SLC | S21W1 | Costos para emprendedores - Introducción al costo.
Steemian Friends,
Today, I will participate in Steemit Learning Challenges Season 21, Week 01 of @yolvijrm sir, a beautiful educational contest. The subject is called SLC S21W1-Costs for Entrepreneurs - Introduction to Costs. I hope everyone will like my writing.
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Costs are very important to entrepreneurs. Cost is a form of money. It is the cost of producing goods in return for an entrepreneur's money. Costs are the costs incurred by an innovator or a trader in producing the product. The success of an entrepreneur or a businessman depends on costs. The lower the product's cost, the more profit the entrepreneur will earn.
Importance of cost to the innovator:
An innovator will be successful when he can produce the product at the lowest possible cost. I think an entrepreneur's intelligence, knowledge and experience can help businesses reduce costs. For example, I want to be an entrepreneur and start a business. To start the business, I must add various expenses, including VAT, office staff costs and rent, to the product price. I am an entrepreneur, and I have to produce products by accounting for all my office expenses. I have to calculate the cost of making a product to determine the price of the product. As an entrepreneur, if I sell the product without considering the production cost of the product in the beginning, I will lose my business. So, I must know the cost of production to be a successful entrepreneur.
Difference between costs and expenses:
I currently work in a rod manufacturing company. Today, I will highlight the difference between cost and cost through our rod production. Our company's office rent, factory rent, and employee salary costs are fixed expenses that remain every month regardless of rod production. Our company pays these expenses every month.
On the other hand, the cost of purchasing raw materials, electricity, and gas for our company's rod production depends on the rod production. The above expenses may be more or less per month. Each company has a difference in costs and expenses. Some expenses are permanent, and some are temporary. Temporary costs depend on the cost of production of the product.
I am the company's electrical engineer, so I have to work out the cost per ton of rod based on the rod production per month. I have shown below the production cost per tonne of rod as reported for the last two months. The company determines the selling price of the rod per day based on the cost of production.
Rod production cost along with electricity bill of our company
Advantages of cost efficiency:
The main advantage of cost efficiency is that there is no loss in business. The key to being a successful entrepreneur is to know good costs. Raw materials cannot be purchased at extra cost before I produce the product. I have to buy raw materials at a good price. I have to determine the price of my product by calculating the raw material purchase cost, production cost, factory cost, and labour cost. If the other company's price is higher in the market, my product will sell less. So, I have to take advantage of the good cost before producing the product.
Good costs keep the product in the market. I have seen from my work experience that many companies in our country have closed down due to low cost of production and low sales prices. Rod manufacturing companies buy raw materials at low prices, and the rods produced with those raw materials are getting good prices in the market. If the raw material purchase cost is high, then the profit is low at the time of sale. So good costing is very important for product production.
I currently work. I plan to become an entrepreneur in 2025. I will do agro farm in my village house. I have family wealth, but I have less money. So, I have to pay more attention to costs while being an entrepreneur. I will do the following ways to reduce costs.
- Solar Power Plant:
I will build a solar power plant for my agro farm. I am an electrical engineer, so I am ready to do the work myself. Two costs will be reduced in my agro farm. I don't have to pay my electricity bill every month because the sun generates electricity. As I am an electrical engineer, solar power plant works will not require an engineer.
- Installation of biogas:
I will install a biogas plant in my agro farm, which will reduce my fuel consumption. My work-life experience shows that reducing electricity and fuel costs increases an entrepreneur's success rate. Biogas plants with agro-farm waste will reduce environmental pollution, and labour costs for cleaning agro-farm waste will be reduced.
I will build my agro farm outside the district city because I will need less labour, factory setup, and other costs. The cost of land in the village is much lower than the cost of land in the city. Through various processes, I will sell the milk and meat produced from my agro farm in the city.
We are currently in the digital age. I will create a website for my agro farm and advertise products myself as I learn website making. I will sell my agro-farm products completely online, which will reduce my labour costs.
| SL No. | My Invited Steemit Friends |
|---|---|
| 1 | @memamun |
| 2 | @shahariar1 |
| 3 | @max-pro |
This is my Twitter share link :
https://twitter.com/mahadih83660186/status/1850876169006256261?t=M90g9gGqbsJwlxVqAU4GcA&s=19
Greetings @mahadisalim
1.- You have shared the concept and importance of Cost. Cost is the capital outlay necessary for the production of goods or provision of services. As you say, it is necessary to take into account all the elements that generate disbursements when calculating the price of the product or service.
2.- You have explained the difference between Costs and expenses taking into consideration your own activity. We could say that the cost is the investment towards resources that directly influence production; and from which a performance is expected, such as sand, cement, labor if we talk about a task under construction, while the expenses are associated with secondary disbursements such as stationery, administrative personnel, disposable cups, among others.
3.- You have made it clear the benefits of determining costs efficiently, making people understand the importance of obtaining raw materials at a good cost. It is important to keep in mind that quality also determines the success of a product, regardless of what it may cost, it is a risk that many innovators take.
4.- You have shared a general strategy to determine the costs in your venture. It may be viable, due to the level of need for the product. Solar panels reduce costs for electrical services, it is a good option.
Thanks for joining the contest
Dear Sir, Thank you very much for your review.
Your examples are very clear and straightforward. It will be very useful for new entrepreneurs. Good luck for the contest.
Dear brother, thank you very much for reading my post and giving a nice comment.