What would happen if doubled your business every month?

[Dan.Linehan]

It would look something like this:

Jan $100
Feb $200
Mar $400
Apr $800
May $1,600
Jun $3,200
Jul $6,400
Aug $12,800
Sep $25,600
Oct $51,200
Nov $102,400
Dec $204,800

Total $409,500

[n_vizion]

If only things really worked that way.....

[1000feet]

At first you would make a lot of money. Then you would become famous (being really legendary would probably require that you repeat it several times to show it's not luck). Then you would become a mathematical impossibility as the amount of money in the world couldn't expand fast enough to accomodate your business :P

[ChrisRamsey]

Originally Posted by 1000feet

Then you would become a mathematical impossibility as the amount of money in the world couldn't expand fast enough to accomodate your business :P

Haha, why can't it? Isn't our Universe abundant?

[Angela]

Well, that would be your income. What if you doubled the value you produce every month? Or the number of people who benefit from it?

[ChrisRamsey]

I like reading your posts Angela. You have some great ideas.

[Angela]

Thank you, Chris.

[jeff3]

This is an old math problem. If your new job gave you the option of being paid 1 million dollars up front for a months work ,or, start with 1 cent a day on the first day and double it every day for 1 month , which would you opt for ? Most take the million. here is the solution: Cynthia Lanius' Lesson: A Mathematics Fantasy

[Dan.Linehan]

Originally Posted by Angela

Well, that would be your income. What if you doubled the value you produce every month? Or the number of people who benefit from it?

If you did that you'd incur a huge positive social debt, which would result in a correspondingly higher income anyway.

[Angela]

Originally Posted by Dan.Linehan

If you did that you'd incur a huge positive social debt, which would result in a correspondingly higher income anyway.

Yeah, maybe. It's a whole 'nuther approach, though, isn't it.

[Gene]

Originally Posted by Dan.Linehan

It would look something like this:

Jan $100
Feb $200
Mar $400
Apr $800
May $1,600
Jun $3,200
Jul $6,400
Aug $12,800
Sep $25,600
Oct $51,200
Nov $102,400
Dec $204,800

Total $409,500

When I was in the Army earning the princly sum of $88 before deductions I was once begged and pleaded with to loan one of my fellows .02 cents so he would have enough money to buy a soft drink. He said he would pay it back. Being short of funds myself, the .02 cents was a sizable portion of my cash at that moment I was less than eager to make the loan though I knew he would repay me, he was a good guy.

I said I would make the loan on the condition that for every day the debt went unpaid the amount owed would double. Payday was only a few days away and I thought this would discourage him from taking the money.

I was wrong, he accepted the money did not pay me on payday and on the payday thirty days latter remembered the debt and asked how much he owed me. I went over the terms of the contract and then sat down with pen and paper to do the math.

At some point in the calculations he started to be a little nervous. We had an audience and our mates were telling him how terrible it was going to be for him. I don't remember the exact figure but remember the bill came to substantially more than one million dollars.

He almost collapsed from the intensity of the sum. I said we could call it even if he gave me the .02 cents back and did not ask to borrow again. He agreed and we were both happy and some of us were entertained.

I think you have about as much chance of doubling your revenues every month indefinitely as I had of collecting the principal and interest from my friend. I would be willing to invest a dollar with you now if you think the returns on the money will double every month!<Grin>