This one’s for you, rilkefan: and here’s a poem I love, which I have no reason to blog other than to say: one of the things I particularly love in a poem is the combination of unexpectedness, beauty, and absolute precision in the use of language, and this somewhat underappreciated poem by Emily Dickinson is absolutely precise in its description of a cat. (It does have a weak 8th line, though, even if you assume that ‘of’ should be ‘off’.)
She sights a Bird—she chuckles—
She flattens—then she crawls—
She runs without the look of feet—
Her eyes increase to Balls—Her Jaws stir—twitching—hungry—
Her Teeth can hardly stand—
She leaps, but Robin leaped the first—
Ah, Pussy, of the Sand,The Hopes so juicy ripening—
You almost bathed your Tongue—
When Bliss disclosed a hundred Toes—
And fled with every one—
The last two lines, in particular, are wonderful.
However, as this is as open thread, feel free to discuss whatever you like.
The 16 Signs Your Cat Is Plotting World Domination (of which my favorite is 6. Or maybe 8.)
I want to ask a question, taking advantage of the open thread, and hopefully benfitting from folks who read this who know much more about business than I do…in preparing a business plan, what conclusions, if any, are you supposed to draw between your Cash Flow Statement and Income Statement. Or, what conclusions about your Income Statement is it wise to highlight?
All this seems so repetitive to me and after weeks of working on this, I’m now totally confused.
I don’t really get Dickinson too often, though the above is nice – it goes from footloose to footless to footful…
Edward, I peeked in Google to shake off some rust and ran across this. Better them than me.
Try ThisEdward,
I’m not 100% sure what you’re asking, but if you are worried about what discrepancies between accounting profits and cash flow imply, I would say the first thing is the need for financing (assuming CF is negative). The type of fnancing would depend on the source of the problem. If you have a lot of cash tied up in equipment or other fixed assets you may need a long-term loan, or equity investors. If it’s due to high inventory or receivables short-term arangements, like a bank credit line, may be better.
If the business in question is your art gallery then I assume you get paid right away on sales, so receivables are not an issue, but high levels of inventory are. You can, I think, arrange inventory financing – this is what car dealers do – but I am not familiar with how this works.
Be wary on short-term arrangements. Theer are lots of seemingly attractive deals that, when you look at them closely, carry exorbitant interest charges.
Back to the poem: I like it, it’s very evocative. The hyphens add a nice sense of small, quick movements (but I’d’ve gotten rid of them in the third stanza, since the tension is gone at that point [unless I’ve misunderstood their purpose] ). I’d quibble with line 7 as well — the tense shift is clumsy, and the whole line seems forced. But I agree that the last two lines are very nice (although, I guess she was going for the internal rhyme with “toes”, but I’d think “feet” would be more appropriate — but of course she used that word in the first stanza. Ick, writing a poem is like trying to solve a Rubik’s cube).
Of course, it’s hard for me to relate to it entirely, since all my cats are separated from their feathered prey by screens and windows (and though their jaws twitch, I’m fairly sure they aren’t hungry, since they know where the more-accessible food is).
Thanks Blog and Bernard,
Guess I should have clarified. I’m working with a very good template for a writing a business plan, but it’s bouncing back and forth between advice for existing business and a start-up (which I’m working on). The question about the Income Statement (which is really a projection at this point) is really, what’s the most important message or conclusion to highlight about it (or in other words, what about it will be most likely to scare off potential investors).
I’d so much rather not have to wrap my head around these kinds of issues, but I’m glad I went through the process. In finalizing the final draft, however, I realize I have the Income Statement projections there (last page of document), but have essentially run out of things to say about it that don’t already appear in other strategy/estimates sections. I’m feeling really redundant and suspect if it’s got its own section, there must be a “right” conclusion to draw there and a “wrong” one.
I’ll look through that site you linked to Blog and see if they offer any insight my current template doesn’t.
Thanks again.
e
I blush at uncoupling your couplets, but this should be good news for anyone who respects law, order and national security. But I will not surprised by a repeat of this.
kenb: I actually like the toes part. I also love this because, in general, I love writing that gives me the exact words to describe a specific sort of moment/person/whatever that I’ve had a hard time describing precisely, and the last two lines do that for me. Plus, it cheers me up immensely, when I have those moments, to have these lines pop into my head, as they now do.
