----- Original Message ----- 
From: "Bob W"
Subject: RE: Rv: Don't shoot the messenger ;-)


> 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.

I think it is a little strange that business plans are being discussed 
regarding buying equipment from a company that hasn't shown much of a 
business plan itself for many years, nor has been catering to people that 
would factor in a business plan as part of their equipment buying strategy.
I also find it incredibly arrogant to brush off concerns regarding the 
ability to buy cameras in the future by writing them off as people with poor 
business skills.

William Robb 


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