Monday, 11 March 2013

Caselet on Settle in India versus abroad

Caselet-Settle in Canada versus India.. Chirag Patel is a physiotherapist, who till three years back was working in a major health club in India. Three years ago he was working eight hours in the health club and earning a measly Rs 6000/-, however the owner of the club had promised to increase his pay and responsibility as time went on. But, Chirag was not agreeable to this, what more responsibility would involve would be more than eight hours in the gym, zero social life and an increase of probably Rs 4,000 in pay packet. He came from a modest background, unlike Delhi based physiotherapists, Ahmedabad based physiotherapists don’t think of government jobs, in terms of private business, he had worked out the finances of opening a small gym with his fiend and it did not seem feasible. Its three years from that time, now Chirag is in Canada, he came to India recently and asked you to build up a scenario analysis for him- This is what he told you- He is yet to get a permanent residency in Canada, but he might get it in three four months, breaking into physiotherapy either for private visits or as an instructor in a gym in Canada is difficult, The Canada Physiotherapy Exam needs to be passed which is difficult, other choice is doing an MBA in Health Management, and working as an executive –health for some firm, but to get the loan for that course he must get permanent residency first. He is based in a part of Canada which is very cold. He works as a supervisor in a store in Canada. He got engaged in Ahmedabad to a nurse in this trip. He has manged to save some money, about 15,000 Canadian dollars, but a lot hinges on whether he gets permanent residency of Canada this fall. He asks you to build a sheet for him analyzing the choices in front of him…

Caselet on Partnership versus own investment as Entrepreneur

Caselet- Self owned health club versus partnership.. Yoginder Verma is a 30 year old Physiotherapist. He has done a Bachelors in physiotherapy. He was an instructor in a major health club in Ahmedabad till recently, since the past one year, he and his three friends have invested Rs 10,00,000 each in a small health club/gym in Paldi, he and his two partners earns approximately Rs 10,000 a month each from this health club, besides this Yoginder earns approximately Rs 25,000 a month from home visits for general health exercises and rehabilitating exercises. Yoginder and his friends have to pay Rs 35,000/- as Rent for the shops leased in as the gym. Yoginder recently thought of this idea, he has approximately forty lakhs saved up, can he buy the shop (Shop Sale Price =Rs 40 lakhs) which has till now been taken for rent? Then, he will own the gym premises and get a 5:2 share of the profits which till now is being shared 1/3 between each partner. He comes to you and asks you to give your opinion on this issue? What will be your advise?