At 24 years old, I bought an existing franchised restaurant in Kitchener with $250,000 in annual sales.
At the end of year one, I asked my chartered accountant how to improve my bottom line. The CA replied, "I rarely see a first year of operations in the black, like yours is." The CA handed me a bill for $4,000.
I paid the bill and – fired the CA.
I interviewed other CA firms until I found a CA who would present me with 7 restaurant statements with their names removed for privacy.
I used the profitable restaurants statements as a guide to increase profitability.
I increased sales to $750,000 in less than 3 years by differentiating my restaurant from the competition by opening 24 hours a day.
Feeling that the franchisor was not providing value for the franchise royalties – I stopped paying the franchisor.
I by-passed Kitchener law firms, opting to consult with a large Toronto law firm, seeking the expertise of the law firm today known as Stikeman Elliot LLP.
Stikeman Elliot quickly negotiated my restaurant's exit from the franchise agreement – without penalty or the requirement paying back 2 years of franchise royalties I withheld. My choice in opting for talented expertise paid off.
I bought into another restaurant and a Motor Hotel.
Feeling the need to change industries after 5 years of operating in the hospitality industry, I sold my interest in all the food service operations.
I joined a distribution company.
6 years later, the U.S. headquartered Distribution Company decided to leave Canada, due to the plummeting Canadian currency.
Offered an opportunity to buy 50 per cent of a sister Michigan Distribution Company with annual revenues of $2,000,000, I obtained a green card and went to work in Michigan.
With my Michigan partner, we grew the business to $13,000,000 annually.
When I bought into the company, my partner applied for life insurance coverage to fund our buy / sell agreement. The life insurance company did not approve my partner for coverage. I did not think this was crucial at the time.
One day a voice on the phoned said, "David died." He was my partner and only 55.
I had to sell the business to meet his widow's demands.
Returning to Canada, I joined a large Canadian insurer to make sure my story did not become another business owner's story.
Frustrated by the lack of concern for risk avoidance practised by business owners, but noting that a business owner was ready to discuss methods I employed to improve my bottom line in my various business ventures; I opened a consultancy practice.
As a sole proprietor, thoughtful business owners and manager can obtain a review of their business from an experienced senior executive– who they could not afford to hire full time, but can obtain improved profitability by retaining me in a cost effective advisory relationship.
