Business Notes: What is opportunity cost?

Opportunity cost is giving up something else to buy something at the cost of the alternative forgone.

EXAMPLE:
An entrepreneur's social life and career may need to be given up when starting a business.

- Esjae x

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Business Notes: Opportunity Costs

The opportunity cost of starting a business venture refers to the benefits that could have been gained from an alternative project. If an entrepreneur invests their money and time into setting up a fashion business rather than a cafe, the opportunity cost is the rewards that could have been gained from the cafe.

Any decision to set up a business will involve an opportunity cost.
When choosing to set up a business you should be careful to consider what you are sacrificing. You need to be sure that you think it is really worth it.

- Esjae x


Follow me on Twitter: http://twitter.com/esjaeofficial
Check out my poetry/ writing blog: http://esjaeofficial.blogspot.com
Subscribe to me of Youtube: http://www.youtube.com/theofficialesjae
Add me as a friend on Facebook: https://www.facebook.com/esjaeofficial
E-mail me: esjae-official@hotmail.co.uk

Read More