> > Godfrey, > > Your response ignores my entire point. I dunno where you got > Hobbyists > costs from what I posted, since I was talking about a pro shooter's > costs. My point is that certain types of work require much larger > investments in gear and thus you aren't going to be able to amortize
> them over 3 years or easily switch systems (due to initial > cash outlay > required). So while your point (that you'll simply switch kit > if Pentax > becomes unavailable in the future and your bodies fail) is valid, you > need to understand that it isn't a simple exercise for some > due to the > cost of switching, if only for the reason that replacing the kit > requires a very large outlay (And on that point, amortization is > irrelevant, since we're talking capital costs here, and not > insignificant ones some someone who shoots that type of thing, > amortization is how you're going to pay the kit off, not how > you get the > initial outlay). > > -Adam > I do think Godfrey addressed this, as least as I read it. If the initial outlay is so large that you can't amortize your capital costs over 3-5 years (whatever), then you shouldn't buy the stuff, you should rent it. You get the initial outlay from your investors or from your company's cash holdings, and that's where the business plan comes in. When you start the business you have to show how you're going to repay the investment capital, with dividends, and over what period of time. Part of your plan is where you're going to get the money to replace the capital equipment once it has depreciated to zero and you've been able to get some free use (aka profit) out of it. If you haven't planned to replace your capital equipment you're not running your business properly and you're going to face a God-almighty cash flow crisis when the time comes, which I believe is the point you're making. Your point and Godfrey's point are not incompatible, they're both aspects of running a business which requires high capital investment. Regards Bob -- PDML Pentax-Discuss Mail List [email protected] http://pdml.net/mailman/listinfo/pdml_pdml.net
