With tax deadline creeping up
on us I thought I’d share some basic wisdom that real business owners
understand but would be beyond the grasp of a brainwashed Amway Ambot.
It’s a simple equation:
PROFIT = INCOME – EXPENSES
Get it people?
Say you’re a real business owner and your expenses for a month might run the
gamut of various things, some are constant others occasional. Let’s say you
only use your accountant at tax time. That would be an expense that hits one
month but not always the other 11 months. Or the expense could vary, say you
only have the accountant do occasional work throughout the year, but the
granddaddy of it all happens once a year. Other occasional expenses might be
renewing a business license or insurance or buying office supplies. Depending
on your business regular monthly expenses might include things like payroll if
you have employees, rent or mortgage on the place you conduct business, stock
to be purchased, telephone, Internet, bank fees, car maintenance, meals,
electric, and advertising.
Your income might vary too, depends on the product or service being sold, and
if some months are slower than others.
Let’s work in round numbers so it’s easy for me.
Let’s say the real business owner’s income for a month is $15,000.
The expenses for that month are $11,000.
$15,000 (income) minus $11,000 (expenses) = $4,000 (profit).
Easy enough except in the real world we’d be dealing with random dollars and
cents because nothing ever rounds up nicely.
Now let’s take a pretend business owner like an Amway Ambot.
$10 (income aka rebate on buying at least 100PV of shitty overpriced Amway
products) minus $700 (expenses like buying at least $300 in Amway products,
investing in the Amway tool scam – spending money on tickets and costs to get
to Amway cult meetings) = $690 (profit).
Oops fuck! Forgot to put a minus in there. Make that -$690 loss.
Yup that’s right. LOSS!
As in a profit and loss statement where real business owners log and track.
$690 in the red!
Loss!
Let’s say the real business owner has some ups and downs in the year but his or
her net annual profit is $50,000, so that’s sticking pretty close to the $4,000
monthly profit times 12 months.
Yup that’s profit. Well you know sort of. Uncle Sam wants his share and the
business owner has the kinds of bills that most working people have.
Let’s get back to brainwashed Amway Ambot running a pretend business.
-$690 x 12 months = -$8,280 in annual losses.
And that’s being generous. Many Amway Ambots lose more money than that in a
year.
When a real business owner looks at their profit and loss statement and sees
they’re in the red every month they know that’s not a sustainable business. The
choices are to make changes to their business plan or cut their losses and
close shop.
An Amway Ambot is not allowed to keep a profit and loss statement. That’s
forbidden by the Amway cult leaders because if the Ambot kept a P&L they’d
see how much money they’re losing. A good Amway cult leader must keep the Ambot
distracted to realize they’re being sucked dry tithing the Great Amway God.
Business owners know they must keep a P&L and monitor their income and
expenses. It’s called keeping your books in order cause you’ll need this info
at tax time and in case of an audit.
Let’s say it again:
PROFIT = INCOME – EXPENSES
It’s a simple mathematical equation.
Though depending on the volume of income and expenses it might not be “simple”
for the person keeping track of it!
PROFIT = INCOME – EXPENSES
The above simple mathematical equation is dangerous to Amway cult leaders and
must never be divulged to the Ambots.