Since it is designed with the best information you have available at the outset, the variances from the budget figures may give you valuable information in preparing the next year's game plan. Before you start a new business, be sure the community can support such a business. Some areas are not large enough to warrant certain specialty shops. A bicycle shop, for example, may take a population base of 50,000 people to make it profitable. A grocery store, on the other hand, can be profitable in a town of only a few thousand.
Credit is necessary to attract some business, and it is profitable if properly managed.
For example, a construction company finds it impractical to issue credit cards to all its employees and inconvenient to use a check for every purchase. In exchange for the courtesy of an open account, such a customer should be willing to pay immediately upon receipt of a billing statement. Business deals and special franchises which sound too good to be true usually are. We will gladly assist you in reviewing any new purchase or business proposal. In the absence of this courtship, you should have your attorney draft a well-written partnership agreement.