Tuesday, June 29, 2004

A Good Business Mistake

It seems I've been thinking about my finances in the wrong way. I set up a spreadsheet to track my budget and potential revenue and profit from the DVD sales.

All this time, I've been getting stressed as the profits have been shrinking due to increasing cost of production (which I had under-estimated). But -- what hadn't occurred to me is that what I am calculating as profit is based on my already having recouped my initial investment. So what goes into my bank account after all the sales is the full initial investment + any profit.

That makes a huge difference. So now, come September I should have replenished the coffers and have enough working capital for my second project.

 
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