Aug 2011
I have been delibrating whether I should take over my Dad's business. I am really stretched to the max to the extend I am thinking of whether to stop my own job. Anyway this is what I have considered
- My Dad's business annual turnover has deterioated from 1 Mio in 2007 to 600-700k last 2 years. My Uncle told me this and I agree with him, unless turnover is 3 Mio and above, there is a big opportunity cost to do so
- I don't have the strong domain knowledge of my dad's business (Precision engineering - carbide blanks/rods/diamond wheels)
- I can ease into Sales & Marketing, but my strength's s in business analsing and with the investment I have, I should concentrate my time & efforts on this
I have decided to continue with my present job & extra time for share investment and to find a potential buyer for my Dad's business (won't be easy).
And I have to do it fast. Why ? There are too many risks (for eg. my dad surbordinate to hankie pankie with the inventory / risk that my dad surbirdinate leave => after which the value of the company is almost zero as he is the one doing the operations of the job now/ surbordinate jump ship/ unmotivated), and monthly business may drop.
What's next : Super busy again
Dad's business
- power of attorney
- getting ready executive summary (need to get investment merits)
- look for investors
- continue to chase for payment; The last 2.5 months, I have managed to reduce accounts outstanding by 20+%. (did not expect that either) that from 390K to 304K. (about 12 K was errenous accounting - already paid like SuperU/HH). And I hope to reduce this by another 30K at least. 270K
- his dormant business have to get it settled wtih another shareholder, otherwise will be paying 2K+ for audit etc yearly ($$ wasted)
- Invoice paper
My property
- choose lightings
- choose curtains
- miscellaneous (confirming with designer + hanger)
Others
- get payment for mortage introducing fee
- help my mum/sis with reno + hospital bed/wheelchair etc/ medical checkup etc
I have been delibrating whether I should take over my Dad's business. I am really stretched to the max to the extend I am thinking of whether to stop my own job. Anyway this is what I have considered
- My Dad's business annual turnover has deterioated from 1 Mio in 2007 to 600-700k last 2 years. My Uncle told me this and I agree with him, unless turnover is 3 Mio and above, there is a big opportunity cost to do so
- I don't have the strong domain knowledge of my dad's business (Precision engineering - carbide blanks/rods/diamond wheels)
- I can ease into Sales & Marketing, but my strength's s in business analsing and with the investment I have, I should concentrate my time & efforts on this
I have decided to continue with my present job & extra time for share investment and to find a potential buyer for my Dad's business (won't be easy).
And I have to do it fast. Why ? There are too many risks (for eg. my dad surbordinate to hankie pankie with the inventory / risk that my dad surbirdinate leave => after which the value of the company is almost zero as he is the one doing the operations of the job now/ surbordinate jump ship/ unmotivated), and monthly business may drop.
What's next : Super busy again
Dad's business
- power of attorney
- getting ready executive summary (need to get investment merits)
- look for investors
- continue to chase for payment; The last 2.5 months, I have managed to reduce accounts outstanding by 20+%. (did not expect that either) that from 390K to 304K. (about 12 K was errenous accounting - already paid like SuperU/HH). And I hope to reduce this by another 30K at least. 270K
- his dormant business have to get it settled wtih another shareholder, otherwise will be paying 2K+ for audit etc yearly ($$ wasted)
- Invoice paper
My property
- choose lightings
- choose curtains
- miscellaneous (confirming with designer + hanger)
Others
- get payment for mortage introducing fee
- help my mum/sis with reno + hospital bed/wheelchair etc/ medical checkup etc
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