentation and no concern how much eyeshadow primer you put on, it will not stay on. You..

E.L.F. Make up reviews?
I want to know the pros and cons of this make up. Are they good quality? I hear some good things about them but I just considered necessary to hear some more reviews before I go out and buy them. Over all yes, considering the price. There is better make-up out nearby, but..

Eagle Scout Board of Review: Can it be done chronological the 3 month splotch of my 18th?
I completed my Eagle project on November 6th, and submitted the full Eagle application to council on December 3rd, with my 18th birthday being on the 6th. now as you may know you hold 3 months after your 18th to attend your board..

Early Review: apply by nov 30; my Junior year or Senior year (read first)?
I would automatically assume that it is Nov 30 of my Junior year, since otherwise I would apply during the summer afterward. However, next to the Early Review description, it says, Since the FAFSA is not available until after the 1st of the year, applicants..

Earth science midtrem review oblige?
the following are just a few questions i answered wrong. When the time of day for a enduring ship at sea is 12 noon, the time of day at the Prime Meridian (0° longitude) is 5 p.m. What is the ship’s longitude? 1. 45° W 2. 45° E 3. 75° W..

Earth science review question?
A student incorrectly measured the volume of a mineral sample as 83 cubic centimeters when the actual volume was 89 cubic centimeters. What was the student’s approximate percent deviation (percentage of error)? 1. 6.7% 2. 7.2% 3. 9.3% 4. 14.8% Where is metamorphic rock frequently found? 1. on mountaintops..

Earth Science review sites?
Hey does anyone know any good earth science sites? I’m specifically looking for sites that have multiple choice exams/tests. That GRADES it for you. I want to see how very well I know this subject and look over the areas in which I got wrong. Please reply. Thanks! I’m giving 10 points based on..

Easton SV12 SSV1B Bat Review?
Im looking to get the 2009 Easton SV12 SSV1B Fastpitch Bat, cant really find any reviews on it though. If you know any where i can look at reviews or have a personal review on this bat it would be a great aid. Thanks. Product Description Easton SV12 SSV1B Fastpitch Softball Bat ..

Easton Synergy SE6 Review?
I plan on buying new ice-skates. The ones I like are the Easton Synergy SE6 Senior Skates. I was merely wondering if anybody ahs used these, and what you think of them. Suggestions for other skates are welcome. Thanks I haven’t tried them personally. Had a pair of Bauer Supreme..

Easy 10 points, conair shine effects reviews?
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Easy chemistry review quiz?
Light will travel through liquid solutions; what are three other properties of solutions? vapor pressure lowering, freezing point depression, boiling point elevation, and osmotic pressure

Easy Points! Just review poem! Like it or you don’t!?
Exhilarated, When I saw your face Such a familiar memory But not visited lately Expressing ambience That had to wait Laughing like you Had never moved out Anxiety, Something was different About this time It was you But I was unsure of what Nerves, apprehension Something didn’t belong Pain Something..

EasyStraight 1 Week Straightener – Reviews?
http://www.walgreens.com/store/product.j… My mom is skeptical but I think it sounds awesome. I got excellent feedback from one person. What do you feel? i dont think it would be very in good health for your hair. i mean think just about it. your using that strong of chemicals that..

Ebay sound out: How do I attach the cnet review to the cell phone im selling?
well let me just put it short. im selling my lg chocolate on ebay, never open blah blah blah anyways i notice that some of the other sellers have a cnet review surrounded by their description… example: http://cgi.ebay.com/FREE-LG-VX-8500-Choc… and im trying..

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Electric Car Questions & Answers

I asked who kill the electric sports car?
I listed a sourcehttp://en.wikipedia.org/wiki/Who_killed_the_electric_carBut of the 10 replys I got, 9 said the battery technology wasn’t within.Yet in the video & even in the source it states the battery WAS NOT the backfire of the car. (GMs EV1 prototype)By the way…

What kill the EV1 and other electric cars?
Was it the car companies? oil companies? the government? or the consumer?I believe that it be the consumer because with enough people we the consumer can money anything. Agree? Politics, pure politics, killed the electric car.All 4…

How do you interweave an electric saloon glass up?
The electric window to one side of the car has gone comatose. It is now stuck in the down position but the other window side works fine though.I checked both fuse locations inside the motor and hood but none of…

Isn’t it time presently for the Electric Car ?
If I were president today, a lot of things would not be happening that are cause Americans so much grief today.One is the allowing of oil subsidies and record petroleum profits while Americans head toward $4.00 per gallon at the pump.One…

