Marn is at a life crossroads. He recently finished a contract informaon technology (IT) posion with Robert Half Management Consultants. As the project is complete, there is no ability to connue the posion. He is considering his next steps. He finds living in the lower Mainland very expensive. As he is in his mid 20's he is thinking it might be me for an adventure and has been looking at opons to relocate elsewhere in BC. Based on his research, he has noted that the Williams Lake area does not have a lot of tech support. Marn is thinking about opening a mobile repair shop. His idea is that he can service the local marketplace and connue to look for remote, IT contract posions to help supplement his income. By living in a lower cost area he thinks his rent would be cheaper so he would be able to save more for his goal of travelling. Marn spoke to a friend, TJ, who owns a landscaping business, about this business idea and they have determined that he can feasibly start by repairing 10 phones / tablets a week earning revenues of $200 to $300 per service, and will take him about an hour per job. Marn has contacted a major phone supplier who has quoted him $100 each per screen, with a 5% discount if he buys 5 screens at a me, 10% discount if he buys 20 screens at a me or 20% discount if he buys 50 screens at a me. Each screen would be specific to a phone or tablet model. TJ also projects that once Marn's reputaon is established, there would be a demand for 5 laptop repairs and tune-ups a month in the community, with the average revenue of a repair of $175. TJ projects that business volume for both the phone / tablet repair and laptop repair business will grow by 20% a year unl it stabilizes about 3 years aer the business starts. On average, a laptop repair and tune-up would cost TJ $40 in labour costs (he cannot do repairs himself but is hoping he can learn over me), $10 in materials, and $5 in variable overhead costs. TJ has stressed that understanding the growth potenal of the business and building financial projecons taking into account a mul-year approach is important. Marn plans to work out of his home to start and is wondering how much less he would be paying for a 1 bedroom apartment rental in Williams Lake compared to his currently monthly rent of $2,625. He plans to use 15% of his apartment for the business and wants to make sure any income projecons keep his personal and business expenses separate. Addional business expenses would be $50 a month for adversing, and $200 a month in vehicle expenses (business related poron only). Currently, Marn commutes on transit in Vancouver, but ancipates that he would need a car to get around Williams Lake. He wants to know how the inial purchase of a vehicle would be recorded in the business, as well as any ongoing expenses. He was looking at a second-hand SUV in the range of $10,000. Marn wants to know how much start-up capital he would need for the business. He currently has $15,000 in savings that could go towards his moving costs and any inial business expenses. He also has a line of credit available through his bank to a maximum of $10,000, with a current interest rate of prime plus 2%. He's concerned about how much interest expense would cost him per month if he has to use his line of credit and wants to ensure any financial projecons include this incremental expense. Aer giving you all of this informaon, Marn called you the next day and said he had some doubts while he was trying to go to sleep. He's wondering if he can sustain his lifestyle with this business idea, and is wondering if it should be a full-me job for him, or if he should seek out a new, remote IT contract while geng this business going? He can earn $65 / hour + 4% vacaon pay as a consultant with Robert Half Consultants working a 40 hour work week, which is similar to the terms he negoated in his last contract. However, he finds this work to be very stressful and only plans to take three month contracts with a month break in between. During his break period between contracts he would want to go on a relaxaon trip cosng $5,000 to refresh for the next contract. He is wondering about addional business or personal consideraons ed to working full me while starng a new business. As an experienced consultant he is hoping you can provide him some overall advice as well as financial calculaons to support this concern. Marn acknowledges that this would be a major life change for him. As an indigenous man he is hoping the move to central B.C. would make cultural events more accessible to him and that he would be able to build a beter sense of community. However, as a young adult, supporng himself and being financially independent is his primary objecve. Feel free to add general business advice which may benefit Marn, but remember your engagement is primarily to comment on the accounng and financial implicaons of his questions and options