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> I get that he's just starting He says he's been doing this for 5 years.

• josefresco 8y ago
  My bad, I got the impression he was just starting. Thanks for the clarification. Not sure how in 5 years he still thinks he has almost no overhead - maybe on relative terms? He claims to make "6 figures" which was similar top line income to what my father generated.
  • CompelTechnic 8y ago
    It may be that he thinks of overhead as fixed costs (as opposed to variable costs). If you have very low fixed costs, your business can scale up and down on a whim, without terrible consequences.
    • josefresco 8y ago
      Good point. My father operated the business out of his home, the most expensive thing he "needed" was a heated garage which prevented his machine/lines from freezing. Before this, he used space heaters inside his van. Machine maintenance was his largest cost, and because he had to perform most repairs himself (due to financial restraints), it kept him up at night. When he started the business again after we moved, he saved enough to buy a new truck/machine which helped ease him mind. However a machine you use everyday stops being "new" rather quickly.
    • klank 8y ago
      Or his profit margin is large enough he's never needed to actually consider his costs. If that's the case, I'm guessing he learns a thing or two if he ever expands to the point where his margin gets compressed enough to need to be managed.