business

Discussion in 'Pain Medicine' started by PinchandBurn, Jun 17, 2012.

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  1. PinchandBurn

    PinchandBurn 7+ Year Member

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    What do you think of a business that Grosses $475K a year. But the costs (overhead),etc is $250k
     
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  3. 101N

    101N 5+ Year Member

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    That would depend upon the sector. Are we talking a medical practice?
     
  4. PinchandBurn

    PinchandBurn 7+ Year Member

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    no


    but what if it were. General principles are similar right?
     
  5. 101N

    101N 5+ Year Member

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    I think you need to compare apples to apples. If I'm looking for a job as a physician in the US I'm going to be thinking MGMA, comparing income to my peers.

    Margins differ from sector to sector. If this were a car wash or coffee shop then this is a marvelous margin particularly if all of the management salaries are included in the overhead.
     
  6. PinchandBurn

    PinchandBurn 7+ Year Member

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    Yes, it's something like you are alluding too.
    But it's a franchise. So there's a 'royalty' something b/w 5-7%
     
  7. powermd

    powermd Lifetime Donor 10+ Year Member

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    Sounds like a Subway restaurant, am I right?
     
  8. PinchandBurn

    PinchandBurn 7+ Year Member

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    lol.....perhaps;)
     
  9. powermd

    powermd Lifetime Donor 10+ Year Member

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    A friend of mine who does anesthesia around NY has been talking about starting a biz of some sort for years.. a chain of Subways came up as an idea. Other ideas, a string of ATMs and laundrymats. :rolleyes:
     
  10. PinchandBurn

    PinchandBurn 7+ Year Member

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    question is who is going to 'run the store'. I'm sure you and your anesthesia buddies wont be tehre all the time. The issue then becomes 'trusting' someone else, and they often time STEAL, especially if they know two docs that are preoccupied own the place....


    These can be lucrative, but usually a physical presence needs to be there.
     
  11. lonelobo

    lonelobo PAIN DOC 10+ Year Member

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    Numbers sound low for a subway
     
  12. Tenesma

    Tenesma Senior Member 10+ Year Member

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    any business that generates more income than expenses is a good business - especially when the upfront capital to get that business is low and re-captured quickly...
     
  13. powermd

    powermd Lifetime Donor 10+ Year Member

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    Really? These sounded high relative to what my friend was quoting. Basically it only made sense if you were going to make it a family business and put everyone to work in 6 different stores and everyone was willing to work for cheap.
     
  14. PinchandBurn

    PinchandBurn 7+ Year Member

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    purchase price is $650k.....
     
  15. specepic

    specepic 7+ Year Member

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    Is that a single store?
     
  16. Tenesma

    Tenesma Senior Member 10+ Year Member

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    650k to get 225k/yr in passive income --- that's pretty darn good if you ask me... show me where else 650k can generate that kind of return?
     
  17. PinchandBurn

    PinchandBurn 7+ Year Member

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    yup...keep in mind that 250K number is before taxes. Also, keep in mind that currently it's a 'corporate' store.

    For a frachisee, one has gotta add on a royalty fee of 5-7% weekly and then also since I dont have $650k cash (obviously I have to pay interest on the loan)....
     
  18. Tenesma

    Tenesma Senior Member 10+ Year Member

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    If you take out a loan for 500k at 8%..... and you get a return of 100k/yr - you would be clearing 60k/yr on a 150k cash down-payment... that is great return --- as long as this is a turn key operationg and doesn't require constant supervision/management....
     
  19. specepic

    specepic 7+ Year Member

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    what is included with expenses, i.e. is that profit or only the return if you are the onsite manager/chief sandwich artist
     
  20. PMR 4 MSK

    PMR 4 MSK Large Member SDN Advisor 5+ Year Member

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    I'd call that $225K/year profit. But it is never that easy.

    If you can do it on 10 hours per week, that's $450/hour

    If it's 100 hours per, it's $45.

    9/10 people would love to have that opportunity. The other 1/10 already makes more than that.
     
  21. Jcm800

    Jcm800 7+ Year Member

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    i looked at purchasing a subway, those numbers are amazing!
     
  22. lonelobo

    lonelobo PAIN DOC 10+ Year Member

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    Looking into "Massage Envy" franchise myself

    75% of pts ask about massage, and I can use a good massage myself
     
  23. PMR 4 MSK

    PMR 4 MSK Large Member SDN Advisor 5+ Year Member

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    I had a massage therapist in my old pain practice. Cash only. No one wanted it unless I could bill it to their insurance. If I could have done that, I could have hired 25 massage therapists.
     
  24. SSdoc33

    SSdoc33 10+ Year Member

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    Watch 'restaurant impossible' then think about buying a restaurant. Granted, this is a franchise and I'm assuming you are not a complete idiot........ But still
     
  25. Tenesma

    Tenesma Senior Member 10+ Year Member

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    massage can be a money-maker... just as long as you don't expect your current patient population to be driving that business..
     
  26. lonelobo

    lonelobo PAIN DOC 10+ Year Member

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    No have over 150K drawing area with no spas, or like businesses ...will let you know in year if it was good idea
     

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