Cats are OK, but I’m in the market for a miter saw, and have been dying to hear what hilzoy got on her journey to the Republic of Sears.
Actually, I didn’t end up getting one, since they were more expensive than I had hoped. I plan a trip to Home Depot to check out the competition. (I went to Sears first because I was indoctrinated by one of my exes, who used to be a navy jet mechanic and loved tools within an inch of his life, and who swore by Craftsman.)
Anyone interested in reading an intro to the craft of poetry (i.e., anyone who reads or writes poems) should check out Nims’s Western Wind – even on a poet’s budget: it’s available used for practically postage (and I actually preferred the 2nd or 3rd editions if you stumble across them in a used bookstore). The book has charm, clear writing, no politics, pages of excerpted examples and little exercises, and a nice selection of poems.
I went to Sears first because I was indoctrinated by one of my exes, who used to be a navy jet mechanic and loved tools within an inch of his life, and who swore by Craftsman.
My brother is a journeyman carpenter, and I ask his advice on tools all the time. He says that unless you’re going to be using stuff for 8 hours a day every day, Craftsman is fine stuff.
Hilzoy, you may want to check when the new version of the saw is coming out. You get good prices on the old models just before their release, and usually the sales people will let you know.
Edward, were I to be looking to invest, I’d like your cash flow statement to conclude that you will earn enough to cover your expenses on a monthly basis (to avoid being evicted, being forced to change your voice on the phone to get suppliers to take your calls, serving store-bought, pre-ground coffee or, more importantly, coming back to me for more money) while your income statement should conclude that we’ll earn a profit at the end of the year.
Remember the three rules of finance:
1) Get The Cash
2) Get The Cash
.
.
.
3) Get The Cash
I’d like your cash flow statement to conclude that you will earn enough to cover your expenses on a monthly basis … while your income statement should conclude that we’ll earn a profit at the end of the year.
Thanks crionna…that helps.
So far, so good then.
I’m assuming the “profit at the end of the year” translates into more than just “ability to pay back loan on time” too, no? It ties into motivation, etc., which builds confidence in the lender?
The overarching message this Business Plan writing tutorial* seems to focus on is confidence building. And while the intial Income Statement looks good to me, I’m not sure whether it is confidence-building enough or should be spun somewhat. Personally, I feel any net income the first year is good, but my plan realistically estimates a year-end net profit which is about 15% of total operating costs (very small business). Having no idea how investors think, however, I’m not sure if they’ll think that’s good enough percentage or they’d expect that to be higher for the first year. (All this stuff is totally foreign to me.)
The tutorial—which is really well done IMO—is here, if anyone’s interested.
hilzoy: “… even if you assume that ‘of’ should be ‘off’.”
Tsk, tsk. Second-guessing Dickenson are we now hilzoy? ‘Tis bold & perilous.
My take is “Pussy, of the sand” connotes the flight-challenged nature of felines as opposed to the un-landbounded-ness of birds.
and when I say
I’m not sure whether it is confidence-building enough or should be spun somewhat
I don’t mean by fudging the numbers. I mean with some sort of text that explains why this is low (if it is) or high (if it is).
“of the sand” – I thought that might suggest cats’ association with Egypt and “hopes built upon sand”.
Note that “Hope is the thing with feathers”…
xanax — I may have second-guessed, but at least I spelled her name right :p
cummings said anyone who corrects your spelling (or maybe it was grammar?) will never truly kiss you. C’est la vie. My bad.
xanax: (x=hilzoy)((y=ten foot pole) then -(touch with (x, y))
hilzoy=killjoy
(oops…does that violate the posting rules?)
hilzoy=killjoy
(oops…does that violate the posting rules?)
xanax: you would have preferred one of the other witty ripostes that leapt to mind?
243 — IMO Hitachi is best in the lower price range unless you’re looking for compound. Watch for missing accessories on other models.
Any recommendations on a general tool set for unhandy people who may own a house someday? And general do-it-yourself books?
hilzoy: it’s your thread… riposte away.
then again, do i dare? and do i dare? (i shall walk along the beach rubbing peaches in my hair!)… till johns hopkins doctors clone us and we drown!
