startup-flash car or sensible?
Discussion
this isn't strictly a b2b question but i'm in the process of setting up a software company and i've got quite a bit of funding. The business plan looks great and being a car nut, cars feature on the priority list.
For my own use do I get a Xsara Picasso that I can pass onto the Mrs once the business is settled or do I get the RX8 that I'm lusting after? There's £10k difference between them.
There's a few ways of looking at it : reward myself for all the hard work I'm putting in now and will have to put in once it's up and running by having the RX8 from day one (it'll also remind me how hard i have to work to keep it) or do I get the Xsara on the basis I'll want shot of it asap?
I'm sure you're going to say get the Xsara but I'm sooo close to deciding on the RX8. There has to be some perks - right?
Not sure if this is blatant advertising but I'll be offering website/web application development. I'm a consultant rather than a developer but will have designers and developers available shortly.
dan
For my own use do I get a Xsara Picasso that I can pass onto the Mrs once the business is settled or do I get the RX8 that I'm lusting after? There's £10k difference between them.
There's a few ways of looking at it : reward myself for all the hard work I'm putting in now and will have to put in once it's up and running by having the RX8 from day one (it'll also remind me how hard i have to work to keep it) or do I get the Xsara on the basis I'll want shot of it asap?
I'm sure you're going to say get the Xsara but I'm sooo close to deciding on the RX8. There has to be some perks - right?
Not sure if this is blatant advertising but I'll be offering website/web application development. I'm a consultant rather than a developer but will have designers and developers available shortly.
dan
Go the sensible route is my advice, then you have another £10k to play about with when things get tight, it also looks better to your investors, that you are sensible with your money. Time enough for the RX7 when the business is a goer.
Cashflow is king and if you don't have it, even a very profitable business can go out of business and £10k is a very useful piece of cashflow you might regret not having.
Just my 2p and good luck with your business.
Cashflow is king and if you don't have it, even a very profitable business can go out of business and £10k is a very useful piece of cashflow you might regret not having.
Just my 2p and good luck with your business.
Nine years ago I had this exact choice whilst starting up my software business. I had money and was tempted to buy a Calibra. The sensible choice was a Cavalier.
I bought the Cavalier as it meant I could retain the large price difference in my personal buffer of cash. This meant that during the unexpectedly long time it took for the business to start delivering profits from which I could be paid I had cash to spare and never got really poor...I'd have had to give up and get a job without the extra money and I would never have achieved the benefits I have today.
During the early years of a business don't spend a penny more than you have to...later on when its the huge success you deserve...go buy your toys.
I bought the Cavalier as it meant I could retain the large price difference in my personal buffer of cash. This meant that during the unexpectedly long time it took for the business to start delivering profits from which I could be paid I had cash to spare and never got really poor...I'd have had to give up and get a job without the extra money and I would never have achieved the benefits I have today.
During the early years of a business don't spend a penny more than you have to...later on when its the huge success you deserve...go buy your toys.
Don said:
During the early years of a business don't spend a penny more than you have to...later on when its the huge success you deserve...go buy your toys.
Do not ignore advice like that. Some consultant would charge a fortune to tell you the same thing! Only dress it up in a fancy way.
Take as much advice as you can from people who have done what you're trying to do. Their advice is free and generally top notch.
Best of luck .....
Paul.
danhf said:
.... The business plan looks great and being a car nut, cars feature on the priority list. ...........
dan
Dan, we have more than doubled our business plan forcast on turnover for the year in the first six months! This does not make our business a success, the extra cash will help us survive the hard times that no doubt lay ahead. Business Plans are only a tool to show you have considered costs v sales. A bank manager may like them but untill the business has a history they are only a plan!
Also, any profits we have made have been re-invested into plant/equipment. This inturn allows us to do work we were previously unable to tackle. Unfortunately, an RX8, TVR, Exige or M5 does not make us more capable to do the job. (Damn shame!)
Paul.
Thanks for all the input.
Yep, when I meant the biz plan looked great I mean I've had to massively tone it down to make it look realistic. I'm in a fairly rare position where I know a hell of a lot about the vertical that we're targeting. I've worked in that field myself for some years and two of the people coming in are working in that field. But as you say, I have no doubt that the biz plan will be worth nothing in 6 months - for the right reasons hopefully.
I've been thinking today and I've decided to go for the Xsara. Apart from anything else it'll make us look bad to the investors. It has to be said that £10k over 3 years is not a lot of dosh but I'll be sensible...
For the record, the investment amounts to the complete running costs of the business for 18 months. By that time we'll have the cash flow required to stay on our own two feet. I've worked for companies with cash flow problems and I'm only doing this venture because I have the proper backing.
I reckon an RX8 will get me to work 2 mins 23seconds sooner therefore saving the company 25pence over 2 years - surely that's enough justification? ;-)
Thanks for the good luck messages.
dan
Yep, when I meant the biz plan looked great I mean I've had to massively tone it down to make it look realistic. I'm in a fairly rare position where I know a hell of a lot about the vertical that we're targeting. I've worked in that field myself for some years and two of the people coming in are working in that field. But as you say, I have no doubt that the biz plan will be worth nothing in 6 months - for the right reasons hopefully.
I've been thinking today and I've decided to go for the Xsara. Apart from anything else it'll make us look bad to the investors. It has to be said that £10k over 3 years is not a lot of dosh but I'll be sensible...
For the record, the investment amounts to the complete running costs of the business for 18 months. By that time we'll have the cash flow required to stay on our own two feet. I've worked for companies with cash flow problems and I'm only doing this venture because I have the proper backing.
I reckon an RX8 will get me to work 2 mins 23seconds sooner therefore saving the company 25pence over 2 years - surely that's enough justification? ;-)
Thanks for the good luck messages.
dan
Gassing Station | Business | Top of Page | What's New | My Stuff