How would you apply the concepts in this chapter to the starting and first 6 months of running a business of your own? With respect to the discussion question, please make sure that your answer is grammatically correct and that you have checked your spelling.
Your initial reply should be no less than 200 words. Then Reply to at least two peers.
1. I have prior experience with owning businesses. Some lessons learned through out the past weeks from the class that would benefit someone creating a business would definitely include, general tracking of how much money is going in and out of the business, being able to note if their is a decrease/increase in profit as well as knowing if you’re profiting at all. Good relations with customers is also definitely important to keep the numbers consistant as well as help them increase.
2. When relating cost behavior to a new business, The business owner should focus on the relationship between the standard errors the business might or will face. The business will have fixed cost and variable cost these two term together will be the mixed cost for the business. So for example if i decide to run a yoga studio my fixed cost will include the physical location rent and the variable cost will be: the studio electricity, running water , and gym equipment. Next we have the breaking even concept, The goal for any business is to gain profit and build wealth. Breaking even is simply the point at which total cost and total revenue are equal. This in accounting refers to that there is no loss or gain for my small yoga business with in the first six months