Edward, “Profit at the end of the year” is important to investors for obvious reasons (although I’d guess they are more easily placated with early looks at new works, the nobbing of artist hobs and Kona blend coffee even if year-end targets are missed) whereas banks look at your ability to earn a profit as the ability to pay them back in a timely fashion. In essence a profit at the end of the year is important to them only so far as it lowers the risk of you defaulting on the loan.
So, spin to the best of your ability!
Regarding the ratio, take your expected net profit and divide it by the equity. That’ll allow you (and investors) to compare invseting in the business against other investment opportunities. Taking the debt you’re asking for and dividing it by the equity gives you a useful ratio to determine how leveraged your business is, which is what your bank will look at closely to determine whether to give you the loan or not.
Any recommendations on a general tool set for unhandy people who may own a house someday? And general do-it-yourself books?
While generally not a corporate shill, I’m a junky for these kinds of books. I highly recommend any of the Home Depot brand books on home repairs, garden construction/landscaping, and painting. They’re available at the store, and the big orange home maintenance/repair/construction book is the best. The books rate projects according to skill level and difficulty, and has good lists of tools at the beginning of each section.
Now, while I own these, and would happily lend them to you for a few minutes if you lived in the Vancouver area, I can also suggest just occasionally reading them at the store if you don’t want to shell out the bucks for them.
Any recommendations on a general tool set for unhandy people…?
The basics for (prospective) homeowners:
1) Hand Tools – A set of 10 screwdrivers (5 Phillips head, 5 flat head), a set of 4 pairs of pliers including needle-nose, a good hammer (I love Estwing hammers… they last forever), a good hand saw, 2 high-end pairs of channel locks, 2 vice grips (1 larger, 1 smaller), a medium sized pipe wrench, a socket wrench set (w/ a combination of metric and standard sockets) and a couple of razor knives.
If you’re going to do any carpentry, you’ll eventually (if not sooner) need a mitre box and saw. A hand mitre saw is fine at first.
DON’T ECONOMIZE ON HAND TOOLS! Good ones that’ll last a long time are not that much more expensive than cheapies and they make everything you do easier and more efficient. Craftsman makes great hand tools and they warranty them for life. Buy high end hand tools.
2) Power Tools – I can do the vast majority of what needs doing with four basic power tools: a circular saw, a standard drill, a hammer-drill (for block or concrete) and an orbital sander. Optional here is an angle grinder (for cutting metal, should the need arise… infinitely more efficient than a hack saw).
Here you can economize a bit. Milwaukee makes about the best power tools on the market but you don’t need to go that high end. I’ve had great luck with Makita power tools and they make really reliable cordless versions which I recommend, except for the hammer drill. It draws a lot of juice and the rechargeable batteries just don’t hold up. So buy one with a plug. Also Home Depot carries Makita products and their warranty is pretty good.
Of course you’ll also need miscellaneous supplies (nails, screws, sandpaper, a set of drill bits (don’t economize on drill bits – you’ll be glad you didn’t – especially masonry bits) and the like, but these can be purchased as needed.
Hope that helps.
Any recommendations on a general tool set for unhandy people…?
The basics for (prospective) homeowners:
1) Hand Tools – A set of 10 screwdrivers (5 Phillips head, 5 flat head), a set of 4 pairs of pliers including needle-nose, a good hammer (I love Estwing hammers… they last forever), a good hand saw, 2 high-end pairs of channel locks, 2 vice grips (1 larger, 1 smaller), a medium sized pipe wrench, a socket wrench set (w/ a combination of metric and standard sockets) and a couple of razor knives.
If you’re going to do any carpentry, you’ll eventually (if not sooner) need a mitre box and saw. A hand mitre saw is fine at first.
DON’T ECONOMIZE ON HAND TOOLS! Good ones that’ll last a long time are not that much more expensive than cheapies and they make everything you do easier and more efficient. Craftsman makes great hand tools and they warranty them for life. Buy high end hand tools.
2) Power Tools – I can do the vast majority of what needs doing with four basic power tools: a circular saw, a standard drill, a hammer-drill (for block or concrete) and an orbital sander. Optional here is an angle grinder (for cutting metal, should the need arise… infinitely more efficient than a hack saw).
