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Rachaelm26, post: 260448, member: 111453 wrote:
Hi all,
Thankfully stumbled across this fantastic resource when searching for info to help with due diligence.

Have been managing other people’s businesses for the past 25+ years and have decided to take the plunge and buy something for myself.

Every business I have considered has made a little more than a loss.
Considering this is to benefit the owner and not the tax man.
How do I know that it will turn a profit? How much cash have they taken out.

Is it worth giving up the lifestyle of a $100k job and risk it all to feed my soul?

Any advise or pouting me in the right direction will be much appreciated.

Thanks in advance,

If they are for sale and running at a loss I would be concerned, most business’s knowing they are coming up for sale, stop the tax avoidance approach and try to make it look like they are running at a healthy profit.

Before spending dollars on an accountant, ask the owner, we know the answers will be dodgy, but unless they can give a half reasonable reason for the loss (ie them taking high wages),then walk away before spending money. If what appears to be a good reason, then approach an accountant, you don’t want to be running to an accountant if the business is an obvious flop and not worth your time and effort.

Don’t worry about giving up the 100K plus job, I did that many moons ago, and it is surprising how little my life style changed in fact two aspects of it improved to such and extent, I would never look back at the $’s.

My BIG concern about your question though is you state you have being running other peoples business’s for 25 plus years, and you don’t know how to recognize a good or dodgy business???? Maybe you are not cut out to run a business.