Questions about cash flow ...

Hello ...

I have questions ... what means of cash flow and if someone told me cash flow is $80,000 ... is it good or bad for the business that asking price is $130,000 in orlando?

Thanks in advance ... :D

I know my questions are hard to answer ... however any kind of hint or info related to my questions will be very helpful to me ... expecially answers from someone who is running business in orlando ...

Thanks

I am not a native speacker in english ... means you may see many errors in my writting ... please be generous for that ... [msnembarrased]

Mmmmm, something sounds a but dodgy with that - cash flow is usually a real time measure of trading, i.e. it tells you how much cash is in the bank to support the forecasted trading (in other words it lets you know if you need to speak to your bank manager or not:))

Normally a business would be said to have an annual profit of $80,000, and coming from a business that costs $130,000 seems to be a bit on the large side.

Alternatively, I suspect this could be some form of lease or franchise where you pay $130,000 to a company who then give you the rights (and quite often lease back to you the property) to run a business, where at the end of the year you would see $80,000 positive cash flow - without more information its is very difficlut to advise, can you get and post more details, then hopefully we can give you a better answer?

I own a business in Orlando and spent months and months looking for one and the words cash flow never appeared on any broker listing. Gross sales and owner benefit are the things given, Owner benefit is the profit drawn by the owner. What worries me is you are asking us. Ask your accountant. Please do not buy a business in Orlando without getting an an opinion from an unbiassed accountant first.

Thanks all of you first ...

In these days, I am looking for the business in orlando area by using http://bizbuysell.com/buy/
at there, information format of business is like this

Sample
************
Asking: $69,000
Gross: $100,000
Cash Flow: $60,000
FF&E: $25,000 (included in the asking price)
Inventory: $800 (included in the asking price)
************
NO information about owner benefit ... :( ...


then what about this ...

How much can I expect pure owner benefit from the business about $130,000 in orlando under the normal situation ... I know this kind of question could be useless because of so many cases by cases ... however any kind of your opinion about this will be very helpful to me.

Thanks again

I think you will find that the cash flow in this case is the owner benefit. I have been lookin for a business in florida for the last year and have seen owner benefit listed as cash flow.
But the good advise is if you are interested sign the confidential docs and give the information to an accountant

Jimbo

An owner benefit of $80,000 for an asking price of $130,000 is good. My business cost more than that and the owner benefit is loads less.

<blockquote id="quote" class="ffs">quote:Originally posted by esprit
An owner benefit of $80,000 for an asking price of $130,000 is good. My business cost more than that and the owner benefit is loads less.
[/quote]
Thats an outstanding return, where do I sign?:D