Opportunity cost in action
One trait which small business operators possess is thriftiness. If you don't learn how to stretch a dollar as a business operator then you're soon to find yourself in cash flow trouble.
Over the years (o.k. perhaps a decade or so) I had accumulated about a dozen pens. They were each beautiful but needed to have their respective ink tubes replaced. They sat in a jar on my desk for years and I'd have at least a couple of clients throughout the years reach for one of those faulty pens to sign documents only to inform them that none of them worked. I thought many times about grabbing those pens and heading down to the office supply store but never did. So what does empty pens have to do with opportunity costs? Well, I dumped all those pens in the trash can and now used the opportunity to place pens and pencils that work there instead. I know exactly where they're going to be and don't have to waste time looking in drawers to get a writing utensil. Do I cry over the beautiful pens tossed in the trash can? No. It's time to move on.
I am a CPA in San Antonio and provide bookkeeping, payroll, taxes and more. We offer a free initial visit and look forward to serving your business needs.
Richard J. Garcia | 03/02/2012