Despite the benefits of being a large business, small businesses can be very successful too, and thrive for several important reasons.
Posts published in July 2021
Budgeting is important for having clear financial situation. Create a simple budget and system to follow it, if you do not have one already.
Diseconomies of scale that result from running a very large business organization can be avoided by using different approaches to management.
External diseconomies of scale are diseconomies of scale that occur within the industry (outside the firm) and are largely beyond an individual firm’s control.
This article describes in details different types of income that my family has including both Active Income and Passive Income, as well as the future income source and types of income which I am no longer interested in.
Internal diseconomies of scale are diseconomies of scale that occur inside the firm and are within its control.
At this stage of my life, me and my wife are focused on ‘systematic and continuous wealth building’.
Many people believe that the bigger the business, the better for the owners. It is not entirely true.
External economies of scale occur when cost per unit of output depends on the size of the industry. They are cost-saving benefits of large-scale operations arising from outside the business.
Internal economies of scale occur when the cost per unit of output depends on the size of a firm. By operating on a larger scale, a business can reduce its average costs of production.
Economies of scale mean reductions in a firm’s unit cost of production, or the Average Cost (AC) as the business grows increasing in size.
The term scale of operations simply means the size of business operations measured by the business's maximum output.
Expanding the business has many benefits for the owners. Let’s take a look at the most important reasons why the owners may want to grow their businesses.