Accountinator

Every teardrop is a waterfall

A healthy start up business must be flexible and ready for unexpected changes in demand.
Key to building this flexibility into your business is to minimize fixed costs and overhead.
First of all, what are fixed costs? A fixed cost is any cost that will remain the same, regardless of changes in your sales volume.  A good example would be car lease payments.  Sell more or sell less, your car lease payment will still be $299 this month.  Rent, employee salaries, and monthly service provider fees all increase your fixed costs, and should be minimized.
Instead, structure your business to have more variable costs.    Don’t pay salaries to employees.  Instead, hire independent contractors to do individual jobs.  Don’t rent warehouse space; pay a per-piece rate for storage.
As an example, book publishing sites will entice you to pay a monthly fee for premium services.  You will have…

View original post 36 more words

About Mark P. Holtzman

Chair of Accounting Department at Seton Hall University. PhD from The University of Texas at Austin. Worked at Deloitte's New York Office. BSBA from Hofstra University.

No comments yet... Be the first to leave a reply!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: