Insulated Drapery:

Want to make your room look beautiful and stylish, go for drapery. Drapes give your home, that much desired comfortable and rich look. This is not all. Drapes also serve the purpose of shielding against heat loss and keeping your home warm on the inside.

The Category of insulated drapes would be an ideal choice to decorate your home as well as to prevent the cool chill air entering the room.

How is it possible? Once you adorn your windows with Insulated drapery, you can rest assured and have a sound sleep. The process of house warming starts as soon as you embellish your windows with this drapery. When the cool air enters the window, it is obstructed by the insulated curtains and fall to the floor. This is followed by the warm air entering from above, cooling down and falling in to the floor. This process allows the uniform mixing of air in the room as the cool air is obstructed, thereby reducing heat loss. In the absence of the curtains, the heat loss would be increased, as the cool air would swiftly move in. The amount of heat loss can differ wim the type of drape, its thickness and the gap existing between the drapes and the window wall.

TOP 10 CURTAIN TIPS!

 1.     Always use a steel tape when measuring, as fabric tapes can stretch. It may seem obvious, but if you are replacing existing curtains that are the right size then simply measure these.

2.     Experience has shown that it’s much better to install rails before measuring for curtains as it can be difficult to get rails exactly where you want them, especially when drilling into a concrete lintel.  Also install corded rails where possible to avoid regular handling, and possibly soiling your curtains.

3.     If curtains of different lengths are for the same room and it is important that they pattern match let us know whether to match from the top or the bottom.

4.     If you have a valance, you may be able to use slightly less fullness in the curtains (but we would not recommend less fullness in a valance than your curtains).

5.     When choosing your fabric don’t forget that curtains will look darker in bulk. Watch out for horizontal stripes as they will accentuate a long narrow room.

6.     Bear in mind that curtains with a buckram heading (pinch pleat, goblet pleat) occupy rather more space when drawn back than pencil pleating.

7.     A 1½ width pair means just that – each curtain is made up of one full width and half a width of fabric joined together.  If you have half widths always make sure you hang them so that the ½ widths are on the outside.

8.     Whilst most curtains are washable this does not mean they are shrink resistant unless they are an easy-care fabric.  For most fabrics we recommend loose linings if you intend to wash them.

9.    When gathering curtains don’t forget to tie the cords at one end securely before gathering and always make sure the excess cord will be on the outer edge of the curtains.  Don’t cut off the excess if you are likely to want to flatten the curtains later to clean or store away. We provide cord tidies (F.O.C.) to stop them tangling.

10.   It is not always necessary to wash or have your curtains dry cleaned.  Vacuuming them should suffice in most cases. 

Custom curtains for your home. Based in the UK, Econermine Fine Furnishings has been producing quality made to measure curtains for over 30 years. We specialise in custom-made window treatments and offer a wide range of inspiring modern and classic designs. Use our made to measure service to order curtains, pelmets, roman blinds, and much more – made especially for you. Shipping is available throughout the UK and Europe.

For more information please visit: http://www.GreatCurtains.co.uk

More than ever before, homes with shutters are recognized as substantially upgraded and thus shutters are the number one window covering all other products. The ‘shutter’ category is the number one window covering product in recent years. Surveys have shown that 7 out of 10 consumers prefer shutters over any other type of window covering, however only 2 out of 10 can afford them due to the high price.

Shutters offers many advantages over blinds and curtains. Shutters offer superior insulation and control of light entering a room, varying from opening the shutters all the way for a full view to fully closed for an almost blackout control.

Shutters in general are lower maintenance than most other types of window covering. Older style shutters with staples require replacement every few years and special cleaning and upkeep. Synthetic and vinyl materials can withstand wet environments such as outdoor use and saunas. In recent years a laminate DuraShutter material with snap-in non staple construction provides durability and low cost alternative advantages.

Shutters can provide a better insulation value than any other type of window covering. Since 10 times more heat can pass through a glass window than through wall adding a shutter to your window will lower your heating and air conditioning bills.

Shutters are commonly made from 3 different types of materials. Each type has it’s own strengths and weaknesses as well as environmental effects. Traditional shutter manufacturers use wood and then spray paint or stain them to just about any color you desire and they perform well under most conditions. Like any wood product they are subject to warping over time and the paint can peal and crack over time. Unfortunately, some woods are imported and the harvesting of some trees causes harm to the environment. In addition most shutters are painted using lacquer based primers and or finish paints that release VOCs into the atmosphere. VOC’s have been proven to increase green house gases.

Vinyl and other synthetic material shutters were developed as an alternative to wood shutters. For certain applications such as outdoors, high humidity areas like saunas or poolrooms vinyl and other synthetic material shutters are an excellent choice. The plastics used in these types of shutters can fade, change color or yellow over time with exposure to the sun. Unfortunately, vinyl and other synthetic material shutters are made with oil products and the drilling, transport, refining and storage of oil based products are a concern to many as their use increases our dependency on oil, and when painted, the use of VOC is also harmful to the environment.

Many shutter fabricators are now, as flooring companies do, are offering Eco friendly lower cost laminate alternatives to wood. Many American and foreign shutter fabricators now offer all three choices, Vinyl/Synthetic Material, Wood and Laminate materials. Laminate materials are designed to overcome the disadvantages of wood, vinyl and synthetic material shutters. Laminate DuraShutter material is a dense, solid engineered composite that is an Eco friendly recycled wood and paper product. Its density gives it a better insulation value than wood and the Eco friendly laminate coating material provides better resistance to fading or yellowing than vinyl/synthetic material. Laminate shutters can be made into an excellent product that is indistinguishable from wood shutters. Since laminate DuraShutter is primarily made from recycled materials and the finish from Eco friendly laminates, it has a significantly lower impact on the environment.

