Recently, my friend told me that she was asked by her friend to invest in a Yoga business in Vancouver. She was interested in it but there were many reasons that keep her away from doing this business. Here I will talk about some ideas that we have come up.

The business is a no-go for her because the cost exceeds the benefit. The cost includes $8000 in taking over the business which I have no idea about whether this cost would include the purchase of existing assets or liabilities of the company, $1400 of monthly rent that can be regarded as an operation cost. Although the cost of investment is affordable, there exists a risk that this business is not performing well with their finance and creates a loss for you every month. This business is not a well-established business that already had plenty of customers. Moreover, my friend may go back to HK and wouldn’t be free to manage this business but to leave it to her only partner; thus, there exists a chance that her partner would make up the financial statement to her and “eat” her money. Most importantly, my friend does not know anything about yoga nor doing a business. If the Yoga class that they provided does not go well, there would exist a certain difficulty for them to diagnosis the problems.

Doing a business could be very interesting if you are fine to put your money and most of your time into it. There isn’t any working holiday for you in doing your own business because you want to spend your time in maximizing the value of this business, which also determines how much money you will get from this business. You will soon develop an obligation from this business that you are committed to. This is the fun part that I perceive of doing a business.