Wednesday, October 21, 2009

What do you do with the money your RPG Business generates?

No one really asks this question because …well I don’t know why but let me tell you what I do with the money my RPG Business generates: I use my money to make me more money. What often happens in new RPG companies is they use the money to buy silly things like a McDonalds Happy Meal or a pack of gum. But when you have been at this for a while, you should think long term about what to do with your money. I have a motto at LPJ Design that I got from the rapper Jay-Z: If it doesn't' make dollars, it doesn't make sense. Fans of the American TV show Shark Tank  know this is very much the same personal motto of Kevin O’Leary. It is very simple. As a RPG Publisher you need to follow that also.

Cashflow is the life blood of what we do in business. If you spend your cashflow on things that don’t help generate more cashflow, it might dry up when you most need it. Like in the middle of a global recession. You should only spend your money after you have answered the following two questions:

  • Will spending this money help grow my company’s sale?
  • How long and how many sales will I need take to get back the money I am about to spend?
If it does not help grow your company, then don’t do it. Buying the Adobe Creative Suite is a good idea, only if you are going to learn the program to help save you money by doing the layout work yourself. Don’t get it just to get it if you don’t plan to learn how to use it. Hire a professional layout person to do the work for you and it will save you money in the long term plus help you increase your cashflow. Don’t spend your hard earned money on silly things. Making money is tough, hard work and you should not waste it. Remember, it doesn't' make dollars, it doesn't make sense. Learn it, love it and live it. Talk to you later…