Shutters are often referred to as “the ultimate window covering” but costly until the introduction of shutters made of lower cost laminate DuraShutter materials that many shutter fabricators are now offering as a lower cost alternative. So once you’ve added indoor shutters, just stand back and admire them, both from within your home and from your curb. Drive by any home with interior shutters across the front and you’ll see why so many people swear by them.

By visiting the author’s web site at www.Durashutter.com you will find all kinds of useful window covering information.

Your bedroom does more than just serve the need for a place to sleep. It accommodates you at all times of day, providing space for reading, studying, watching TV, talking on the phone, eating, and using the computer. Because of this, the bed is no longer the primary piece of furniture in the bedroom. Bedroom desks, large nightstands, or a television might be a better focus for your bedroom interior design. If you watch a lot of television in your bedroom, you might want to consider a chair and ottoman for more comfortable viewing.

If you like to read in your bedroom, you should pay special attention to the lighting in your bedroom. Dim, moody lighting may be restful, but it will cause eye strain when reading. The lighting should be at a level where you do not accidentally shade it, and tall enough to shine light on the book or magazine. Bedroom interior design professionals suggest that when using lamps in the bedroom, the lower edge of the lamp shade should be around eye level when seated.

Remember to choose colors that you find restful when decorating your bedroom. Exciting colors such as red should be avoided unless you personally find them comforting. Strong colors have been said to promote insomnia. Designing your bedroom interior with a splash of a bright color will liven up a room, but it should not be allowed to dominate.

Layered curtains in the bedroom are and excellent interior design choice. This allows you to wake up to filtered light, open the curtains for full light, or black out the room for naps and sleeping in. Blackout lined draperies will protect you from morning sun, whereas sheers or thin blinds will filter light for a gentle glow in the morning. Bedroom interior design has many options, and can be tailored to your personal preferences. The bedroom should be your sanctuary, and it is important to feel comforted and restful when you are there.

This article is written as a general discussion on the subject of “Due Diligence”. It is for informational purposes and not intended to be a definitive guideline for your exact situation. You should consult the appropriate professionals with regard to your specific transaction or situation. Further, this article is in no way advocating, suggesting or implying that anyone engages in any type fraudulent activities whatsoever. These are simply the things a buyer should be aware of when doing due diligence in buyer a business.

You spent months finding the right business. The seller says that you cannot go by what the tax return shows but the business is making a lot of money, and he can prove it. Your inspection of the profit and loss statement shows that sales have been increasing slightly in the last few years. Most important, and the best news of all is; the price is right! Does it sound too good to be true? I am sorry to tell you this, it probably is.

I think it was Benjamin Franklin who said, “A fool and his money are soon parted.” Mr. Franklin must have known a lot of business buyers. When buying appliances that break in a month, it costs you a few dollars. When you go to a swap meet and are cheated because the solid gold watch is really gold plated, it costs you a few hundred bucks. When a used car salesman cheats you, by selling you a lemon, where the speedometer has been turned back 100,000 miles, it costs you a few thousand dollars. Getting cheated buying a business can cost you many thousands to hundreds of thousands of dollars. The only investment or purchase that I know of where you can be cheated out of more money is in the area of real estate. Real Estate fraud can runs into the hundreds of millions of dollars and does. You would be shocked at all the people between 1875 and 1950 who saw ads for prime real estate in Florida and bought swamp land. What about prime Louisiana beach front with Alligators living outside your front door? I have written a series of articles on fraud and it keeps getting bigger and bigger.

I hope that the point is made. Never buy a business on someone’s word. Actually, you should never buy anything on someone’s word. Confirm everything, believe nothing and understand that you are still going to find out things, after the close of escrow, which is going to surprise you. A similar example is one known by every employer. A staff worked for a company for 4 months and complained to the personal officer that the job was just too difficult. He kept complaining that he needed more training and lower quotas. You feel sorry for him. You talk to him and talk to him about it. You listen and believe all the excuses he gives you for poor production. Finally he quit, blaming you for something that you did, this just before you were going to give up and fire him. Then you started to take over the work of finishing his incomplete projects. You are shocked, as you always re, at what he did wrong and what he had covered up, that he was not doing. This is what happens when you buy a business. You find out all the actions that the seller, not his staff, had stopped doing, from the day that he decided to sell the company.

Many businesses are doing well. Sometimes the owners have personal things going on in their home life. Sometimes they have medical problems. Many times the business is not doing well and the seller is frustrated. It is very common for a seller to work hard to build his business, but because of many reasons, it doesn’t produce what the seller wants. He gets frustrated and one day he gives up. That is usually the day he calls that business broker he met and asks the big question. How long will it take you to get me out of this place? In his mind, he is gone. He just counts the days until he physically walks out.

Have I scared you? Good. There is a plus side. It is worth all the grief that you go through to buy a business when you get in to the drivers seat, put all the marketing actions into place and start driving your own business.