Here you can economize a bit. Milwaukee makes about the best power tools on the market but you don’t need to go that high end. I’ve had great luck with Makita power tools and they make really reliable cordless versions which I recommend, except for the hammer drill. It draws a lot of juice and the rechargeable batteries just don’t hold up. So buy one with a plug. Also Home Depot carries Makita products and their warranty is pretty good.
Of course you’ll also need miscellaneous supplies (nails, screws, sandpaper, a set of drill bits (don’t economize on drill bits – you’ll be glad you didn’t – especially masonry bits) and the like, but these can be purchased as needed.
Hope that helps.
Any recommendations on a general tool set
1. screwdrivers (small and larger, flat and phillips)
2. cordless drill/screwdriver (great for making pilot holes for things like plastic wall anchors to hang heavy things)
3. hammer (for putting nails, and plastic wall anchors, into things)
4. can of spackle (for patching holes in walls)
5. some sandpaper (for sanding that spackle when it’s dry)
7. box of picture-hanging nails (with the little clips)
8. can of white interior medium-gloss latex (aka – the color of moulding)
9. a little step-stool. (metal, folding)
10. metric / standard socket set
11. pliers
12. beer
that gets me through 90% of all my interior chores.
Good list cleek… I totally forgot the beer.
Oh yeah, and ice, band aids and aspirin.
Those little folding workbenchs are invaluable, as well as a few quick release clamps for holding stuff down. Nothing worse than cutting a bouncing sheet of plywood on kitchen chairs. Especially if you cut through part of the chair.
Now, if anyone wants the inventory of a really good first aid kit…
Edward,
A few points. As Crionna says, cash flow is crucial. A friend claims the First Law of Business is “Don’t run out of money.” I agree.
In part the answer to your questions depends on what kind of investor you are seeking. A lender will be primarily concerned with your ability to repay. Big upside potential isn’t goingto be that important. An equity investor will want to see that you either will be able to pay dividends or, much more likely, have an “exit strategy.” (Yes, I know – but this sort of thing is where the term originated). In other words, how does the equity investor get money back out?
For the lender, it is worth showing and EBIT number, (That’s Earning Before Interest and Taxes) or EBIDTA (throw Depreciation and Amortization in). This gives a picture of how much cash will be available to meet debt payments.
The ratio of profits to sales is not all that useful, in my opinion. Looking at profits to equity, as Crionna suggests, is fine. That’s your P/E ratio, after all. But remember that if the investor owns, say, 30%, to only count 30%. Ultimately much of what you emphasize depends on what the investor is after, which may well include some of the nonfinancial item Crionna mentioned.
What is critical is to be able to back up your numbers with sound reasoning. If you think sales will be X, then have a good reason. If you need to hire three people, explain what they will do, etc. It is far better to present a conservative well-supported plan than an over-optimistic one that you can not back up. Be as optimistic as you can justify, but no more.
I’ve had a Makita cordless drill/driver for quiet a while and it’s seen some use. It’s a 12 volt and if I were buying today I would get a 14.4 at least, but I can recommend the brand based on my experience.
One useful inexpensive item is a screw extractor. Great for taking out screws when the head is stripped.
If you plan on any renovation, even of the minor variety, a good pry-bar is very handy for leverage.
A vice, too, to hold stuff still while you mangle it.
Work gloves.
Rilkefan: It’s too bad because I could have given you my tools from John Thullen’s garage, but I decided to turn over yet another new leaf, so they went in a garage sale the other day. Evidence disposal.
I’m thinking of putting in a hot tub, a ping pong table, and a wet bar. 😉
JT: Start with the wet bar. It might save you step 2 & 3.
JT: Start with the wet bar. It might save you step 2 & 3.
