miércoles, 16 de julio de 2014

Let's talk about costs

Let's talk about costs
When an entrepreneur launches initiative or property whatsoever, the costs far outweigh the initial forecasts, so that he must make an accurate assessment or otherwise, he may find the first great difficulty surviving, entangled in the maze of slippage. It is always important to talk about costs when establishing the basis for a business. It is the foundation that will describe the most reasonable way to go.

However, the costs must not only be under control at first, but throughout the process of developing the proposal. Therefore, it is important to know what we mean when talking about costs, and some of the areas include:

Training costs is an expense that the employer must undertake to recoup their investment, because they never have the ability to draw conclusions from the consumers themselves, so to exploit the momentum of the sale, he must have the right tools, and equip workers proper training will contribute to bringing the company to its mass of customers.

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Costs of market analysis is one of the factors that determine whether a business will continue, it will stagnate, or otherwise fail. Because entering the market without conducting a preliminary study is to risk the success of the idea. This cost should not necessarily translate into financial outlay, since it can make the entrepreneur himself, but in terms of time, effort, analysis, etc., actions that have an invisible price.

Control costs in managing the business. It may be negligible if the employer has the ability to control all movements of the company; otherwise, it is an escape resource. However, the will to evolve naturally entails investing in equipment capable of ensuring stability. Cost control and profit should be in the right hands or else all the effort will be useless, because the benefits are gradually leak, weakening the ability of the enterprise.

Costs motion correction is to do the employer to recover the path of smooth operation and efficiency. This area is sometimes costs soar, especially if it has not taken into account the market preference and has been raised with an incompatible product demand. In this case, not to die, a transformation of the offer will be required to establish a reasonable rate of profit.

Implementation costs are vital to achieve the monitoring exercise. When trying to reduce costs and if you choose to reduce the cost of production, either using hands of less skilled work, or simplifying the process. However, impoverishes the final product, and the result determines the continuation or not of the brand at the top of customer preferences. Therefore, this is a move that should never be discarded. 

Finally, it should be emphasized that not all costs are sunk, but necessary expenses. Investing to improve the performance is an effective way to ensure the return on investment and regain lost ground, because I despise it will not only lead to the mass of customers decreases, but the product is gradually disappearing from the market, unable to provide the quality that is assumed.
image: @morguefile

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