Getting to Plan B

CHAPTER 4

Avoiding Rocks and Hard Places

Your Gross Margin Model

WHEN WE LEFT JOHNNY in chapter 3, he was celebrating the revenue from his first week in business: $18.75. He had his mind set on purchasing a video game for $17.50. But as he touted his financial success to his mother over dinner, she interrupted. Of course, she was very proud of Johnny’s success. But she said something to the effect of, “Johnny, I don’t want to knock you off of your high horse, but you don’t really have $18.75 to spend. You owe me money for the lemons, sugar, cups, and for the gas-money I spent driving to the grocery store.” His face fell. She continued, “Don’t ...