Originally Posted by MaciekA
Brian, I really appreciate you taking the time to share this model with us. This definitely puts it in perspective. Some questions would be:
1) To what degree can the cost of the real estate be brought down, and how?
2) Do you think US AS-only fields are starting from a money-losing operation and then gradually trying to recover using various other sources of revenue (retail in particular), or do you think they're benefiting from very cheap land? I guess I'm wondering to what degree the field mentioned by the original poster is potentially benefiting from very cheap space.
Most businesses fail within 2 years, due to a flawed model, or under capitalization.
When you start any business you should have sufficient cash reserves that you can run the business with ZERO income for 2 years ..
For the model I presented to be safe , you should start that project with half a million dollars in the bank CASH not credit
and you just may survive long enough to get to a positive cash flow.
Most businesses fail because they finance the start up and expect a positive cash flow on opening .. this really does not happen ..
.. So if there is someone with half a million sitting around , and they don't mind waiting a decade to get it back.. I'm ready to start tomorrow.