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Re: [nafex] Re: NAFEX Handbook

Over the years of explaining business practices to students, I have
found that the accounting practice of placing revenues above expenses on
an accounting statement misleads many students who lack a full
understanding of potential risks factors, cash flow, and break-even

There are costs associated with collecting, verifying, editing, and
proofing articles for either printed or electronic media. These are paid
prior to any revenues being collected unless the author has a contract
with a stipulated cash advance.

There are mechanical setup costs for page layout, design, and artwork
for either print or electronic media. The publisher must pay for these
expenses in advance of advertising discounted advance (pre publication)

Print and electronic media have basic fees to start the process (a
minimum order of CDs or a minimum press run). After the initial number
ordered, it costs much less to run off additional copies. Students
frequently will base their business decisions on the reduced cost per
item by increasing the number of items ordered. The problem is that
unless the business plan suggests that the extra volume can be quickly
converted into cash, the profit may tied up in unsold inventory that
costs money to store and may actually become outdated so the asset value
quickly decreases. Don't forget there is a cost of borrowing money that
must be considered otherwise it is wiser to leave the money in an
interest bearing investment account.

The questions the NAFEX board must consider are numerous and their first
objective is to not jeopardize the focus of the primary goals and
objectives of the organization. Members pay their dues expecting 4
quarterly issues of POMONA and holding of the annual meeting/conference.

What is the audience for the handbook - beginners, novices, experts?

What topics would the handbook contain?

What format would the handbook take - 3 ring binder, magazine 8-11
inches, etc.?

Would the handbook be sold only to NAFEX members?

Would the enterprise be a fund raiser vs a non-profit membership benefit
designed only to recover publication costs?

It is possible to support the concept, but reject the idea because of
the potential risks, costs, and the lack of a team to undertake the
project in a timely fashion.

This is my opinion and along with $4 you can get a cup of coffee at

Have a happy and safe holiday season.

Claude Sweet
San Diego, CA

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