In 2000 I had a client buy a car wash soap manufacturing business for $2 Million dollars. The seller swore it was making $500,000 profit per year. Due Diligence showed it was only making $300,000. When presented with the auditors report, the seller claimed the audit was wrong. The buyer bought the company, knowing he was overpaying for the business. Why? He had done his research on the production department and sales department. He went out on the deliveries with the drivers, and met customers. He determined that he could double the sales and profit within one year. After he bought the business he found two things to be true. The profit was $300,000, as my audit found. He could double the sales and profit within 12 months, and did. The seller tried to screw the buyer, but in the end, justice was served. The seller screwed himself more than he screwed the buyer by not running his business correctly. If he had he could of sold it for a lot more than $2 Million dollars.

Ok, enough with the fun stories for now. Let’s get down to the details of what to look for when doing “Due Diligence.”

Due Diligence Defined:

The phrase is composed of two words. “Due” which the dictionary defines as “Proper or adequate” and Diligence, which is defined as “Degree of care or caution expected of a person. Especially as a party to an agreement.” Caution is the watchword in this definition.

Financial Statements – What to look for:

Add Backs:

If you bought the business through a business broker you should have received the business financial statement with a separate worksheet showing adjustments to those statements. These adjustments show the owner’s benefits received from the business besides the profit and salary he receives. These can also be defined as personal expenses that need to be added back to the profit. Depreciation, incomes taxes, interest expense are add backs that are not personal. Personal includes such things as family auto expenses, owner life insurance, owner health insurance, business entertainment that was not really spent on clients, business trips not really for business, home office expenses, family cellular phones and much much more.

Make the seller show you the details on some or all of these expenses to verify that they are really personal and not actually business expenses that shouldn’t be added back to profit. Spend time asking detailed questions with the general ledger in front of you. Go through individual charges and what they mean, until you fully understand what is being added back and why.

Inventory:

Inventory of resale merchandise must be checked for two reasons. One is you have to pay for it. Be careful, you do not want to buy merchandise that is old, worthless and not saleable anymore. Only pay for current marketable product. The price you are supposed to pay for the inventory is the seller’s cost. The price for old slow inventory is negotiable. Always spot check the price and count the merchandise listed on the inventory list. Do people put down that there is three of an item when there are only two? Of course, especially when they think no one is going to be checking them out. Comparing prices from purchase invoices is how you check prices. You cannot check every item against the actual cost but you can do 5% of the items. Pick at random, not by any suggestion made by the seller or others. If you do not understand how marketable the inventory is that you are buying, hire an expert, from that industry. Your broker should be able to help you in finding someone. Do not be cheap, and think you do not need to spend the money on an expert adviser. I will take a lunch bet that they will pay for them selves many times over.

The second reason for checking inventory is that if a seller doesn’t take inventory at least yearly and adjust his inventory value in his accounting records, accurately; the profit figure you are receiving will not be accurate. As a rule, the higher cost of goods sold, the lower the profit. Some business owners reduce the inventory value on the books, intentionally, to a lower value so as to make the business show a higher cost of goods sold, which then creates a smaller taxable profit. If they do this year after year, the profit may or may not be accurate for the current year. It might take a CPA to figure this one out for you, if you do not have a background in retail.

Equipment value:

Next thing to check on the financials is the real, current value of the equipment you are buying with the business. The balance sheet might, if it shows all the equipment the company owns, give you the cost of the equipment when it was purchased. If you are buying assets rather than cash flow, the equipment valuation becomes more important. No one wants to overpay for used equipment. Also check that the equipment works and is actually being used rather than sitting behind the building with other junk.

Cash Sales:

If all income is being reported, check sales volume activities that you have observed against the daily records during your “Due Diligence” to see if the volume corresponds to what was reported last year in the same month. If you see income of $500 per day but the seller shows sales of $1,000 per day, you need to find out why. Some smart buyers sit in the business all day, watch the sales and observe the activities of the staff. This works if the seller is not putting on a full fledge production fraud for you the buyer.

Fraud:

How does a seller defraud a buyer on current sales activity levels? Sellers who keep poor records or no records, many times, suggest the buyer doing a 15-day visual inspection. This helps but it is very dangerous to rely solely on physical inspections alone because the seller can still defraud the buyer. Here is the most famous of the stories I have heard over the years.

Seller owns a dry cleaner. The buyer and seller have opened escrow and the deal is subject to a 15-day physical observation period. The seller doesn’t want the buyer to find out that business volume is very slow. The seller tells all his friends to bring their dry cleaning in to the shop for a two-week period, at no charge. They bring in the clothing, get it cleaned, pick it up and pay for it. Later the business owner meets the customers and reimburses all of them for the cost of their dry cleaning. The day after escrow closes all that business traffic stops. Think it never happens? The same is true of restaurants. Seller tells all his friends to bring all of their friends in for a free meal. Customers pay the bill and some time later or at home, the business owner reimburses all the customers for the cost of their meals.

Actual time sellers spend working:

Determine how many hours the seller really works. You are buying an income stream based on a known number of hours of work. Make sure the seller isn’t working 80 hours and telling you he is only working 40 hours, per week. I had an absentee fast food owner tell the buyers and me that he worked part time – 5 hours per week. Closer inspection showed he was working 25 hours per week. One auto repair seller, we’ll call him Bob, said he never was at the business, because he had a second full time job. Inspection found he was working 30 hours a week (4 plus hours every night, and 8 hours on Saturdays).

Find out what job functions the seller does:

Get a list of functions that the seller does. Is one of them bookkeeping? Sometimes the wife does the books part time and this is never said. Again you may find the owner does the bookkeeping, at home, every night, for an extra hour. In an auto repair shop, you may find the owner is doing auto body repair work, personally, on Saturdays, which is work that you, as a buyer, will never be able to duplicate. You need to be sure you know how to do every job function that the seller does or learn them. The time to find out what technical knowledge you need to have to take over the business is when you are doing your investigation, not the day after escrow closes.