OK, here’s a question for all you handy people: I have a porch, and I would like to hang a swinging chair from the ceiling. But the ceiling is a sort of finished wood, and doesn’t show where a joist might be; nor is it clear whether any joists that there are wood or metal. (Elsewhere in the house, they’re metal, but the porch seems to have been added later.) So I suppose I will end up cutting out part of the wood ceiling, putting something into the joist to hang the swing from, and replacing the bit of ceiling somehow. But how do you find out where the joist is without cutting the ceiling all to pieces looking for it? And how do you drill a big hole in a metal joist? (I am assuming that my little power drill won’t do the trick.)
hilzoy But the ceiling is a sort of finished wood, and doesn’t show where a joist might be…
1. try a stud finder
2. tap on the ceiling with a hammer, it should sound different where there is a joist
3. look at the board that covers the end of the roof, between the ceiling and the roof and see if you can tell where this is fastened. It may be obscured by a gutter.
4. Use a small drill bit (1/8″) and drill a series of holes about 1″ apart until you hit a joist, and you should be able to then tell if its metal or wood, and also whether your drill can handle it. You might want to start drilling about 16″ from one end of the porch if you need to guess where to start. The joists will most likely be either 16 or 24″ apart.
5. If you can tell where the floor joists for the porch try directly above them
thats all my ideas, but good luck.
hilzoy:
1) do you own or are you renting?
2) is your porch overhang onesided or wraparound?
3) how much does the swing weigh?
xanax: own (my second house, yet); one-sided (actually, two of its sides are the brick walls of the house); I don’t know, but not that much; I’m thinking maybe a sort of hammock chair, though with a wood frame. Then there’s me, of course.
To the rest of you: xanax has the amazing ability to set tile right by sight, without spacers. Be awed.
hilzoy,
Stud finders don’t work. Period. Try 243’s #4.
As for xanax, I am duly awed. I can’t even do it with spacers.
Um, stud finders work great. Unless you’re talking about the magnetic ones, they suck. I use my electronic one all the time, and it’s never failed me. Then again, we hav wooden studs, and I don’t know how well the electronic ones work with metal studs.
hilzoy:
Your wood porch ceiling is almost certainly attached to the joists by screws. Before investing in a stud finder (which I find sort of hard to use and somewhat unreliable…plus you may never use it again) look closely at the ceiling and see if you can find a screw head (one of about 1,000 holding up the ceiling). If the ceiling wood’s got a natural finish the screws should be relatively easy to find. If it’s painted, you might need to sand or scrape off a little paint to find a screw. Once you find one, look 16 inches to the right or left of it and see if you can find another (typical roof joists are 16 inches apart on center but could be 18″ or even 24″). In this manner, locate the two joists you plan to use to hang the swing.
Now, once you’ve located a screw, back it out (unscrew it) and see if it’s a wood screw or a sheet metal screw. If it’s a wood screw, your joists are wood and your job is relatively easy. Pick up a couple of heavy-duty (5/8″ minimum) I-hooks or J-hooks (depending on what kind of hangars are on the swing) at the hardware store along with a 5/16″ drill bit. Drill pilot holes where you want to set the hooks and screw your hooks in. Tip: slide a long screwdriver thru the hooks and use it as a “lever bar” when the screwing gets tough (no snide remarks please).
If, on the other hand, you find sheet metal screws holding up the ceiling, your joists are almost certainly metal and I’d strongly advise calling an experienced handyperson to set your swing hooks. Metal studs are designed to bear lots of weight across long horizontal spans but not for anchoring single points that will be bearing a lot of weight (depending on the size and thickness of the metal joists, it may even be necessary to go all the way through the porch roof itself to get a solid anchor). There are enough variables with metal studs that, unless you truly don’t mind the possibility of winding up on your heinie, it becomes more risky than it’s worth to try to do it yourself. Nothing to be ashamed of. I’d probably do the same. And it’s probably not worth tearing your ceiling apart to figure it out and then trying to repair it.
Just my thoughts. As always, I could be wrong.
Good luck.
hilzoy:
Your wood porch ceiling is almost certainly attached to the joists by screws. Before investing in a stud finder (which I find sort of hard to use and somewhat unreliable…plus you may never use it again) look closely at the ceiling and see if you can find a screw head (one of about 1,000 holding up the ceiling). If the ceiling wood’s got a natural finish the screws should be relatively easy to find. If it’s painted, you might need to sand or scrape off a little paint to find a screw. Once you find one, look 16 inches to the right or left of it and see if you can find another (typical roof joists are 16 inches apart on center but could be 18″ or even 24″). In this manner, locate the two joists you plan to use to hang the swing.
