Business Formula

[capco1]

I'm looking at a few different business opportunities and the asking price is well within reach but my question is this, does anybody have a formula they've used for reserves? I know that just buying the business is only part of what is needed but how do you determine the amount of reserves one should have to feel comfortable? Thanks.

[blizzard]

sound like you need to work in those buznits you want to buy.

[torrenova]

I use a Bt5m answer for people coming over for the first time in business. If they have Bt5m, allocate 0.5m for living funds to cover 6 months and research the market then spend a maximum of 3.5m on a business keeping a minimum of 1.0m in the bank. This would be for cash businesses where a return on investment comes from or near day 1 of trading. Other businesses would need far more in terms of reserves.

[backflip]

Here's an easy way to double your money: fold it in half. My advice was provided free of charge, and it's worth every baht you paid for it.

[ray08]

I'm looking at a few different business opportunities and the asking price is well within reach but my question is this, does anybody have a formula they've used for reserves? I know that just buying the business is only part of what is needed but how do you determine the amount of reserves one should have to feel comfortable? Thanks.

I take it the business is profitable to begin with ?, so you would be buying , either Goodwill, fitouts, machinary or numerous other items ,that puts you behind the 8 Ball allready , you really got to work the downside before any upside ,

including say no profits for 6 months , can you live ?

have to sell business in a fire sale , can you afford the loss

Very hard to have a formula as no info on business , just work out everything very conservatily and them a bit more

for good measure