Monday, 11 March 2013
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?