milee
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Post by milee on Jan 13, 2014 16:02:49 GMT -5
Actually, if you write a check for you to put into your personal account as income you also have to take out taxes, Medicare, and other withholdings and send them to the appropriate places while reporting your income to the IRS. So no, it's not as simple as just writing a check. If you're doing things legally anyways. not necessarily depends on how the business is set up....and whether or not the checks are marked as distributions Or draws.
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justme
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Post by justme on Jan 13, 2014 16:02:50 GMT -5
Actually, if you write a check for you to put into your personal account as income you also have to take out taxes, Medicare, and other withholdings and send them to the appropriate places while reporting your income to the IRS. So no, it's not as simple as just writing a check. If you're doing things legally anyways. not necessarily depends on how the business is set up....and whether or not the checks are marked as distributions True. Highly doubt loony's are though.
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tloonya
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Post by tloonya on Jan 13, 2014 16:03:26 GMT -5
I'm nosy. I hope someone does! IMHO, the book value of the business is about $42k. Not terrible. As long as the business can pull in about $160k a year, you should be back up to $100k in 3 or 4 years. Then it is all gravy. WOW! Arch, what book value? Whats my business book value?
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Deleted
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Post by Deleted on Jan 13, 2014 16:05:54 GMT -5
$42k, so inventory at wholesale, cash in the bank, few grand for fixtures and whatnot, right? No value for projected sales, but no deduction for future lease payments? Not for book value. Might get a little bump in those for other valuations methods. IMHO, if a valuation company came in today and gave you a value for your company is would be about $35k. Cash would be valued at full value. Inventory would be valued at less than wholesale. But I am not a valuation expert. But to give you a comparison, the company I work at is valued yearly to determine share price. Last year we had a book value of $29million and our valuation came back at around $15million
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Post by Deleted on Jan 13, 2014 16:07:09 GMT -5
IMHO, the book value of the business is about $42k. Not terrible. As long as the business can pull in about $160k a year, you should be back up to $100k in 3 or 4 years. Then it is all gravy. WOW! Arch, what book value? Whats my business book value? Don't know. Add your cash in the bank, plus fixtures in the store, plus what you paid for your groceries you are selling.
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Deleted
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Post by Deleted on Jan 13, 2014 16:12:16 GMT -5
How much does a valuation run for a small business? I have to do one annually if I want to buy back shares. I'm not worrying about it this year, but the long term plan is to purchase the shares back and elect S corporate status to get pass through taxation. no idea. You want to hire someone with some expertise, but i can't imagine it would take someone all that long to go through your financials and do some market analysis.
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Deleted
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Post by Deleted on Jan 13, 2014 16:28:08 GMT -5
$42k, so inventory at wholesale, cash in the bank, few grand for fixtures and whatnot, right? No value for projected sales, but no deduction for future lease payments? Not for book value. Might get a little bump in those for other valuations methods. IMHO, if a valuation company came in today and gave you a value for your company is would be about $35k. Cash would be valued at full value. Inventory would be valued at less than wholesale. But I am not a valuation expert. But to give you a comparison, the company I work at is valued yearly to determine share price. Last year we had a book value of $29million and our valuation came back at around $15million Of course Twitter's book value is about $635million and their valuation is about $32billion.
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NotSoFair
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Post by NotSoFair on Jan 13, 2014 21:25:28 GMT -5
Dark, I have been following your business updates, although I haven't posted anything about it before. I wanted to congratulate you for pulling it off and wish you luck in the future. Hope this documentary gives your store more exposure and business. I would have bought toys from your store, only I don't have any small kids that I need to gift to. Good luck again.
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tloonya
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Post by tloonya on Jan 14, 2014 7:56:10 GMT -5
Dark, please, come up with daily sales figure. I am so curious how much your daily sales...I am supposed it is not a secret since you told us a lot of other things. Thanks
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milee
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Post by milee on Jan 14, 2014 10:11:05 GMT -5
It will be interesting to see the daily sales figures, but for a business like this I'm not sure they are terribly meaningful. Not only is this a small business, which means that individual sales can spike the results, but it's so cyclical/seasonal that daily sales wouldn't show a helpful pattern. If you had enough history - more than a year at least - you might be able to use the daily sales figures to target days to close or offer special deals to increase volume. But otherwise, I think the monthly sales figures are about as granular as you'd need for a while.
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Deleted
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Post by Deleted on Jan 14, 2014 10:23:35 GMT -5
Daily sales totals for which day loony? since inception. scheduled out in 15 minute intervals.
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tloonya
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Post by tloonya on Jan 14, 2014 11:07:41 GMT -5
Daily sales totals for which day loony? I have no problem sharing them, but I don't think they're all that useful yet. We opened on September 26th, people were already thinking about Christmas. Now it's mid January which is going to be a slow month for me since kids just got a bunch of toys for Christmas and their parents are getting the credit card bills. Aaaa..............verage!!!for a month of nov, dec...
