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Example of what 20% looks like
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<blockquote data-quote="GMforPowergamers" data-source="post: 8882794" data-attributes="member: 67338"><p>oh yes this is revenue not profit...</p><p></p><p>in the above example it is possible that after that 5% and then that 20% over 750k that the profit is $0... in fact if you don't plan well and get a run away you could end up not being able to deliver because it would cost you more to make the product then you have.</p><p></p><p></p><p>I have not done the books for a kickstarter, but I have done the books for small businesses. I can tell you I have watched as year 1 and 2 of a start up runs in the red and year 3's catching up to black really means that the company made a few hundred dollars over the 3 years. I have watched GAME STORES multi go out of business pre covid because the owners were working 100+ hours unpaid while a spouse worked OT at a different job and still put 20ish hours into the store... and they were not making it. </p><p></p><p>I have a friend I help with books in publishing (ha, books, publishing, I kill me) and he only keeps his little press around losing money sometimes because it allows him to keep his own out of print works and his friends out of print works IN PRINT... and in doing so if he makes money it's a bonus.</p></blockquote><p></p>
[QUOTE="GMforPowergamers, post: 8882794, member: 67338"] oh yes this is revenue not profit... in the above example it is possible that after that 5% and then that 20% over 750k that the profit is $0... in fact if you don't plan well and get a run away you could end up not being able to deliver because it would cost you more to make the product then you have. I have not done the books for a kickstarter, but I have done the books for small businesses. I can tell you I have watched as year 1 and 2 of a start up runs in the red and year 3's catching up to black really means that the company made a few hundred dollars over the 3 years. I have watched GAME STORES multi go out of business pre covid because the owners were working 100+ hours unpaid while a spouse worked OT at a different job and still put 20ish hours into the store... and they were not making it. I have a friend I help with books in publishing (ha, books, publishing, I kill me) and he only keeps his little press around losing money sometimes because it allows him to keep his own out of print works and his friends out of print works IN PRINT... and in doing so if he makes money it's a bonus. [/QUOTE]
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