Now, once you’ve located a screw, back it out (unscrew it) and see if it’s a wood screw or a sheet metal screw. If it’s a wood screw, your joists are wood and your job is relatively easy. Pick up a couple of heavy-duty (5/8″ minimum) I-hooks or J-hooks (depending on what kind of hangars are on the swing) at the hardware store along with a 5/16″ drill bit. Drill pilot holes where you want to set the hooks and screw your hooks in. Tip: slide a long screwdriver thru the hooks and use it as a “lever bar” when the screwing gets tough (no snide remarks please).
If, on the other hand, you find sheet metal screws holding up the ceiling, your joists are almost certainly metal and I’d strongly advise calling an experienced handyperson to set your swing hooks. Metal studs are designed to bear lots of weight across long horizontal spans but not for anchoring single points that will be bearing a lot of weight (depending on the size and thickness of the metal joists, it may even be necessary to go all the way through the porch roof itself to get a solid anchor). There are enough variables with metal studs that, unless you truly don’t mind the possibility of winding up on your heinie, it becomes more risky than it’s worth to try to do it yourself. Nothing to be ashamed of. I’d probably do the same. And it’s probably not worth tearing your ceiling apart to figure it out and then trying to repair it.
Just my thoughts. As always, I could be wrong.
Good luck.
I just don’t get this perpetual double posting. AAAAAAARRRRRRGGGGGHHHHH!
(sorry neighbors)
Thanks thanks xanax xanax 🙂 I hadn’t thought about the not-designed-to-bear-weight-at-a-single-point aspect, and I’m glad you did.
xanax I just don’t get this perpetual double posting.
Perhaps its your curse for being able to set tiles right. 😉
And what you said about messing with the metal joists.
tomsyl Non-compound miter saws are getting hard to find — the Hitachi has been discontinued, although there is a similarly priced Makita. I’m thinking of getting a non-sliding compound, for the smaller footprint and lesser cost, but I’ve gone 15 years without the ability to compound cuts on a miter box and I haven’t missed it much.
rilkefan Basic tools are going to vary a lot depending on what sort of housework you are going to do.
If you want to do trim and finish work I’d recommend a power miter box (with a good blade) over a hand one because you get better cuts, and if you cut the piece 1/16″ too long you can essentially shave the rest off which is darn hard with a hand saw.
I’d get a reciprocating (jig) saw. Get one with an orbital action. The larger variety (sawzall) are really useful for demolition and remodel sort of stuff.
And what everybody else said – a good cordless drill with an extra battery.
Here in Japan, there’s no space to set up a workshop *sigh*
is absolutely precise in its description of a cat
Lovely, but the perfect description would have to include how the cat will walk away, secure in the knowledge that the bird would not have tasted so good anyway…
Bernard and crionna
Thank you both so much…I’m gonna re-read your advice before I meet with the potential lender tomorrow. The business plan is done…it looks great to me…and I hope I never have to go through such a painful process again.
😉
Anytime E. Good Luck!
RE: Tools. I’m partial to a nice set of ratcheting box end wrenches. Also, Snap-On’s consumer division makes a ratcheting screwdriver that’s great too. Finally, no toolbox is complete without needle nose or electrician’s (to crimp, cut and strip wire) pliers.
And about that toolbox. Get one with a tray on top (under the lid) and then 2-3 drawers. You won’t be able to dump as much in, but you’ll be able to get to stuff easier. Plus, there’s no need to take it off the shelf to get at your stuff.
Curious how the privatization advocates here think about the issue of using the finite accounts with an uncertain lifespan.
“It just fell through the cracks.”
From the sworn testimony of the assistant to California Secretary of State Kevin Shelley, who is being investigated for mishandling $81 million in federal funds earmarked for voter registration, voting machines &c. in the Bear State. (Shelley himself dodged the hearing, and will be subpoenaed the next time around.) Could this be part of the VRWC’s voter disenfranchisement scheme?
Well, Shelley is a Democrat . . .
oh the days when cats were literate…
If you need a new battery, I suggest you could purchase one from http://www.batteryfast.com , which would shipping to you fast and the quality is satisfy satisfied.:)