Verification of things that are not on the Financial Statements:

It is a common occurrence that businesses do not record all of their income on their financial statements. Yes, this is true. Many people do not, in fact, report the truth on their tax returns. In fact, when I am talking about small retail or service businesses that deal with the public directly, I find it is over 90%. “Will the people with an honest set of books, please leave the auditorium. There are two golf carts outside waiting to chauffer you home. You do not need to hear this.”

The balance of this article will discuss how a buyer might do their “Due Diligence” for different types of businesses. These types of businesses include Restaurants, auto repair shops; real estate services contractors, non-real estate repair/ services, and retail stores.

Restaurants- Non-Franchise:

Restaurants compose over 25% of all businesses for sale. This is not because they all go broke, as the SBA reports. It is because 28% of all retail businesses are food service or food sales. It is the largest segment of the consumer market. Because it is a retail consumer business, it deals in 33% cash. Every independent-non-franchise food service business I have been into shows zero profit on the books. Some even go overboard and show a tax loss. It is because they do simple tax planning that does not require an MBA degree to figure out. If the business doesn’t show all of its cash, or any of its cash, the expenses will equal the reported income. This alone makes it attractive to many buyers. We will not discuss the moral issues of this attitude; it is what it is. What we have to discuss is how do you, the buyer, can prove that the business is making a profit? And, if it is, how much?

Restaurants come in two categories. 1. Fast food-counter sales. 2. Sit down. Fast food restaurants have computerized cash registers that record the sales into its computer, which has a memory. This memory has daily totals going back to the beginning of the computer’s history. Most owners close out their cash registers at the end of the day and print out the tape of each day’s activities. This does not automatically wipe out the information for the day. The computer does, I am told, have a delete button on it allowing the owner to wipe out the full memory in the computer, in the event of an audit. I have also been told, but do not believe, that an electrical blackout can wipe out the memory in the computer and that is why one seller said he couldn’t give me access to this information.

If we are talking about a sit down restaurant sales information, you can use the daily order ticket, which are then imputed into the computer. This gives 3 sources: tickets, computer and daily tape totals.

When this information is not available, for any reason, an experienced restaurant consultant can tell you the sales activities just by inspecting the restaurant and counting the number of customers eating at 4 key times in a day, and on several key days per week. Then the consultant can figures out what the average sales ticket amount is. With this information like magic the consultant knows the gross sales figure, for the year.

A double check procedure for restaurant consultants is to then look at the food purchases and its costs and can confirm that it matches the actual sales figures. One consultant that was hired to review a Johnny Rocket restaurant for $7,000 did the audit and put together a marketing program for the buyer. The marketing program included delivery and catering. Both of which do not normally show up on the computerized cash register.

Restaurants – Franchise:

You would imagine that franchise restaurants records would be very accurate because the franchise company gets a percentage of the gross income. The bigger ones connect up to the individual franchise and know what is happening faster then the owner. As stated above, the only sales that can be made and not declared to the computer are catering or delivery orders, which could be done without ringing them up.

Some franchises do not hook up to the individual franchise computers and do not do audits regularly. This allows the franchise to report reduced income to the company and the IRS. In case either comes to audit, they press the delete button on the computer. If you as a buyer can get access to the computer you know the numbers are correct even if they are not complete. It is impossible for the staff or the owner to change the computer records. The information can only be deleted. Again catering and take out may not be on the computer. Theft from employees can only be in the form of 1. Employees that give free food to friends. 2. Employees not ringing up an order, which is difficult when businesses put up signs saying, “If you do not get a receipt, your order is free.”

Some sellers are so paranoid of the IRS, they are not willing to show anyone their private records or computer tapes for fear that the buyer could be an IRS agent. My personal opinion, and what I advice sellers to do, is to get their books legal and honest and hire themselves a top notch CPA, like Donald Trump, and use every legal trick in the book. Martha Stewart didn’t go to jail for inside trading. They got her on lying, even if she didn’t do any lying. There are legal ways to avoid taxes so that fraud is not necessary. If you cannot find a good accountant, I will recommend one.

If you ask someone “Are you a government employee or IRS agent?” and they lie to you; that might be considered entrapment and a good possible defense in court. But, I ask you. Is it worth the grief?

The normal action of sellers, in this situation, is to require that the buyer take the business based on the recorded records and guess as to how profitable the place really is. This is a very difficult situation for the brokers and buyers, since sellers do not price their business based on these reported numbers but base their price on the real numbers.

I hope this is of some help to you in doing due diligence on a restaurant you might be interested in buying.

Auto Repair Shops:

Auto repair shops are almost as bad as restaurants when it comes to under-declaring cash. The normal procedure for most, I have run across, is to declare only the checks and credit card charges. The cash they put into their pocket. The good thing, in doing audits is that almost every one of these owners keeps their work orders-invoices. These are kept in monthly manila folders and put into a drawer or file cabinet. They never tell you that they keep these records, but they do. They even tell me, as the broker, that all backup documents have been destroyed, but they are not. When I insist that they cannot sell their business without providing these invoices, they tell me of their existence. With the sales invoices an audit of income becomes simple. Since the sellers keep them in a manila folder by months, you only have to pick monthly folders at random and total the actual invoices. Then compare them to what the “State Board of Equalization” report says and calculate what percentage of the total was declared. If you do this for a few months, a pattern will develop. Some sellers have even run a calculator tape of the month’s activities and/or written it in a private ledger. You can check the actual invoice tapes against the private ledger records to confirm the private ledger information is correct.

