elohel
10-06-2011, 11:48 PM
I'm strongly considering starting a business in my home town. I'm more or less mimicking another business model that is already out there, and I noticed they're looking for franchisers in this same town.
I'm wondering about the legality of things when competing. Say they moved into the same town a year after I opened. I realize it's illegal to operate a business at a loss. However, could I operate at a near loss, or operate at more or less cutting even?
I might as well toss this in here as well, even though I'm about 99.35% this is illegal and I'd get thrown in jail for it.. could you operate at a loss to drive a competitor out, but then sell a few big-ticket items to recoup those losses, even if they weren't legitimate sales? I.e - operate a loss, then sell something to a friend for $50,000. Sounds insanely illegal, but I figured I'd ask :P
The business I'm planning on starting already runs on slim profit margins, so if they came in, I'm not sure how viable we could both be.
Thanks
I'm wondering about the legality of things when competing. Say they moved into the same town a year after I opened. I realize it's illegal to operate a business at a loss. However, could I operate at a near loss, or operate at more or less cutting even?
I might as well toss this in here as well, even though I'm about 99.35% this is illegal and I'd get thrown in jail for it.. could you operate at a loss to drive a competitor out, but then sell a few big-ticket items to recoup those losses, even if they weren't legitimate sales? I.e - operate a loss, then sell something to a friend for $50,000. Sounds insanely illegal, but I figured I'd ask :P
The business I'm planning on starting already runs on slim profit margins, so if they came in, I'm not sure how viable we could both be.
Thanks