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Old 02-04-2010, 09:31 AM  
mkx
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Join Date: Nov 2003
Location: Toronto
Posts: 4,001
Quote:
Originally Posted by epitome View Post
What in the world are you doing with the existing profit if you need to borrow as little as $10k with $55k in sales last month and $80k projected this month?

Even with a small 10% profit margin you'd have $8k at the end of the month.

Combine that with last months profit of hopefully at least $5,500 and you have well over the $10k minimum you need.

Hopefully your margins are better than 10%...
Margins are pretty much 10%, it's in a competitive market, high quantity low price. That $5,500 obviously gets reinvested but is not going to buy much at the end of the month. It will take a year to build a good $100k worth of capital, or with a loan, the business can build at least double that.
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