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milee
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Post by milee on Jan 14, 2014 11:21:43 GMT -5
Loony, what are you trying to see from the daily sales totals? Are you trying to see if sales are steady and approximately the same every day? Are you trying to see if there are busier days of the week? You could see those things from the actual data but it wouldn't be a big decision point in a business like Dark's.
Toy stores have different metrics than grocers do. For grocers, daily sales are a key figure since other than small fluctuations you can use daily sales to tell all sorts of things about a grocer. Not so much from a toy store where sales are irregular, nonrepeating and a single sale can skew the day's data.
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Deleted
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Post by Deleted on Jan 14, 2014 11:28:42 GMT -5
Loony, what are you trying to see from the daily sales totals? Are you trying to see if sales are steady and approximately the same every day? Are you trying to see if there are busier days of the week? You could see those things from the actual data but it wouldn't be a big decision point in a business like Dark's.
Toy stores have different metrics than grocers do. For grocers, daily sales are a key figure since other than small fluctuations you can use daily sales to tell all sorts of things about a grocer. Not so much from a toy store where sales are irregular, nonrepeating and a single sale can skew the day's data. I think she is trying to compare her store to Dark's.
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tloonya
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Post by tloonya on Jan 14, 2014 11:28:46 GMT -5
It will be interesting to see the daily sales figures, but for a business like this I'm not sure they are terribly meaningful. Not only is this a small business, which means that individual sales can spike the results, but it's so cyclical/seasonal that daily sales wouldn't show a helpful pattern. If you had enough history - more than a year at least - you might be able to use the daily sales figures to target days to close or offer special deals to increase volume. But otherwise, I think the monthly sales figures are about as granular as you'd need for a while. I will disagree, because in my business which is a small business sales are pretty evenful if I divide it by 30. Beginning of the month is not as middle and not as end. But dividing all money by 30 - it is becoming pretty even for each month of the year. I do understand that food I am selling is different from toys sales. However getting daily amount is giving me (maybe I am the only one) pretty good picture of how is business doing in general. Thanks
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tloonya
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Post by tloonya on Jan 14, 2014 11:30:36 GMT -5
If you want the average for a month take the monthly sales totals I already gave and divide them by the number of days in the month. We're open 7 days a week. Lazy. I had never seen any figures you gave, which post?
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tloonya
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Post by tloonya on Jan 14, 2014 11:34:00 GMT -5
Loony, what are you trying to see from the daily sales totals? Are you trying to see if sales are steady and approximately the same every day? Are you trying to see if there are busier days of the week? You could see those things from the actual data but it wouldn't be a big decision point in a business like Dark's.
Toy stores have different metrics than grocers do. For grocers, daily sales are a key figure since other than small fluctuations you can use daily sales to tell all sorts of things about a grocer. Not so much from a toy store where sales are irregular, nonrepeating and a single sale can skew the day's data. I think she is trying to compare her store to Dark's. Yes and no. I am trying to see why is everyone saying that Dark's business is successful after only few month. Also I want to say that I wish Dark's business was really going as projected and be all Dark wants it to be. I am just digging into for info for me the way only me can understand. Sorry.
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Post by Deleted on Jan 14, 2014 11:36:28 GMT -5
I think she is trying to compare her store to Dark's. Yes and no. I am trying to see why is everyone saying that Dark's business is successful after only few month. Also I want to say that I wish Dark's business was really going as projected and be all Dark wants it to be. I am just digging into for info for me the way only me can understand. Sorry. people like to bust your chops because you talk funny
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tloonya
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Post by tloonya on Jan 14, 2014 11:36:28 GMT -5
I had never seen any figures you gave, which post? They're in a different thread. When I get to work I'll post the daily sales and you guys can do whatever with them. But you said you know by heart...see, this is why I am kind of...confused. I am asking for something from you that should take you 1 sec to come up with!
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milee
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Post by milee on Jan 14, 2014 11:43:25 GMT -5
It will take him more than one second because again it's a different type of business. Groceries fall into the homogenous category. The majority of your sales are within a reasonably tight, small value range and you have many of those sales that make up a day's worth of transactions.
Toy stores like Dark's do not have a homogenous grouping of sales amounts. They can go two days without a single sale and then have a soccer mom walk in on day three and buy a swingset, electric scooter and assorted swag for $1200. That's OK, somewhat normal and just how that type of business works.
So a grocery owner should know that the average days' sales are X except for Monday which is X + $200 and the last three days before new welfare checks arrive, which is X - $350, for example. A toy store owner wouldn't necessarily have that regular a spread and wouldn't get too alarmed with $0 days or too excited about days where he makes a sale that's worth 4 times the average daily sale.
