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Extreme Game of Monopoly over at Simunomics I’m having a blast with Simunomics, a massive mulitplayer business simulation where you can start a business and compete with other players. The goal is, of course, to maximize shareholder value. Build up your retail, manufacturing and natural resource empire to gain market share and build up profits. I started […]
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It is absolutely imperative to ensure that a new business keeps on top of all the paperwork from the beginning.  Putting away expense receipts and other documentation in a drawer and hoping it will make sense when IRS filing time comes around is only going to make life more difficult. Accounts Accountants love Microsoft Office […]
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When faced with a decision, opportunity costs are the costs of foregoing income from choosing one alternative instead of another. For example, suppose that you are trying to decide whether to Go out for lunch in a restaurant today or Bring lunch and eat it at your desk. Lunch costs $2.00 to make. Lunch in […]
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Watching TV late at night and learning how to flipping houses, might lead you to think that real business seems a lot like playing Monopoly(tm). After all, the object of Monopoly is to buy as many properties as you can and end the game with the most money. Sounds like a sound formula for early retirement, […]
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 Hiring employees is, so (shall we say) 20th Century.  Employees need health care, social security taxes, state unemployment, sick days, pension plan, life insurance, disability, occupational safety, and more.  A well-trained and loyal workforce also creates huge fixed costs which you will have to meet every month before you can post a profit. Therefore, structure […]
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What’s your goal? How can you measure progress towards meeting your goal? These are practical questions – not only does every business person need goals, but they also need to measure progress. I’ll give you a simple example. I’m blogging. My current goal is to get people to read my blog. I measure my performance […]
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Perhaps the most powerful aspect of e-commerce is the ability of web entrepreneurs to create major business using almost no assets. Consider one of the great retailers of yesteryear: Sears Roebuck. To generate tremendous sales, Sears built a chain of department stores across the country, printed a fat catalog every year, and then mailed it […]
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To run a business, you must understand how your business’s costs behave.  A fixed cost is any cost that will remain the same, regardless of changes in your sales volume.  Variable costs are costs that change with sales volume.  The greater your sales, the greater your variable costs. Step costs change only at certain intervals.  For […]
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