Thursday, December 20, 2007

Without Delay, Without Opportunity Cost

In starting up a business or in running a business for that matter, delays are almost always expected. It doesn’t necessarily mean though that you should make it an excuse. When we have to wait on other people’s approval or delivery, we can only do so much. Other than our constant follow up, we cannot do anything more.

But sometimes the delay comes from us also. If this is the case, we should do something right away. We should remember that time is money. As we delay the opening of our business we postpone earning so much for this time. That is what we call opportunity cost. Even though we may not be incurring additional cash outlay, we lose the income we should be earning should we have opened sooner.

We should always keep this in mind. We should cut off delays. And we should start with ourselves. We should do and accomplish all that we can do fast and efficiently. As for our orders and other delays caused by others, we should patiently follow up on them and if necessary, threaten to cancel our orders to make them move and deliver sooner.

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