So Dark can give you those figures, they're just not likely to have much meaning because of the nature of toy sales.
And don't count me in the group that's calling this store a success. I wish Dark success, but think the sales YTD are very worrisome. Too early to tell if it's just first year growing pains and he can really grow awareness and sales over the next year or if that's it, but if the sales listed are it, he's in deep doo doo.
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tloonya
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Post by tloonya on Jan 14, 2014 11:43:53 GMT -5
Yes and no. I am trying to see why is everyone saying that Dark's business is successful after only few month. Also I want to say that I wish Dark's business was really going as projected and be all Dark wants it to be. I am just digging into for info for me the way only me can understand. Sorry. people like to bust your chops because you talk funny I don't mind to fulfill otherwise non-existent clown position here, however when I am asking for one freaking number in 10 posts it becoming aggravating. Thanks for your avatar change, Archie...that one was...aggravating.
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Deleted
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Post by Deleted on Jan 14, 2014 11:45:54 GMT -5
people like to bust your chops because you talk funny I don't mind to fulfill otherwise non-existent clown position here, however when I am asking for one freaking number in 10 posts it becoming aggravating. Thanks for your avatar change, Archie...that one was...aggravating. Serenity now.
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Wisconsin Beth
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Post by Wisconsin Beth on Jan 14, 2014 11:49:39 GMT -5
Milee, You're either underestimating or over estimating the cost of a swingset. A wooden one is going to start at $3K, I'd guess and a metal one runs a couple of hundred.
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tloonya
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Post by tloonya on Jan 14, 2014 11:55:19 GMT -5
It will take him more than one second because again it's a different type of business. Groceries fall into the homogenous category. The majority of your sales are within a reasonably tight, small value range and you have many of those sales that make up a day's worth of transactions.
Toy stores like Dark's do not have a homogenous grouping of sales amounts. They can go two days without a single sale and then have a soccer mom walk in on day three and buy a swingset, electric scooter and assorted swag for $1200. That's OK, somewhat normal and just how that type of business works.
So a grocery owner should know that the average days' sales are X except for Monday which is X + $200 and the last three days before new welfare checks arrive, which is X - $350, for example. A toy store owner wouldn't necessarily have that regular a spread and wouldn't get too alarmed with $0 days or too excited about days where he makes a sale that's worth 4 times the average daily sale.
So Dark can give you those figures, they're just not likely to have much meaning because of the nature of toy sales.
And don't count me in the group that's calling this store a success. I wish Dark success, but think the sales YTD are very worrisome. Too early to tell if it's just first year growing pains and he can really grow awareness and sales over the next year or if that's it, but if the sales listed are it, he's in deep doo doo. I am actually completely satisfied and greatful for this explanation. I totally get it and I remember now how I always drive by piano store and fur coat store and wonder...
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milee
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Post by milee on Jan 14, 2014 11:59:26 GMT -5
Milee, You're either underestimating or over estimating the cost of a swingset. A wooden one is going to start at $3K, I'd guess and a metal one runs a couple of hundred. Sorry, my ignorance is due to being both old and a hick. We built our swingset about 10 years ago and did most of it ourselves. See? Old and hick.
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tloonya
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Post by tloonya on Jan 14, 2014 12:00:48 GMT -5
Milee, You're either underestimating or over estimating the cost of a swingset. A wooden one is going to start at $3K, I'd guess and a metal one runs a couple of hundred. Beth, are you serious? Does it really matter how much is exact swing price? I can find you a metal one that will cost 10 times wooden one...but what is specially irritating...does it really matter Same is my spelling...if you answering it means you understood. Just an example how anal people can irritate heck out of anyone.
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Wisconsin Beth
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Post by Wisconsin Beth on Jan 14, 2014 12:02:48 GMT -5
I've never been considered anal before.
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justme
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Post by justme on Jan 14, 2014 12:10:44 GMT -5
I think she is trying to compare her store to Dark's. Yes and no. I am trying to see why is everyone saying that Dark's business is successful after only few month. Also I want to say that I wish Dark's business was really going as projected and be all Dark wants it to be. I am just digging into for info for me the way only me can understand. Sorry. It's successful so far because he has been showing a profit every month. And we know that because he has provided revenue, COGS, and his overhead costs (including wages of the employees). With that information one can easily calculate that he has had a profit each month. Also, the amount of money in his business account and him not floating checks is another indication of so far being successful.
Revenues/total sales will tell you diddly squat about whether a business is successful or not. You could have $5000 in sales every day, but if it costs you $6000 in COGS and overhead you're losing money every day.
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tloonya
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Post by tloonya on Jan 14, 2014 12:13:16 GMT -5
I've never been considered anal before. You normally don't consider when you are...
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justme
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Post by justme on Jan 14, 2014 12:17:28 GMT -5
I said successful so far. I added a qualifier! Hope that decreases the baggage.
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