$$$ can there be a decent income $$$

[weaselboogie]

My old shop is that way right now. Owner is trying to sell and is giving the potential buyer inflated financial statements. The buyer is smart enough to realize this and has told my old boss that when he wants to give him a REAL financial statement, then they'll talk. My old boss could've done great work as a spin doctor. He's a master of the old 'half truth'.

 

[gnemmas]

$90k annual gross sales, you might be able to make 35k wage. But you can make more just working as designer at $17/hr, 40 hr week without risk.

Business value generally breaks down to: FF&E, inventory, trade name, goodwill.
Furniture, fixture , equipment & inventory are fix assets which should be listed & caculated accurately. Trade name & goodwill are intangible assets that are valued according to historic sales & profitabily of the shop.

$10k/mo is about break even figure after paroll. As certain overheads are fixed, the more sales the higher net profit margin. If you can reach $40k/mo. You can net $4-6k/mo. plus salary. That is pretty good.

When evaluating a business, look at the up-side protential. You can going in cheap, build up the business and accumulate asset. Or pay a premium for a successful business, let the profit pay for your investment.