RPGnet Columns
07-05-2002, 11:35 AM
Post originally by Tom Pigeon at 2002-07-05 10:35:30
Converted from Phorums BB System
Good column. However, when it comes to the time estimates on running a business, I think you are being way too optimistic. I would say double all of the time you have listed.
As a business owner myself (a publishing business, no less, though not game related), I can attest to the work. I have a partner, 1 full-time employee, and between 2-4 freelance employees. Still, I am an executive partner, the creative director, the public relations head, the human resouces expert, and the janitor. I work myself harder than any employer could every legally work me, and for less.
Of the people I meet who want to start a business, and there are a lot of them, I would say that 100% of them have no clue what they are getting into. They all go through the same process of crunching how much money they can make, and how much it will cost them, and how this will all work out. On paper, it looks great. However, their estimates are always wrong. Always. I know mine were.
I generally tell people, OK, work out how you think your business will work. How much revenue do you think it can bring in, and how much will it cost you to run? Be as logical as possible and realistic as possible, try and think of every angle, every dollar, and every expense. Now that you have it all figured out, cut the revenue in half and double your expenses. This is how it will very likely actually work out. If the numbers still look good to you, go for it. If not, you need to rethink the enterprise.
Converted from Phorums BB System
Good column. However, when it comes to the time estimates on running a business, I think you are being way too optimistic. I would say double all of the time you have listed.
As a business owner myself (a publishing business, no less, though not game related), I can attest to the work. I have a partner, 1 full-time employee, and between 2-4 freelance employees. Still, I am an executive partner, the creative director, the public relations head, the human resouces expert, and the janitor. I work myself harder than any employer could every legally work me, and for less.
Of the people I meet who want to start a business, and there are a lot of them, I would say that 100% of them have no clue what they are getting into. They all go through the same process of crunching how much money they can make, and how much it will cost them, and how this will all work out. On paper, it looks great. However, their estimates are always wrong. Always. I know mine were.
I generally tell people, OK, work out how you think your business will work. How much revenue do you think it can bring in, and how much will it cost you to run? Be as logical as possible and realistic as possible, try and think of every angle, every dollar, and every expense. Now that you have it all figured out, cut the revenue in half and double your expenses. This is how it will very likely actually work out. If the numbers still look good to you, go for it. If not, you need to rethink the enterprise.