Friday, May 28, 2004

Financial model

Re: [spiers] Financial model

Year one is to target say $350,000 in revenue based on the wholesale price, at
least 50% gross margins and one should expect 10% profit margins. So 35K$ in
profits at the end of year one.

A basic tenent in starting a business is to make sure it pays a salary or do
not do it. So what is the ball park salary number you have in your model?

Dirk,

This is a big question, because the purpose of the business is to support a
lifestyle, and what income will support that lifestyle is entirely up to you.
next, there is much a small business can legally do vis a vis tax planning and
write-offs that support a given lifestyle, but that is subjective and needs to
be addressed with your CPA.

Also, whatever level you pick to start, expect the biz to grow, as your efforts
to ever improve ever pay off.

Finally, note that 10% is net, that is left over paying yourself off, etc. If
you have 35K left over on $350K in sales, well, you then have a performing
business you OWN, you've had a successful year, paid for much and somewhat
supported yourself... how many salary earners have $35k left over at the end of
the year?

John


Puzo & meeting place with manufacturer?

Arrrgggghhhh!

Folks,

My advice on taking people to a restaurant sounds awful...or at least I make
quoting mario puzo sound awful... one would reasonably think when I say "these
people" I am referring to your Italian guests, especially with the last don
reference, etc.. Arrgghh...

Anyway, read 'these people' as any potential suppliers who visit. I like
Puzo's advice, since it supports my contrarian view that we DO NOT need to
impress potential suppliers with our letterhead, card, office space, or the
restaurant we meet at...that we impress them with the quality of our work.
Puzo's lesson is universally applicable. No one has complained of my
characterization, but even I can see it was offensively worded.

I regret my choice of words.

john Spiers


Financial model

John,

Thanks for the guidance as presented in your class. It is really helping to keep
things step by step and in prospective.

I need so clarification on the financial model presented.

Year one is to target say $350,000 in revenue based on the wholesale price, at
least 50% gross margins and one should expect 10% profit margins. So 35K$ in
profits at the end of year one.

A basic tenent in starting a business is to make sure it pays a salary or do not
do it. So what is the ball park salary number you have in your model?

Is there thing else I missed?

best regards

Dirk


meeting place with manufacturer?

Re: [spiers] meeting place with manufacturer?


In a message dated 5/28/04 12:17:42 PM, g.paulazzo@comcast.net writes:

<
I have a manufacturer coming from Italy to meet with us. Where can we meet
with him other that our dinning room table?

Thanks,
Sandy>>

In Mario Puzo's book the LAST DON, Puzo explains that when the mob is buying,
they go to a inexpensive restaurant to cut the deal. When the mob is
selling, they go to an expensive restaurant to cut the deal. So, Mario Puzo's
advice
would be, take these people to an inexpensive restaurant, since you are the
buyer.

Vietnamese restaurants today are what Chinese restaurants were 30 years ago:
cheap, filling and good. Of course, be ready to name your custoemrs, and talk
about what you know about USA markets.

John


Shipping Costs

Re: [spiers] shipping costs


In a message dated 5/28/04 12:10:11 PM, g.paulazzo@comcast.net writes:

<
We plan on attending a trade show in July. When we are at the show and a
customer places an order, how do we know what to charge for shipping and
handling since each order will be different?

Thank you,
Sandy>>

Yikes... you have the booth, as in you paid for it... of course I argue work
thru indpendent sales reps, who ought to have the booth..but on to your
question...

You will have an order form that says something like "prices FOB Seattle"
which tells the customer the customer will pay the freight from seattle to his
store in say, Tulso, OK. So actually, you don't have to worry about the
freight charges.

Now, I'd very quickly get teh catalogs and price lists of your competitors to
study, and find out what their terms and condistions of sale are, and you
adopt those are your own. The directory of US importers, available at major
libraries, will show you who else in usa is importing your kind of product.
This
info is fundamental, so I'd get right on it.

John


meeting place with manufacturer?

Re: [spiers] meeting place with manufacturer?

Hi Gary,

It would depend on your needs. Like if an internet connection or projection
screen is needed for your meeting.

But if it is just a couple of people and you do not need alot of support
apparatus.... just go to Starbucks or a restuarant or hotel lobby etc.

This is very common and no need to take them to your house. I do this all
the time even internationally. Your vendor will think nothing of it.

Starbucks website has locations listed with full addresses so you can
actually provide to your vendor and mapquest the location for them.

Good luck

Dirk Franklin

----- Original Message -----
From: "Gary Paulazzo"
To:
Sent: Monday, May 24, 2004 9:44 PM
Subject: [spiers] meeting place with manufacturer?


> Hello-
>
> I have a manufacturer coming from Italy to meet with us. Where can we
meet
> with him other that our dinning room table?
>
> Thanks,
> Sandy


Monday, May 24, 2004

Shipping Costs

Hello-

We plan on attending a trade show in July. When we are at the show and a
customer places an order, how do we know what to charge for shipping and
handling since each order will be different?

Thank you,
Sandy


meeting place with manufacturer?

Hello-

I have a manufacturer coming from Italy to meet with us. Where can we meet
with him other that our dinning room table?

Thanks,
Sandy