The Economic Perspective: “Some Business Advice”

Mary:  I’m Mary Walden, with economist MW, welcoming you to the economic perspective.   Today’s program looks at some business advice.  Mike, our economy depends on people willing to take the chance of starting and then running a business.  Let’s assume someone has been successfully operating a business for a couple of years.  What are the next steps to consider?

 

Mike:  Summary Answer

  • Three ideas
  • Reducing your costs per unit – that is, getting more efficient in your operation – if can do, profit rate will rise
  • Re-thinking your profit – maybe you start out with one product – say portable air conditioners for homes – and now you think about portable AC’s for businesses, or portable heaters; or maybe you add maintenance and repair
  • Branding your products – creating a marketing image that your portable AC’s are the best – and when people need portable AC’s, they think of you first – if successful, will allow you to charge a premium
  • I’m MW

 

Mary:  And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.