Real Estate Services/Repairs Contractors:

Real estate service contractors include new construction general contractors and sub-contractors, contractors that come to your house to offer repairs on your house (plumbers, heating and air-conditioning contractors, gardeners, landscapers, termite companies, roofers, carpet cleaners, cabinet re-modelers, carpet/drapery stores, tile stores, pool service providers, pool installation contractors, landscapers, etc.) These contractors, if the owner does the work himself, do not keep their job tickets-invoices after they are paid for their services, in cash. If the company has service men, then the owner is usually the dispatcher or other administrative person. In this situation seller, most likely, will have kept all of his invoices, so as to be able to look up prior history records of their customers. They might not have recorded the income on their records but they will have the basic records. Theses records may in a total mess, but the records do exist. If they do not, then buy the business based on what the seller can prove to you, or what you can reasonably estimate based on what percentage of the business you think is cash. What they are only going to prove to you is the total of checks and credit card charges, which is what the seller has declared on the tax return.

Non Real Estate Repair/ Services:

Non real estate repair/service companies include such things as large and small appliance repairs, barbershops/hair salons, nail shops, massage parlors, health clubs, pet grooming, wedding photographers, and movie theaters. These businesses usually do not even write up a ticket so unless a central cash register is used for recording income there will be no record at all. Again this is like a restaurant with cash register tapes. If the work is done at the customer’s location, then you study the serviceman’s truck schedule. If you only have some work records, from some work done in the field, you can determine what the average repair dollar volume is and then if you calculate how many calls are made on an average day, you only have to multiply the two numbers.

If we are talking about hair salons, nail shops or barber shops we can gather information about how many chairs there are, how many chairs are rented on a weekly bases and what rent the owner is collecting. If the technician is not paying rent then they are on a commission split. If you know the rental income and the income split you are well on your way to determining the real profit of this kind of business. Remember to ignore the income of the owner since you as a hairdresser or non-hairdresser owner would not get the income of the old owner. The old owner will probably rent space from you so you only add another rented chair to the income.

Retail Stores:

A retail store is a store that carries an inventory of products that they resale. Sometimes they offer installation, which then might put them into the service company instead of a retail store. The main distinction is that they sell a product instead of a service. This includes everything from Home Depot, pet stores, clothing stores, gift shops, supermarkets, vitamin stores, and sign shops. Retail stores have cash registers and daily tapes of their sales. This is handled similarly to a restaurant and should be audited in the same manner. (See Restaurant Section Above) In addition to the cash register information, you also have purchase records, which can be studied to determine the cost of the merchandise as a percentage of the selling price. With this relationship-percentage of cost to sale price known you can calculate either the cost of goods sold or gross sales if you have either to start with. A few smart owners buy some merchandise for cash in order to prevent a tax auditor from catching them by using this same manner. If the seller does this, he will admit it to you, if you ask.

When All Else Fails With a Retail Business:

The only way to protect yourself is disclosure so that you have grounds to sue for fraud. Make the seller put the real sales numbers, cost of goods percentage and any other information you are given and can not document down on a piece of paper and then have the seller sign and date the paper. If after the close of escrow you find the seller lied to you, the document will give you grounds to sue for fraud or misrepresentation. The important thing is be able to show a judge in writing what the buyer told you and to be able to show that he did this in writing. If the seller told you but never did it in writing you cannot prove it. “If it isn’t written, it isn’t so”

Medical Professions and Non Medical Professionals:

Professionals are a form of service business; except they charge a higher hourly rate and they have to keep patient/client files. Most people pay their professionals by credit card or check, because these expenses are usually tax deductible as medical or financial advice. If the seller doesn’t declare all the income, ask what back up records there are. Clients always get receipts for services and payments. There are records, find them and you will have all the income.

When all else fails in Figuring Cash Income:

If you have followed all of the earlier advice on documenting cash income and they in truth do not have documentation, you are in big trouble. You may have reached the end of your rope. You now have two options left. 1. Walk away. 2. If you still want to buy this business I only have one last suggestion. It is not fool proof but it is a method. Cash appears to be approximately 30%-35% of total sales. You could make this assumption to come up with a real total. Add 50% to the sales showing on the books, this amount is from credit cards and check sales. This is not an exact science; it is only a close estimate. Cash sales could actually be anywhere between 25% or 35%. I never figured it that close.

Cash Expenses Verification:

When you think of unrecorded cash transactions we usually think of undeclared income. Undeclared income is the biggest category, but not the only one. The other is cash expense not deducted on the books. The biggest expense item in this category is cash payroll.

Unrecorded Cash Payroll:

In an attempt to reduce the payroll expense, business owners will pay some of their staff’s payroll in cash. Why would they do this? Workman’s Compensation Insurance, FICA Taxes-Employer and Employee portion – Federal and State Income Taxes. Any accountant would scream at his client “You are missing out on a legal tax deduction.” Let me explain why someone would forego the tax write off by paying cash expenses.

When you pay an employee $100.00 per day, on the books, the employee gets about $70.00 net on his check. If you give him $80.00 in cash, he is happy. He doesn’t have to worry about going into a higher tax bracket.