Is it possible to procure an adaptor to run conventional uk electric products (3 pronged plug) stale a vehicle lighter?
Try the maplins web site or store, staff are really helpful and they have gadget for everythingFound this item for you 2nd link should take you too it and here is the info on itMP75 12Vdc Inverter Information:Converts 12Vdc to 240Vac…

Why don’t we lately own electric cars already?
Ok we have the technology, just that Business Tycoons would loose their “money” so, why doesn’t the Government Enforce electric cars and recycle all the cars we enjoy now?I really would not mind not seeing a society with just adjectives electric…

Do you presume I’ll do resourcefully selling electric cars contained by the South?
This question can be answered by anyone but I will be paying closer attention to what southerners have to say. I live within a nice size city in Alabama and I’m interested in selling EVs. I have the bread…

my coupé will start but no electrics?
I insalled my original battery after it being used by a freind, presently the car will start and move, the headlights and horn work fine, but NO other electrocs will work, no idicators or electric windows, these all works similar to…

Are in attendance any modern 100% electric cars near 4-5 seating?…what’s the price?
I need something that is already on the market…100% electric.I also have need of to know the price…$$$ With between 4-5 seats.i would love a website too if available there ARE no 100% electric cars on the market. and nearby…

do electric cars use alternators?
how do electric cars work?Do they use an alternator?Thanks for your help If you think of the electric motor being an alternator when providing regenerative braking, ie when slowing down the motor operate in “reverse”, putting energy back into…

does a powerful stereo reduction a hybrid or electric car’s horsepower?
do extra electronics; audio, video, tools, toys, …. have an effect on a hybrid or electric car’s horsepower? sorta like the a/c when turned on. Yes. The more amps the device draws the less available for the saloon so the…

does a powerful stereo fade away a hybrid or electric car’s horsepower?
do extra electronics; audio, video, tools, toys, …. have an effect on a hybrid or electric car’s horsepower? sorta like the a/c when turned on. yyyyyyyyyyep

Which are the most popular electric cars contained by US?
There is only ONE electric car in the U.S. And it a moment ago came out.The Tesla Roadster

what IS a hydrid or electric motor?
what’s the difference between the 2? Any vehicle that combines two or more sources of power that can directly or indirectly provide propulsion power is a hybrid. Most hybrid cars on the road right now are gasoline-electric hybrids. An electric…

is it legitimate to drive an electric motor…?
on the public roadways in Nevada, USA? like all states, nevada doesnt protection how you power the car as long as all state regulations are met.

What would it give somebody a lift for you to buy an Electric Car?
Any feedback on this appreciated…here’s what’s going on with electric cars now- do any of these cars interest you?http://electriccarinsider.blogspot.com ———————————————-Yes, I would love to drive a Tesla (0 to 60 in 4 seconds, 250 miles between charges.) http://www.teslamotors.com*Sure, at hand…

If i can solve the electric car’s problem would anyone jump for it?
Thing is, I do have a possibility to go on for solving the electric cars problem of running low on power , but it involves a pwer source that hasn’r been invented on the other hand of which i’m working on…

what are the best ways for an electric car/truck to power itself?
alrite? ideas forward please.this is just to expand the mind. It is not good to hold a motor generator to charge the batteries. The change from mechanical to electrical power will cost u roughly speaking 40% and from electrical to…

When will you contestant draw from us bad grease and install curl, solar, electric cars?
Where did you see a wind-powered electric car? I have seen solar-powered electric cars. But they are totally unworkable…unless you want to drive across the Mohave Desert and nowhere else.

What is the given name of that latest skinny electric coupé?
I want to buy an electric car. Saw a skinny one at the 2007 SF International Auto Show. Can’t remember the name or who makes it. Anybody know? First you enjoy the Corbin Sparrow also known as…

Couldn’t glorious gas prices be the pefect opportunity for the electric vehicle ?
Why doesn’t anyone promote the electric car ? Is it because the oil companies have made a backroom operation with manufactures to trash the idea ? Will the Japanese turn to it ? Any thoughts here ? …

How do you convert a regular vehicle to electric?
I heard Tom Hanks and others celebrities are endorsing Electric Cars…how do I do it….I abhorrence the idea of gas, hybrids, other crap the auto & oil industries try to peddle at me like a street hustler! BTW anyone else see…

