Understand opportunity costs

The opportunity cost is a term used in business will be to explain that for every decision in the company (or person) has both an opportunity and a convenient way that these assigned. If you have never been exposed to the opportunity cost of doing before they do a lot of sense, so I will summarize the concept in simple terms so you understand this important issue.

Let's say you just can chicken or burgers for dinner, but not both. The opportunityChicken cost him the chance to have the burger. And if you decide that the burgers that cost him the chance to chicken. The opportunity cost analogy may take any decision which may be used at any time in our lives. When you wake in the morning, you can choose to either wear slippers or shoes, but not. Versa if you choose shoes that cost him the truck to take the chance and sneakers. Think about it a bit, and you will see thatDecisions on how time and if you spend much time on a task that will cost you time to get to the next task and so on are valid. The opportunity cost of staying awake for a chance to sleep. The opportunity to be the cost for the opportunity to be married once. You get the idea. The key is to understand the enormity of this concept in everyday life and, not least how to spend time at work or in business.

You are unemployed, employed, independent, aTrader or investor. And in any case, there is the possibility and costs associated. You can use the opportunities and costs?

I am a big believer in education and have knowledge about a topic before jumping into any project. They are impulsive as I have rarely found that the consequences of impulsive acts, which are generally more expensive than the ability to be impulsive, have and this is especially true in business. In other words, the possibility of beingmy impulsive spending can be controlled and monitored. However, the ability to control costs to be given the opportunity to be impulsive. I choose the impulse control, because the likely result tends to be positive and not negative.

I come from a poor family in Detroit, Michigan, and I was pretty ignorant before starting his own company 20 years ago. I met a man named Doug Wright, a lawyer for the trade in Toledo, Ohio. He was a professional, smooth and welltalked to articulate, tall and charismatic man who sent me the whole environment, customs, by contrast, was only 25, ignorant, naive, arrogant and a wet behind the ears know it all. Doug saw something in my personality, inspired him to mentor me and was the best thing that ever happened. Doug was able to show how gracefully I did not like his great knowledge and experience against. And as the competitive position of person I am, I went to the libraryand pulled the books of business marketing, sales, management, philosophy, etc. I had a more level playing field with Doug, the titles that come to Ying Yang to get. I just intelligent, but I did not have a degree to compete with Doug. So I spent thousands of dollars to get a degree in economics. And I have a real estate license. And I was a commercial mortgage broker. And I have written books that have been national. And get many achievements that few people have the opportunity.All services have been achieved, as for how the world works, what makes a company a success, while others do not. But the possibility of this exercise has cost me a lot of time and money. Doug is the last year and I lost a good friend.

But from a poor environment and "thought I knew what was going on" face to really know what was going on, it was a big difference in reality. I knew I could help people as I wantedhow the economy really works. I knew I could, people can not afford to help their education. I could give people the opportunity to smart fast the costs normally associated with education. In 1990 I started a publishing company called Smart and easy to book publishing and reading books on real estate and business services. The premise behind Smart book was to give a way for the poor, get your hands on high-impact informationgave them the information they need to succeed in business. To see the photo bigger, better and more informed decisions based on facts rather than speculation. I knew I could give people like me the opportunity of training without the expense of time and money he had paid.

And where this inspiration? I read a magazine Entrepreneur one day and saw an ad for a book "How to Become a Commercial Loan Officer" for $ 100.00. paid with reluctance and skepticism$ 100.00 for the program was a scam. When I received the book, read it thoroughly and is chock full of ideas on how to put together packages of bank, as loans and mortgages for commercial property funds, etc. The only book that inspired me to try to be commercial loan broker . As a result, I ran into major financial players in the United States as developers, investors, bankers, commercial mortgages originated more than $ 32 million of commercial real estateApartment for funding. None of this would have happened if I did not spend $ 100.00 on the loan program. It 'was the single best educational investment I've ever done. You have all the answers? No, but it gave me the knowledge that lets you talk with professionals who guide me in business. And these experiences are combined, which prompted me to build intelligent books. The only difference is that the products are smart pounds less than $ 50.00, so that more people can affordProducts.

And what has to do with the opportunity cost? Here's the answer: when the lack of education in business or Estate Options. The possibility for, education time, effort and possibly cost a bit 'of money. But what the costs are not increased? It is not a matter of education, especially if you are thinking of starting a business, or buying a house or what you think about the potential costs incalculable.

The possibility of the buttonLinks can cost you time and effort on the link and check it out. But what the costs are not clicking on the link?

Copyright © 2006 James W. Hart, IV All Rights Reserved