The employer has to pay approx 10% to cover the employers FICA and other Federal employment taxes. You, as employer also have the workman’s compensation insurance premium. If we are talking auto repair mechanics compensation insurance alone costs 15%. If we are talking new real estate construction workers we can be talking a cost rate between 25% up to 120%. A roofer’s compensation premium is greater than his gross salary. Lets look what payroll taxes cost for a normal worker. The auto mechanic insurance rate of 25% is added to the 10% Federal costs plus the wages give us an expense that equals 135% of the wages. This comes out with the employer paying $135.00 and the employee receiving $70.00. There is a loss of $65.00 per day per employee. Some employers would rather save the $65.00 and not get the income tax deduction for the expense. Also with all the unrecorded cash the business shows, it isn’t important to have a loss on the books, since there is no need for more deductions to lower taxes. The business is already not paying any taxes.

Because there is a danger that an employee might be injured and file a claim under workman’s compensation insurance, it is common among small businesses to show part of the wages on the books and the balance in cash. This means that an employee earning $40,000 per year might have $18,000 recorded on a W-2 form, creating a very low federal tax rate or no tax due at all. Since the employee is being paid part of his wages on the books if he is injured on the job he is fully insured for accidents with State Workman’s Compensation Fund, State Disability Funds, State unemployment insurance and all Social Security benefits. This is a win-win for employer and employee, even if not for the government. As a buyer you must figure all this out, and adjust the expenses accordingly.

Unrecorded Operating Expenses:

Because owners are collecting so much cash, they need a place to spend it. If you make a major purchase, you cannot just walk in and pay cash for a car. The IRS will be notified of this cash transaction. Owners with a lot of cash will pay for all repairs, gardeners and everything for the home that costs less than $10,000, in cash. Why $10,000? That is the recording cut off that a vendor or bank is required to report when receiving funds in cash. If a business owner still has too much cash, sellers will start paying for business expenses. They start with the expenses where a service man gives a discount for cash. I found two restaurants that were paying for the hood cleaning service in cash, partly because they got a discount for paying in cash. By asking the correct questions, you can discover what is being paid in cash.

Unrecorded Labor:

Because we are talking small businesses, the wife comes in to the business full or part time. One of the children may come in to work part time. You must be aware of these employees who may or may not be paid. This is another form of cash payroll. If you have to replace these people with paid employees, these expenses need to be calculated in to the adjusted profit and loss calculation. .

Sometimes the family member is being paid some wages but not full market value. The adjustment is still needed but in this case only by the difference between actual payroll and the fair market payroll amount.

Conclusion:

It is a hard life when you own your own business; you work long hours. Many people feel that is better than the alternative, which is to work for someone else, pay high taxes, never know if you will be laid off and after years of hard work, never have anything to show for it all.

If you are going to buy a business with your hard earned money, you want to make sure you get what you paid for. Many people believe it is all right to cheat the taxman but otherwise are very honest citizens. Others feel it is all right to cheap any poor sucker that comes along. Don’t be a sucker, do your due diligence and get what you paid for.

Then build your new business into something you can be proud of and enjoy. While building your new business make a point to study everything you can about Tax planning, tax avoidance and reducing taxes legally. I started in College learning about the tax codes, and there are so many ways to save taxes legally, you would never believe it. You will sleep better at night, I promise you. Then 10-20 years from now when you want to sell your business, you can ask top dollar and get it. This because a buyer can do a simple due diligence and know that your business is doing exactly what your books say you are doing.

DO YOUR DUE DILIGENCE and buying your own business can be a pleasant and rewarding experience!

The good news for those in the market for new window shades, blinds or curtains is that there is a plethora of choices these days. You can fulfill just about any decorating desire you have. The bad news is there is a plethora of choices, enough to give you a headache and send you running for an over-priced decorator.

The wrong shades or blinds can make a room look terrible, or at best terribly average. The right ones will compliment your décor and really make a room look beautiful. There are other considerations though, there’s price, energy efficiency, opacity (see-though), even durability. It is my belief that once armed with a little information you can skip the costly decorator and choose the right window blinds or shades that will work within your budget as well as compliment your room or home.

First things first, here are the major types of window blinds: mini blinds, vertical blinds, panel track blinds (also called sliding window panels), shutters (also called plantation shutters), wood blinds and faux wood blinds. And, here are the major types of window shades: cellular or honeycomb shades, woven wood or bamboo shades, roman shades, roller shades, solar shades and pleated shades. Basically anything with a slat or louver (shutters) is considered a blind, whereas, window shades have a continuous length of fabric or other material and can be rolled up. Lastly there are drapes, also called drapery panels or curtains, no further explanation is required.

On the lower end of the price spectrum there are mini blinds and vertical blinds. These are the ubiquitous choice for millions of homes across the world. They work well, look decent and are relatively affordable, especially if you buy vinyl. For more durability consider aluminum mini blinds. If you are interested in vertical blinds and want more insulation, consider cellular vertical blinds.

Continuing on the point about insulation, cellular shades, also called honeycomb shades are designed to act as an insulator for windows. Their honeycomb fabric structure creates air pockets like many other types of insulation. Cellular shades come with single, double or triple cells, depending on how much insulation you want. The price obviously increases with more cells but it is worth looking into because the long-term cost savings are significant.

Pleated shades look almost identical to cellular shades but simply lack the honeycomb structure and therefore most of the insulating properties. They are therefore less expensive then cellular.

