A short transcript of a conversation (Mike Andes and Aaron) about business financial risk. Mike warns that the most risky things in business are not knowing your numbers and going into debt together; Aaron admits he does not know key financial metrics. The exchange includes concrete numeric mentions (e.g., “90”, “100,000 a month”, “10 or 20,000”) illustrating uncertainty about revenue, profit, and affordability of new debt.
How much do we still owe on this?
90.
Do you think you can sell it?
I don't want to. I'd rather struggle for a little bit longer.
Let's say we do 100,000amonth in revenue.
Is that usually.
10 or 20,000 of that coming from trees then?
I don't really know the numbers on that.
You want to know the most risky thing in business? Not knowing your numbers and going into debt. You combine those two things and you have a lethal combination that many times leads in catastrophe.
I've been struggling for this long, you know, years, like.
So for Aaron not to know his numbers, but then also be able to say, well, I can buy equipment and I can go into debt because the numbers make sense. We don't even know our numbers. We don't know how much revenue it's going to produce. We don't know our hourly rate. We don't know how much profit we had last month. How do we even know if we could afford this new debt?
