Friday, October 23, 2009

What does it mean to profit-share?

There must be profits in order to share them.

No profits mean that your debt is greater than any money you actually made.

Simple concept, yet a concept not easily grasped by those who have never had to actually start a business, run a business or keep one going.

If you are a lucky business owner fortunate enough to work 9-till whenever-shit-gets-done because there is only YOU to gitter done as opposed to a 9-5er......you get it.


2 comments:

  1. INDEED! The investment in TIME is ten fold... no, I mean twenty plus fold the amount of money invested. We have poured thousands of hours into preparations, promotions, recordings and rehearsals in complete efforts to keep moving forward. We've surveyed the competition. Changed marching orders. Changed battle plans. Restructured the team... all in efforts to keep moving forward.

    One of these days is will come back...
    TWENTYFOLD!

    www.joelportrock.com

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  2. Exactly Jason! Malcolm Gladwell points out that in order to be successful at something, you need to invest 10,000 hours. The myth of rags-to-riches or "being in the right place at the right time" only comes AFTER putting 10,000 hours into trying to be successful at something. Except people don't see that effort because those 10,000 hours are boring and methodical to most people...except to the person putting them in. To him/her/them, they are essential.

    With profit-sharing, you understand that an organization, especially a start-up business, probably won't see profits for 3-7 years. If your expenses are more than your profits.... Profit is $0. And in any math class any number times 0 is.....well....

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