Wood blinds are similar to mini blinds with three main differences: they generally have larger slat sizes and are made from wood, usually basswood, as opposed to aluminum or vinyl and, they are more generally more expensive then regular mini blinds

Faux wood blinds are made from either PVC plastic or are a wood composite. They look almost identical to regular wood blinds but are less expensive and will not warp, crack or fade an important detail for hot and humid areas like kitchens and bathrooms.

Plantation shutters come in both wood and faux wood and have louvers, as opposed to smaller slats. These are the classic shutters you see in the old homes of the south, thus the name, plantation. They tend to be on the high-end of the price spectrum but could very well be one of the nicest types of window treatments. They can actually add more value to your home.

Woven wood shades and bamboo shades are a type of roller shade generally made from natural materials like bamboo, grasses, wood or weaves. Roman shades are similar to woven wood shades but come in fabrics like denim or silk and can either roll-up or fold-up via pleats. Both options are in the mid-price range depending on materials and options.

Roller shades are usually fabric and come in different levels of opacity from sheer to blackout. They are simple to use and generally affordable. Solar shades, also known as solar screens are kind of like window tinting for home windows, except that they roll-up. They’re great for windows with views. They filter light in greater or lesser degrees while still allowing see-through. They block harmful UV rays as well as heat gain.

Sheer shades are kind of a hybrid between a shade and a blind. They come in horizontal and vertical configurations. They can roll-up like a shade of you can close the blind portion just like you would on a mini blind or vertical blind. They feature two sheer fabric facings over soft fabric vanes – imagine the functionality of a blind within a roller shade. Sheer shades offer a lot of versatility and are in the mid-to-high price range of roller shades.

Lastly there are panel track blinds. They are much like vertical blinds only with larger panels or vanes which are usually fabric, woven wood or a solar screen material. They operate on a wheeled track system. The panels range in width from approximately 48” to 192” and in lengths to fit most windows and sliding doors. Panel track blinds can also act as a cool room divider. Panel tracks are more expensive the regular vertical blinds but certainly are more unique

You dress your windows with thermal curtains and along with a fine-looking window treatment you get an additional comfort of warmth in cool weather and cooling in hot summer days. And all this without additional money, spending on air conditioning!

Many people think that insulated curtains only keep the warmth in the room. If you also think so, you will be surprised. Thermal curtains have many others advantages: they provide a nice coolness in the room in hot weather, they can reduce noise that comes outside, and in addition, many of them have blackout feature, which is really great for a bedroom, a nursery or a home theater.

So what are actually thermal curtains? They are just regular curtains, but with one difference: they are made of fabric that has foam thermal backing. There are various fabrics for such curtains, but most common are cotton, polyester and a blend of them. This blend allows easy cleaning – curtains are machine washable. Thermal drapes come in so many colors and styles that you have a lot of choices and can easily find a thermal window dressing that suits the style and the color scheme of your interior. The additional advantage of them is its really affordable price.

Another type of insulated window treatment is curtains with insulated liner. Such liner provide the same functions as a thermal backing: reduces noise coming outside, keep warmth or coolness depending on weather and also blocks extra sunlight. You can shop for insulated curtains or make them by yourself if you like do-it-yourself projects and know how to sew.

Both thermal curtains and insulated drapes are heavy weight and require sturdy drapery hardware. Because of insulated backing or liner they are quite thick and don’t drape easily.

The insulated curtain liner can be also attached to existing drapes or can be hanged separately as additional window treatment. (That means you will need an additional curtain rod, or double curtain track for them.) There are some advantages of such separate liner: you can add it to drapes you already have, it perfectly protect drapes from dirt and dust coming from the window and you can easily remove and clean it. Since your curtains are separated from the liner, they can drape easily and in more attractive way then ones with an attached liner.

Thermal curtains and insulated drapes aren’t the only types of insulated window treatments. So, if you are still not sure about thermal curtains, consider window blinds, shades and shutters. There are many types of them that provide great insulation also.

Style is one of the first things to consider. This will be determined by the style of furniture you have chosen, the size and shape of your windows and even the architecture of your home.

The most common style of curtain is the pinch pleat drape. Fabric is gathered at the top of the drapery and “pinched” together creating a pleat. It is then attached to a curtain rod with a small metal clip at the back of the pleats. This treatment offers a full and luxurious look but can be expensive due to the amount of fabric needed.
A less expensive option is the tab top curtain. In this style a tab of fabric simply loops over the curtain rod allowing the drape to hang to the floor. This look offers a casual and relaxed feel to a room.

A contemporary version of the tab top drape would be the grommet top. Large grommets are placed at the top of fabric and a rod is woven through. A grommet is a hole in the fabric surrounded by a metal ring. Using this style in your room will create a clean and contemporary look.

If you have a beautiful view from your windows and/or privacy is not an issue, hanging stationary panels might be a good choice for you. Panels of fabric are gathered together on a short rod and hung on either side of the window or door. They are not functional but add color and softness to a room.

Rod pocket panels are a very inexpensive window treatment. A pocket of fabric is created at the top of the curtain and a rod is slipped through and attached to the wall. They are generally held open with a tieback of some sort. This can be a matching piece of fabric attached to rings on the wall or something more decorative.

Adding a “topper” to your curtains is something you will want to think about. This can be a simple ruffled valance that covers the rod to a more elaborate swag scarf look. Perhaps a tailored box cornice is more your style. Or maybe you want the beautiful wood or metal rod to show. This decision will be based on the type of curtain you have chosen and the overall design style of your living room.

