Posted by:
Rich_Crowley
at Tue Nov 17 21:17:12 2009 [ Email Message ] [ Show All Posts by Rich_Crowley ]
Let me preface my analysis with some background, I have a degree in accounting an MBA and after roughly 18 years in corporate, public and government accounting. Suffice it to say, I know a bit about of what I am about to say.
The analysis: Overall, not a bad crack at analyzing the business of breeding. However, you should adjust your analysis to factor the following in your analysis:
- Factor in productivity to every other year, not ever year.
- Factor in present value of money since money costs money and revenue and expenses 10 years from now does not equate to the same value today.
- You need to factor in the cost of care on an annual basis such as electricity, water, etc.
- Initial investment in housing and space. Think of this like a business: you rent or buy space to run a business. Even if it is in your house.
- Labor is a factor, but as an owner, the labor cost is your profit: i.e. paycheck.
- Labor is an issue after a certain amount of effort/volume. How many snakes are you willing to care for in a week/year?
- You need to factor cost of offspring from hatchling to sale date with factor for returns/credits on warranty.
This is a lot to factor and difficult to summarize. I applaud your effort to calculate this and wish others learn from this. A couple years ago, I developed a spreadsheet that does a Return on Investment. For those intersted I have the example available for free download (require Microsoft Excel).
Again, good thought provoking post. ----- ================================
www.richcrowleyreptiles.com
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