Sin TV - General Chat & Discussion

^^ Tried to keep it simple if Rammy does not do economics

It is pretty obvious to most that currently costs exceed income. That will be the case with most start up companies. The critical thing here is how big the channel's working capital is (I am also a retired accountant) and how long they have budgeted for these losses. In accountancy-speak there is an important document called a cash-flow forecast which predicts when income will at the very least cover costs so that working captital is not decimated. I prepared many of these in my time and I always told the client to err on the side of caution and not expect income to be optimal for some time. If you have followed 'The Apprentice' you will see how the business plans of these budding entrepreneurs are regularily savaged by the experts because the sums do not add up. Still waiting for someone to propose setting up a babe-channel