"The Captains Nemesis" wrote in message
...
On Mon, 15 Sep 2003 23:47:36 +0100, "Donal"
wrote:


"The Captains Nemesis" wrote in message
news
You should talk to your bank manager, OD is very useful in the early
stages of building a business.

That is very bad advice.

Oh really?

How many businesses that start with an overdraft, still have it 10 years
later? People who get used to having an overdraft, and up depending on
it.
That is no way to get rich.

Now that really depends on your income eh?

That is a very simplistic view. It really depends on your expenditure,
doesn't it? After all, if you had no expenditure, why would you need an
overdraft?

You're not a real businessman, are you?

Your success probably owes more to luck, than to judgement.


Regards


Donal
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"The Captains Nemesis" wrote in message
...
On Tue, 16 Sep 2003 01:18:18 +0100, "Donal"
wrote:

That is a very simplistic view. It really depends on your expenditure,
doesn't it? After all, if you had no expenditure, why would you need an
overdraft?
Hey, I'm talking to a simpleton aren't I?

That's a feature of Usenet. I am whatever you believe me to be.


Oh and if you have no expenditure, you're doomed to remaining small

The average overdraft tends to be the equivalent of about one month's
turnover. Let's say that is about 5 months profit. Instead of having the
OD, a small business could just wait the 5 months before spending the money.
After that, all growth is just 5 months later than it would have been, and
the costs are lower.

A business with an overdraft is also very susceptable(sp?) to recession and
rising interest rates - whereas a company with money in the bank can see its
costs drop (or interest income increase) during a recession.


Your success probably owes more to luck, than to judgement.

Quite possibly. But you know what they say about luck.

Yep, and I completely agree with them.


Regards


Donal
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"The Captains Nemesis" wrote in message
...
On Tue, 16 Sep 2003 14:57:37 +0100, "Donal"
wrote:


"The Captains Nemesis" wrote in message
.. .
On Tue, 16 Sep 2003 01:18:18 +0100, "Donal"
wrote:

That is a very simplistic view. It really depends on your
expenditure,
doesn't it? After all, if you had no expenditure, why would you need
an
overdraft?
Hey, I'm talking to a simpleton aren't I?

That's a feature of Usenet. I am whatever you believe me to be.


Oh and if you have no expenditure, you're doomed to remaining small

The average overdraft tends to be the equivalent of about one month's
turnover. Let's say that is about 5 months profit. Instead of having the
OD, a small business could just wait the 5 months before spending the
money.
After that, all growth is just 5 months later than it would have been,
and
the costs are lower.

Hmmm wait 5 months to buy stock?
What are you going to sell/condume in the mean time.
No stock, no sales, no business.

I don't think that I suggested anything of the sort.

Are you suggesting that you should borrow money to start the business? This
is only a viable option for a tiny percentage of people. Most people will
come to depend on the OD. They never manage to get rid of it.




You are an employee right?
Wouldn't it be easy if we could run a business without stock, without
customers and without employees.

Yes, but that is real "pie in the sky". What's your point?


A business with an overdraft is also very susceptable(sp?) to recession
and
rising interest rates - whereas a company with money in the bank can see
its
costs drop (or interest income increase) during a recession.

Wow Donal...that's amazing.
You know successful business spend a lot of time budgeting and
forecasting.

True, ... and some spend a lot of time selling, and looking after customers.
Once again, what's your point?

BTW, we won a government contract last week that means a 30% expansion for
us. It is a three year contract, with an option to extend for two years.
Life is good, eh?


Regards


Donal
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