I certainly understand people not wanting to respond, etc. but the thought that the scenerio is not true to life or unreasonable strikes me as a bit odd.
The begining analysis of any business problem begins with a review of historical information and making assumptions about the future. I don't know how some of you would make your business decisions, but the way I make mine is to assess my costs and income and build a proforma income statement. This is exactly what was in the OP, in a simplified form.
Perhaps some of you can tell me how you would have made the OP more realistic. Otherwise, I will conclude that you simply want to avoid the embarassment of answering the questions I presented.
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Originally Posted by ratbastid
See, Ace, your question is posed from a black-and-white paradigm of corporate behavior. It's survival at all costs, and that's that. What I hope pan and I, and other liberal entreupeneurs have demonstrated is that there are a myriad approaches to having a business succeed while still treating the staff like human beings, and not like numbers on a general leder. It may take more creativity, but it's also more fun and more rewarding, and it's WAY better than mere survival.
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You have not proved anything. Pan's business failed. Roachboy rejected the problem. Others have took the route of saying the OP is not realistic. Like the ostrich that sticks his head in the sand - liberal entreupeneurs seem to want to take the path of avoiding reality, avoiding tough choices and avoiding real debate.
Just to be clear. Regardless of the OP, assumptions, simple business problems, etc. - I ask this question:
If you have to address labor costs, how do you do it?