Myself.

And we add back the interest, at least in this example, we get to an operating profit number.

So let's take a look at a direct sales example.

For sales, what that meant is unless the VP of Sales was the founder you tended to hire them around the time engineering were saying, We're in alpha and beta test.

I prefer to work on my own.

As of now... myself.

Listen, we're not going to have sales marketing and bus dev on day 1.

But in general if you take EBlT and you take out the non operating income, you get back to operating profits.

For direct sales though, this is the anomaly.

Business as usual.

You get to create demand by having a launch event and you think about branding and your job really was to create end user demand and derive it into the potential sales channel.

He did the work on his own.

So this ends up to be an interesting calculation.

And most of the time you find out, Oops, I really didn't quite understand what those customers were saying.

I talked with our sales people.

Again, it decreases your customer acquisition cost.

Thus The Pirate Bay isn't idealistic.

And these metrics will tell you that.

Scott is an entrepreneur with much spirit of enterprise.

Try running a 40 billion industry.See how that makes you feel.

The next thing you need to ask is what's going to be my distribution channel.

But now, over this period of time, over 2008, 2008 happens.

But this is the difference between operating income and EBlT.

Now the last interesting thing that's a holdover from thinking about startups as smaller versions of large companies is kind of the hardest to get your height around.

And the way we saw that is that, their everything, their revenue, gross profit all the way down to their operating profit was exactly the same.

And that goes here, under Capital Expenditures.

I'm a salesman.

I am a member of the sales department.

So now we add an interesting line.

We decided to infiltrate some companies and do a very similar thing.

(Laughter)

For a business owner, having a clear overview of one's entire business is vital.

We could actually do without the employee.

Is it open round the clock?

And that's because they have the same exact asset.

And let's say, assume if I inherited this million dollars, I didn't finance it.

I'm talking about all companies.

Open 24 hours.

The video shop is open until 3 o'clock.

Then whatever this generates is actually non operating income.

Also those receiving very low pension rates, those with precarious employment and the self employed, who work themselves into poverty.

I'm in sales... for a small clothing manufacturer

And then you had another 1 million of assets of this 10 million.

And I know a little bit about these issues, because, for many years, I spent a long time in the non profit industrial complex, and I'm a recovering executive director, two years clean.

So in any of these periods, the depreciation expense should be added back to the operating profit, to figure out the cash from operations.