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Originally Posted by aceventura3
Let's say you have a solid well run business with the following cost structure for a product that you sell for $100.
50% is cost of materials and overhead.
40% is the cost of labor.
10% is profit of which 5% you reinvest (Capital improvement, R&D, etc.)
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This doesn't sound like a very "solid well-run" profitable business to begin with. It sounds like a money pit to me. If you go into business selling a product with only a 10% profit margin (or 5%!) , you're going to have a lot of stress in your life, as if running a business isn't stressfull enough. You at least better hope this product is not your primary source of income, but something of a loss-leader.
As far as competition goes, this little "experiment" doesn't really deal with any sort of reality, as far as the complications of business ownership. There are ALWAYS adjustments that can be made to overhead, labor, cogs, and such. And also to the items which you wish to sell.
Owning a business is not a political decision. How do "liberals" view business? What an utterly vague question . What does that even mean? Is business a different color to "liberals?" Does business smell different?
Small business owners can ill-afford letting their political leanings interfere with their work, as they are to busy working.
As far as "leaning" politically, I try not to. I am what I am, I think what I think, I am open to suggestions. What does that make me?