Ever think about turning a hobby into a commercial venture? Or working full time as an independent contractor? Or simply wondering if textbook economic principles are relevant in real life? Through a sequence of short cases, this book shows you how to use the basic tools of economic and financial analysis to answer common business questions such as: whether or not a new business venture makes economic sense for you; when to hire extra help; what variety of products and services to offer; what production process to use and what pricing strategies to follow. Includes glossary, index, and business templates that can be adapted for any commercial venture. Appropriate for both personal and classroom use.
Julianne Nelson is Principal, Sole Proprietor, N.W. Partners, Washington, D.C.
Chapter 1 Preface Chapter 2 An Invitation to Consider Chapter 3 The Consequences of Changing the Status Quo: The Opportunity Cost of Change; Computing Hourly Earnings; Try It Yourself! Chapter 4 Hour By Hour: Working as a Contractor: Just Breaking Even; Finding Equal Job Satisfaction; Working as a Part-Time Contractor; Try It Yourself! Chapter 5 Selling Your Products, Not Your Time: Business Earnings and Opportunity Costs in General; Business Earnings and Opportunity Costs in Practice; Taxable Income and Gains from New Ventures; Try It Yourself! Chapter 6 Growing Your Business and Your Profits: Why Marginal?; Your Desired Scale of Operation; The Cost of Expanding Production; The Benefit of Expanding Production; Choosing the Scale of a Service Business; The Principles in Practice: Average versus Margi Chapter 7 Pricing Your Goods and Services: Selling More at a Lower Price; Pricing Strategies to Avoid; The Principles in Practice: More Pricing Examples; Lessons Learned; Try It Yourself! Chapter 8 Asking the Right Question: Using the Best Available Information; Marginal Cost and General Marketing Strategies; Accounting for Common Costs; Lessons Learned Chapter 9 Where Do We Go From Here?: On-Line Resources; Books of Interest Chapter 10 Glossary Chapter 11 Index