Deal or No Deal!
Thursday, April 30, 2009 // 2:14 PM
Lalala! It's time my blog posts start sounding a bit more exciting! I'm sorry for the slacking off but I will try my best to make them amazing from now on.
Business Concept - explain roughly what plan is for your business
General Idea
Costs and obstacles
How will you make money?
Why should Mr. Case not laugh at this idea?
Just because everyone laughs at your idea does not mean it won't work but try to keep in consideration the viability.
Gross = total amount of money we bring in
Net = is amount of money you earn after deducting the expenses
Capitol expense = any expenses that you will have even after your business is done (e.g. a camera is a capitol expense but film is not because once you've used up your film, it's gone)
operational expenses + consumable expenses are other type of expenses
The tricky part may be that although you business loses money initially, some businesses have the capitols purchases which means you can reuse them for next summer or the summer after meaning that in the long run, your business will turn a profit and become viable.
Opening a business is always a risk but would you rather make 2000 working the whole summer at McDonalds or lose maybe 1000 in a month but have all the capitol expenses paid off to make money next summer. Therefore, you have to decide.
Pros of owning a business:
- you are your own boss
- if all goes well, you can make more in the long run than in McDonalds
- job experience
- owning your own business means you tend to work harder because you want yourself to succeed whereas if you worked in McDonalds you probably will be bored and not very interested in the fundamentals of your job
Cons of owning a business:
- Risky
- may not always turn a profit
- lots of work and stress
Personally, I'd take the business road anyday. I think if you want to succeed in life, you must take risks. It's an absolute must.
Labels: capitol, consumable, expense, gross, net, operational