you can use the following example scenario: A small privately owned garage has become a thriving business over the last few years. It carries out routine servicing and repairs to vehicles but does not take insurance work (accident repairs). It also sells second hand cars, averaging one sale per week, but it only has room for 8 cars on the forecourt. The garage employs two mechanics that carry out the repairs and servicing, and one office assistant who deals with the bills and paperwork. The owner normally sells the cars himself and does the accounts. The turnover of the garage is around 5,000 per week in repairs and servicing and 3,000 per week in sales with a pre-tax profit of some 2,000 per week. The garage owner has decided that his current premises are too small to allow the business to expand any further. There is no room to take on a further mechanic and the lack of forecourt space for cars to sell means sales are likely to remain at the current rate. The owner has for some time been thinking about moving to larger premises but now feels a decision has to be made. The owner has asked you as a Risk and Value Consultant to consider options for expanding the business together with the major risks and report back to him.
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