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@Edmonton

Total investment consists of three parts: purchasing price, inventory, and start up costs.

1499728inc(bank)
Purchasing price shall includes goodwill and equipment. Goodwill is the price you pay for an existing business with established reputation and customer base that brings you stable flow of revenue. equipment is physical assets that belong to the business (everything in the store except the building).

Inventory is the amount of merchadize that allows a smooth transition during ownership change. In your case, flours, vegetables, cooking suppliers, etc. The level shall allow you to sustain the business operation until the next delivery date. (Few hundred $ in a pizza store).

Start up costs may includes rent deposit (1st and last), hydro (equivalent to 3 months of the hydro bills) and other utility deposits, legal expenses if you use a lawyer, borrowing costs, like loan application fee, assessment fee for your equipment to be evaluated, etc.
(#826420@0)
Last Updated: 2002-10-30
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Replies, comments and Discussions:

  • 工作学习 / 事业与工作 / Hi guys, how about but a pizza shop? can anybody give me some advice? Thanks! -betterbetter(越来越好); 2002-10-30 (#826051@0)
    • How about buy a pizza shop! -betterbetter(越来越好); 2002-10-30 (#826053@0)
      • It is a competitive business. There is a difference between franchised and independent. but more expensive to operate. You need to pay franchise fee. -1499728inc(bank); 2002-10-30 {552} (#826192@0)
        With franchised, such as Pizza Hut, 2for1 Pizza, you enjoy an established brand name and reputation so that it is less risk

        Independent one on the other hand has less overhead costs, but risky. Many pizza stores rely on loyal large clients such as school order every few weeks, corporate order for party.

        If you do not have business experience, I would recommand you start from small, choose an independent one first. They tend to be smaller and easy to run. If failed you do not lose too much. The price should no more than one year net profit.
        • Thanks. How much money need to run a franchise pizza store?! -betterbetter(越来越好); 2002-10-30 (#826238@0)
          • Total investment consists of three parts: purchasing price, inventory, and start up costs. -1499728inc(bank); 2002-10-30 {854} (#826420@0)
            Purchasing price shall includes goodwill and equipment. Goodwill is the price you pay for an existing business with established reputation and customer base that brings you stable flow of revenue. equipment is physical assets that belong to the business (everything in the store except the building).

            Inventory is the amount of merchadize that allows a smooth transition during ownership change. In your case, flours, vegetables, cooking suppliers, etc. The level shall allow you to sustain the business operation until the next delivery date. (Few hundred $ in a pizza store).

            Start up costs may includes rent deposit (1st and last), hydro (equivalent to 3 months of the hydro bills) and other utility deposits, legal expenses if you use a lawyer, borrowing costs, like loan application fee, assessment fee for your equipment to be evaluated, etc.
          • Every franchise is different. Some require a lump sum payment before you start, others you pay monthly as part of rent. -1499728inc(bank); 2002-10-30 (#826484@0)
            • How can you know so much? Do you run this business? Is 35 thousand dollar enough ? -betterbetter(越来越好); 2002-10-30 (#826571@0)
              • You shall focus on how much net income that business will bring you. Minimum $50,000/year. -1499728inc(bank); 2002-10-30 {621} (#826607@0)
                You are looking at, say, 10 hours a day, 7 days a week, that's 3650 hours/year. $50,000 is equivalent to $15/hour. You are going to put up perhaps all your savings, your energy, sacrifice your personal and your family life. You worth minimum $15/hour. Don't sell yourself too cheap.

                As to how much you pay for the business, it doesn't matter very much. As long as you think you can sell it at the same price later when you want to. It is just a deposit to that sense.

                What I expained to you applies to all retail business. I've never had pizza shop experience, but I know business well. I am the bank. Remember?
                • Good Point ! Thanks -itsnice(ItisNice); 2002-11-6 (#839837@0)

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