I am looking to buy a coin laundry and they say the gross is about 10k a month with the net being around 4k a month. Since this is a call cash business how can I confirm that the gross is actually 10k a month? She offered utility bills but that would only confirm expenses. Any help would be greatly appreciated.
Chris
2006-11-06 02:18:50 · 2 answers · asked by jhahn1234 2 in Business & Finance ➔ Other - Business & Finance
You could ask to see her taxes from last year to see how much income she claimed from that source.
Maybe the machines have a counter of some kind that shows how many uses or hours of use.
Ask to see her deposit(s) for this month.
2006-11-06 02:27:11 · answer #1 · answered by Phoenix, Wise Guru 7 · 0⤊ 0⤋
You need to see the sellers "Schedule C" from at least 3 previous tax years. And don't go by what they say is "gross income". Like you said, there is no way to tell with cash, they could be filling you full of crap !
Do look at their bills and see that they were paid in full monthly for at least 3 years. Was there anything left in their checking after that ? You have a right as a potential buyer to view their disbursements and they as sellers should understand this and offer it to you as soon as you ask! Don't forget to check out the maintenance issues / costs. These machines break down on a whim and customers are just plain rude and will trash what is not theirs! (I have coin laundry as well) Be ready for maintenance even if the seller says its been great!
Can you read people ? Do you get a bad feeling from them when you talk of the monies ? This sometimes help in making your decisions !!
Good Luck and go with your gut feelings !
2006-11-06 11:16:15 · answer #2 · answered by Kitty 6 · 0⤊ 0⤋