Cost of starting your own business?

[EverSoar]

Its just stupid..

Your gonna make way more money than that. Otherwise whats the point of it.

Ok lets try a different perspective. Say you want to own a property, how much is that land gonna cost?

 

[Vaxalon]

So your telling me,

that it costs 500gp to make a smith, 30gp a month for a smith, and it makes 55gp a year?

thus running at a 340gp loss?

You're expecting to make up your entire investment the first year???

THAT is what's whacked.

 

[Vaxalon]

Say you want to own a property, how much is that land gonna cost?

It'll cost ten times what it presently earns in a year, plus five times the potential earnings.

Potential earnings are the earnings that could be made if an investment were made in the infrastructure required to exploit the resource.

 

[EverSoar]

i must admit, i'm considerably confused..

How are you meant to make money, if you can't afford to keep it open?

And how are you going to know what a year's earnings are?

 

[Vaxalon]

Okay, Eversoar, answer this:

If you put $100 in the bank, how much do you expect to find there at the end of the year?

If you buy $100 worth of stock (in a company that's growing) how much do you expect it to be worth at the end of a year, including dividends?

 

[Umbran]

i must admit, i'm considerably confused..

How are you meant to make money, if you can't afford to keep it open?

The thing you seem not to see is that most businesses require a large capital investment to start. Very few (real or imagined) businesses recover that capital investment in the first year. It takes a while to earn back your startup money.

 

[BeholderBurger]

I dont think using modern day business setup techniques is a good comparison.
What you all fail to see is that if he makes no money then the blacksmith and his family die of starvation.
It is unlikely he would ever have come across an amount of money to invest unless he was an ex-adventurer (maybe explains a lot about FR).
It is more likely that the smithy has been passed down to the apprentice thus no start up costs are needed. Otherwise a person trained in the art of smithing would probably have to petition the local lord or money lender for the money and pay back a percentage for a long time. (Again passing this new property on to apprentices when his time finally came).

 

[Vaxalon]

We're not saying he makes no money.

We're saying that he makes a profit equal to a percentage of the value of the smithy... I think the SBG makes it out to 1% annually, actually, not 10%.

Yes, indeed, the smithy could have been passed down from generation to generation, building up value as it goes. Whether it was built yesterday or five hundred years ago has no bearing on the game mechanics. It's not a "start up cost" but if you wanted to buy the smithy that's what you'd have to pay.

 

[Obelix]

For the love of God!
D&D is not a frikkin' financial game!
You're supposed to kill some orcs, loot them, gain xp and then some day you'll also gain a lvl.
I would recommend a game called Monopoly. ( if thats what its called in this poorly made language)

 

[Vaxalon]

Thank you for your informative and supportive reply, Obelix.