Hacker News new | ask | show | jobs
by motohagiography 1646 days ago
A Pareto distribution. It's a lot of cash for someone who works for a salary, but as capital that generates income it's less than a lot of franchise fees and unencumbered capital requirements. e.g. to start a Krispy Kreme donut shop, you'd need about $1.5m in cash. You can buy into smaller franchises for much less, with 2-3x leverage, you might be able to do a Starbucks. Myself included, it's important to feel a bit of humility when sitting in someones starbucks location with a laptop while pontificating about entreprenurship.
1 comments
pedrosorio 1646 days ago
> you're on the second bottom rung of a very tall ladder

> A Pareto distribution

I'm not following. Pareto distributions don't have "rungs". Who defines the rungs of the ladder? Why is $600k the second bottom rung?

link
motohagiography 1646 days ago
They do not. I'm trying to find a simile that will facilitate the perspective that the size of the number and the goal of making a living from it is more meaningful when you compare it against the amount of capital that people typically use to make a living from investments.

For concrete thinkers: people who live off investments usually need more than $600k, so the question is how to use that money to grow it into an amount similar to what said people live off.

link