All of these styles are available off the rack, reducing the cost. But if you are looking to add creativity and uniqueness to your room there is nothing more beautiful than selecting living room curtains that have been custom tailored for your home.

Budget is something we can’t ignore. As with all things, the amount you are able to spend will determine the type of curtain you choose.

A curtain purchased off the rack that is unlined can be very inexpensive. They are ready to hang and offer an immediate solution to any light or privacy issues you may have. However, they are often poorly made and will have to be replaced often. The color and pattern choices are limited.

Conversely, curtains custom made for your windows in a fabric chosen by you and properly lined can be very costly. There can be a long delay in getting these made, leaving you without window treatments for a while. But the end result will be curtains that give your room a unique look and the custom workmanship, including lining, will allow you to enjoy these curtains for a long time.

Lining your curtains is something to consider.

If you live in an area that is prone to lots of cold weather you may want to add a thermal lining to your curtains. While this will add to the cost, it can reduce the amount of energy used in your home as well as add life to the curtains by protecting them from the sun.

If you are fortunate to live in a sunny area, adding a cotton lining to your curtains will protect your fabric from the harsh rays of the sun. It can also help reduce the amount of sunlight entering the room, thereby protecting furniture and carpet from fading.

However, living in a sunny area can make it difficult to sleep during the day. The bright light can create problems if you work nights or have a baby in the house. Often the light coming into the room can make it difficult to watch television. For these reasons, you may want to consider a blackout lining. These opaque linings keep out any unwanted light and while they will add to the cost of your living room curtains, the extra sleep may be worth the extra cost!

Lastly, appearance is something to take into consideration. Lining adds body and weight to curtains, allowing them to hang properly. Your home will have a uniform look from the outside if all your curtains are lined.

Window treatments can be a costly addition to any home but taking time to make the right choices when selecting your living room curtains will save you money in the long run. The end result will be a beautiful living room you can enjoy for years to come.

Window treatments refer to any of the following items placed over or around a window: curtains or drapery, including sheers, window blinds, including Venetian blinds, a valance, tiebacks used to hold curtains.

Window treatments also include treatments applied to directly to the glass, including: frosted glass (through acid, etching, sandblasting, or plastic films or panels), distorted optics, such as wavy glass, stained glass panels.

You can choose window treatments, which are low on the pocket or even classy. Like wood blinds, shutters, Roman Shades, Woven Woods, Cellular shades, and Woven Woods lined in Blackout lining.

Plantation shutters could be categorized as an elegant window covering made of two or more framed panels of fixed louvers. A rod that is attached moves the louvers within the frame on the outside of the louvers. By using plantation shutters, the owner can choose the amount of light, which is required to be let in and in what direction by angling the louvers; you can make a bright choice.

In regard to windows there is a vast choice available to the home owners such as: window shades, window coverings, window blinds, window treatments curtains, bamboo window shades, bamboo shades, arch window blinds, interior shutters, and vertical blinds.

While using Window shades, you can give your home a unique and distinctive design. Energy cost can be reduced to a huge extent by keeping and allowing the use of natural sunlight. Bamboo shades, give out a very ethnic look to home along with a cozy and warm ambience.

A window covering is material used to cover a window to reduce sunlight, to provide additional weatherproofing, or to ensure privacy. Window Coverings are usually on the interior side of windows, but can be on the exterior in some situations. Interior shutters can help keep out harmful sun rays. Vertical blinds provide the perfect solution to light control problems. When you choose to use vertical blinds you have a perfect choice for moderated natural lighting as well as you can manage your illumination.

You can give brightness, warmth and security to home by going in for the perfect decision.
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Prior to rushing out to invest in motorized tones you ought to look at what you need to have in terms of supplies, price range and electric power for your windows. One factor to remember is that it requires a lot more power to run larger shades so the dimension of the motor will depend on the size of the window you will need covered.
The supplies they are manufactured of will vary enormously and is completely up to you.
Most are vinyl or cloth since these are the lightest weights available for this design of window therapy. Wood and even aluminum exterior tones demand heavy duty motors and rail systems to run them.

Subsequent you will want to contemplate in which you will be making use of them. They make the perfect replacement for patio draperies, bedroom curtains, and skylight windows or at your front door. They arrive in alternatives of blackout, cellular, vinyl and fabric to match practically any furnishings you have. You can even get them custom made to match your sofa, bedroom comforter or exterior trim. Some of these colors can be ordered in and exterior edition that is perfect for maintaining out the heat in the summer and cold in the winter.

There are a ton of ideas where motorized window shades can be utilised. They make the great cover for a residence theater when it is not in use and they can be employed to cover skylights throughout the daytime hours to stop your house from suffering from the blazing heat of the sun. Most of them are intended for interior use but there are some that can be uncovered for exterior use. These are normally interlocking sheets of aluminum or heavy vinyl that is on rollers with side rails. The modern type of these hues can aid bring your residence back into the present even though offering a contemporary appear.

Motorized window hues are not accessible at all nearby suppliers. There are a range of on the internet suppliers that present these and offer you a discount on shipping as nicely as the charge of the hues.
Costs will differ depending on the dimension you have to have, motor type and kind and the elements the tones are manufactured of. Most are comparatively low-priced although custom made produced will naturally expense much more. It is suggested that you contact your nearby sellers to see what is accessible in your spot and take measurements of the windows to the store with you. For futher reading you can check out Options to Make When Thinking of Motorized Window Tones or Selections to Make When Thinking about Motorized Window Hues