Re: Fear of Life (was Microsoft, Automation)
Wed, 6 May 1998 07:10:05 -0500 (CDT)
At 22:30 5/4/98 +0000, you wrote:
>> I don't understand what you mean when you say that your costs must be
>> recovered before you make a profit. You cover costs BY making a profit.
>> That's the whole point. :)
>I think you're confusing revenues with profit.
>Revenues is every dime of income from sales or rental of goods,
>services, or capital.
>Profit is what is left of revenues after you pay all costs.
>So you cannot cover a cost by making a profit.
>You have to cover *all* costs before you make *any* profit.
Thanks for the clarification. This is important to understand for a
businessman, which I try to be. I am still learning, obviously.
This supports my original point. I must generate revenue from sales of my
product before I can recover my costs, and therefore make a profit. This is
going to be very difficult if I do not have the exclusive right to my