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What's a Freelance RPG Writer Worth?
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<blockquote data-quote="Steve Conan Trustrum" data-source="post: 7735024" data-attributes="member: 1620"><p>And I get that. But you're forgeting factor Y: sales aren't likely to always cover Z once you've made that move and invested your company on that path, so you also need A, a cash reserve.</p><p></p><p>Based on your previous post about not being able to pay everyone up front all the time, I'm going to assume you don't currently work with an operational cash reserve, correct?</p><p></p><p>Some of the most common reasons small businesses fail is they either expand too early (not your situation), too fast (that would depend on what you do), and because they do so without sufficient planning. Expansion and growth success isn't just about the "sales justifying it." It's about being prepared to look beyond your current sales and where they are driving you. It is about realizing that now, with regular expenses, your currently mutable business model is going to have some very rigid and unforgiving expenses to handle. So, you're not just looking at monthly incomes covering your new office and warehouse, for example, you're looking at creating a cash reserve to account for product delays that interrupt the cash flow, to deal with potential problems with your facilities, for insurance increases, for unforseen property tax increases, for your distributor evaporating overnight with unpaid invoices and stock (e.g., Wizard's Attack), etc. </p><p></p><p>Because this is what I'm talking about.</p><p></p><p>This kind of thing means you would need to take in either a larger percentage per sale than you are now or you'd need to sell a lot more product to build your cash reserve. This is the sort of thing that happens to a business once it leaves the basement and starts acquiring actual business assets and debt. It is how "big" small businesses can be larger than your operation, but actually have a smaller net worth.</p><p></p><p>Which is how businesses plateau instead of growing. Business growth almost always requires a risk to things like pay and jobs. It's usually unavoidable unless you build a massive cash reserve first or receive an external investment.</p><p></p><p>It sure would be!</p><p></p><p>... but that's not what I'm saying.</p><p></p><p></p><p>"Personal resource" is something in your name and not your business'. If your business gets into financial or legal trouble, it isn't attached to that issue, for example.</p></blockquote><p></p>
[QUOTE="Steve Conan Trustrum, post: 7735024, member: 1620"] And I get that. But you're forgeting factor Y: sales aren't likely to always cover Z once you've made that move and invested your company on that path, so you also need A, a cash reserve. Based on your previous post about not being able to pay everyone up front all the time, I'm going to assume you don't currently work with an operational cash reserve, correct? Some of the most common reasons small businesses fail is they either expand too early (not your situation), too fast (that would depend on what you do), and because they do so without sufficient planning. Expansion and growth success isn't just about the "sales justifying it." It's about being prepared to look beyond your current sales and where they are driving you. It is about realizing that now, with regular expenses, your currently mutable business model is going to have some very rigid and unforgiving expenses to handle. So, you're not just looking at monthly incomes covering your new office and warehouse, for example, you're looking at creating a cash reserve to account for product delays that interrupt the cash flow, to deal with potential problems with your facilities, for insurance increases, for unforseen property tax increases, for your distributor evaporating overnight with unpaid invoices and stock (e.g., Wizard's Attack), etc. Because this is what I'm talking about. This kind of thing means you would need to take in either a larger percentage per sale than you are now or you'd need to sell a lot more product to build your cash reserve. This is the sort of thing that happens to a business once it leaves the basement and starts acquiring actual business assets and debt. It is how "big" small businesses can be larger than your operation, but actually have a smaller net worth. Which is how businesses plateau instead of growing. Business growth almost always requires a risk to things like pay and jobs. It's usually unavoidable unless you build a massive cash reserve first or receive an external investment. It sure would be! ... but that's not what I'm saying. "Personal resource" is something in your name and not your business'. If your business gets into financial or legal trouble, it isn't attached to that issue, for example. [/QUOTE]
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