Tesla motors Electric saloon go 220 miles on a single charge. That sucks!?
the new Tesla car found here http://www.teslamotors.com/design/gallery-body.phpcan go 220 miles on a single charge. dont take me wrong that is a giant leap for electric cars, but really what if you wanted to make a 400 mile trip. you would enjoy…

Why don’t adjectives 3 candidate make conversation roughly electric cars?
They all talk about snake corn and solar tec. but none of themObama Clinton and Mccain mention anything about getting electric cars on the street. in my oppinon . If they realy wanted they could enjoy all cars electric in…

Electric powered sports car beside small generator converted to feat as an alternator? Gas going to be $7/gal by 2012?
4 independent electro-magnetic motors (similiar to Remote control car motors) hooked up to a bank of batteries. The wheels/ i.e.m.m.s hold pulleys (like on gasoline motors) which are connected by belts to alternators that recharge the battery cells while the vehicle…

What happen to the movie in the region of the distruction of the electric coupé?
Could it be the same people that took the model out of the Smithoniom Musium and recalled adjectives the experimental that they were allowing for personal use by a limited number?? http://sustainability.tribe.net/thread/e531f83e-0d36-4ee6-81d9-241de142edba

Whenever I find out of my sports car, I bring back an electric shock from my coupé door! How do I stop the psychosis?
This started happening about four days ago and is CONSTANT. After a drive, when I get out of the vehicle and I try to close the door I get a significant shock. How do I prevent it? If your seats…

Electric cars ..do you charge the freestyle within a special “outlet” from the home, how far can you drive on a
single charge and where do you charge up if you are away from home? Would charging an electric car cause a significant increase on your electric bill? I don’t know much at adjectives about this type of vehicle and I don’t…

Whats the best technology developed contained by lingo of electric cars to date?
I know they are starting to produce cars that run on purely electric power. The Tesla for example is an high performance car currently surrounded by production which has couple hundred mile range. But what is the best technology out there…

How are fuel (road usage) taxes calculated for general public who drive electric cars?
“State makes big fuss over local couple’s vegetable oil car fuel”, March 1, 2007http://www.herald-review.com/articles/2007/03/01/news/local_news/1021491.txt They aren’t. It’s not a problem right very soon because there are essentially no electric cars. But cars that run on untaxed fuel are…

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I just arrived in Canada. How can I get approved for a car loan?

Canada is known for it’s vast land and multicultural diversity.  Many people immigrate to Canada by the thousands each year.  They come here in search of employment and opportunity.  A lot of new immigrants want to start working as soon as they land.  They search for jobs and work hard to start saving some money.  Most of the time they have some family that they can stay with until they can get on their feet but the one thing that may hold them back is transportation.  While large cities have adequate transit systems, some cities don’t cater to travel outside of the downtown hub.  This is difficult for those who need to get to work but don’t have the means to get there.  So, the next logical step is to get a car.  Here’s where most people get discouraged.

 

Having been here for a couple months, even with a steady job may prove to be daunting for immigrants

when they discover that they have not been able to establish any credit yet.  They may walk into a dealership and expect that because they can afford a car that they are able to get the car they want.  Maybe back home the process is different and people are often surprised on how much their credit or lack of credit plays a role in getting approved.  Even with some money down, the new car they so desire is unattainable as they haven’t been able to establish that all so important credit.  The best start when arriving is to apply for a credit card with a low limit.  Use it and pay it monthly so you can get a start.

 

When it comes to the all important car, there are options out there.  Luckily there are dealerships that cater to bad credit or no credit customers.  They will finance the customers at a higher interest rate but usually for a car that they agree they can afford monthly.  They can then start to make regular payments on a large ticket item like a car where their payments help their credit score develop because they are showing good habits when it comes to credit.  After 6 months to a year they can revisit their score and now re-negotiate their current loan to get a more favourable interest rate.  Because they have been able to prove that they can pay their loan on time they are now in a better position than when they just arrived 6 months or a year ago.  Most importantly, the job that they obtained an needed was able to happen because they had the transportation to get there with their car loan and dealership.

 

If you are looking for a completely different car buying experience. You should try us at Manor Contours, located in the heart of Toronto, we are your independent car broker. With our small but professional team of sales consultant we can help you get into your next new or used car at the best possible deal. Visit us online at http://www.manorcontours.com for more details.

About the Author

Manor Contours Ltd is Toronto’s premier automotive broker service, we understand your car buying frustrations therefore we try our best to bring you a pleasant car buying experience. Visit us online at http://www.manorcontours.com for our contact information.

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