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To: jboot
My point is that you must consider how much revenue you must generate in order to cover your costs, then evaluate whether it is possible, before you embark on a business venture.

Your costs are not dependent upon the purity of your motives, the worthiness of your cause, nor your inability to generate revenue.

The cost exists above this.

From my perspective, most business failures are caused by the entrepreneur's failure to estimate what revenue will be required to make the business a success.

The example we are considering emphatically demonstrates this point.

The young blow-gun manufacturer should take the lesson to heart.

32 posted on 08/08/2005 7:12:10 AM PDT by HIDEK6
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To: HIDEK6

Wise words.


41 posted on 08/08/2005 7:44:27 AM PDT by Roccus
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To: HIDEK6
...you must consider how much revenue you must generate in order to cover your costs...

He did, but the city kept raising the bar.

Your costs are not dependent upon the purity of your motives, the worthiness of your cause, nor your inability to generate revenue...

Not relevant to my point. In regards to the third point, it bears noting that he was making brisk sales and was generating revenue.

From my perspective, most business failures are caused by the entrepreneur's failure to estimate what revenue will be required to make the business a success.

In this case, it was a moving target. There was no way to estimate costs in the face of arbitrary cost increases.

The young blow-gun manufacturer should take the lesson to heart.

Except that he is liable to assume that it is not possible to start a successful business in the current regulatory climate.

43 posted on 08/08/2005 7:57:08 AM PDT by jboot (Faith is not a work)
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