Why isn’t the craftsman a good candidate for overseeing/maintaining the machine and/or overseeing unskilled labor? If he becomes skilled in that regard, you will have to pay well enough to retain his services.
It is stupid too throw good, reliable people away especially in manufacturing.
Agree that I have no idea how this person is calculating their loss at 100k over their revenue. However, generally as in GAAP, you would recognize revenue on shipment or when a service is rendered because that would be the period in which the revenue was accrued. For example, most companies that sell on terms like NET 30 will invoice AND recognize revenue on shipment; they would not wait until payment is received on the invoice. That is why there are [contra asset]/expense accounts relating to bad debt.
Waiting until funds hit your bank account is cash basis accounting and even in that case, I am not sure how having a third party like Stripe holding the money affects things.
Yes, you can do this. But in the case of the OP recognizing the revenue prior to receiving the payment makes them liable for the taxes on that revenue and that probably isn't a very clever thing to do.
If you're accrual basis like most companies _in the U.S._, you would be obligated to do this and not recognizing would be a finding on an audit. If not, at the end of the year, companies could ship goods out reducing assets, book the corresponding cost of goods sold, and not recognize revenue until the following year.
Branding is a bit of a moat that puts you ahead of other competitors. Literal true story but perhaps a counter example: my wife is considering buying an exercise bike and is trying to choose between Peloton and Beachbody. Everyone online seems to be suggesting she buy the Peloton. She is a little torn, because she already has done non-bike exercises on Beachbody for several years. Peloton has the leg up for the bike, because it has the best branding in that area; however, my wife was at least willing to consider Beachbody, because of her previous experience with their brand.
This could very well be used for that IMHO. Other uses could be recruiting platforms, online shops, etc. It's not yet a mature project, but in theory, it can be used for anything that needs user data of any kind.
I do get their point from two perspectives:
- in my own schooling, I anecdotally heard non-accelerated courses were worthless. Edit: even for the same course - Algebra had a different teacher for accelerated vs non.
- Finland achieved its high global rank by pursuing equity first. However, not sure of the international rankings anymore.
