Business Expenses $15MM to $7MM-Post #272160
Because, once again, you're addressing an entity with almost 2 dozen other matters in progress, but utilizing an assumption your addressing one set of fixed locations, and no other matters in progress.
Perhaps you believe hiring and training should begin after locations are open? Perhaps you believe locations commencing operations should not as that will cost quite a bit until revenue's?
Or perhaps you would like to discuss your experiences from conception through launch in which $5-$30MM is spent before dollar 1 comes in, as is the norm in the industry and it's operations.
Let's have 60 seconds of fun (and not worthy of more, truly)
Fremont staff (30?), San Leandro staff (20?), 30k staff (40?), 15k staff (20?), Dyer staff (50?).....
160 people who have to be paid without generating dollar 1.
Maybe more, maybe less (people). 30k a year (most likely a higher average). Let's use 40k. 30k=4.8MM, 40k=6.4 million
Didn't even touch accounting, legal, design, furnishings, MEP/build out's, utilities and 100 other expenses...
Many non deductible, without the most basic business banking services.
I do understand (truly) you're addressing matters which you have no direct experience, or even any degree of familiarity. (You can't state you do, because your continually overlooking the above......)
Every endeavor undertaken carries, most of the time, enormous cost to produce.....whether one is opening a Subway, or a 30,000 sq. ft. cultivation and manufacturing, with a dispensary on premises, and a designated production and bottling facility.
I'm sorry to break it to people, but spending $15MM to generate $7MM when a continuous pipeline, for a company not too long ago making 7% of that annually isn't too bad....
It's quite common for companies to spend up to $30MM to generate $0...(prior to commencement of operations), as it is also a common as of late for companies to pay $26MM-$58MM for little more than a license, or a non operational site with a mid 7 figure annual leases, who are deemed market favorites..
There you have it. Truly the "basics" and not worthy of being addressed more than 50 times.
It's too personal to be business.
