Math and Running a Business
I Know I have been to many towns in my life and noticed people trying to make a living at street vendors. There are many street vendors in many cities across the US as well as other countries such as Chicago, New York, and Cancun Mexico just to name a few. I have never had or thought to ever spoke to a vendor about business. “No matter where they live or what they sell they all talk about business just like any CEO or large company Executive would” ( Charan, 2001, P 1). They are all out to make a profit. They all need to find a way to make sure the product sells and quickly so a profit can be made.
So a vendor will start his day with quality and quantity, he needs to make sure he will not have too much inventory at the end of the day so he may purchase more product for the next day. Say something like fresh fruits or vegetables. “The fresh products are placed in the front (retailers call this merchandising)” (Charan, 2001, P 23). Any vendor needs to watch their competition and look to see what their product is selling for. This will happen every day so as the vendor is watching he may also have to cut his prices so the value would increase for the customer. The next day and the day after will go the same way it’s all about how to make a profit. Being a one-person business may seem simple, it’s not there are many decisions that need to be made. Every business is the same one way or another they need to make money to survive. Math is an essential asset in the business world, without math no business would be able to operate. The business world revolves around math, from profit and loss statements, bookkeeping, taxes and employees’ salaries. Formulas and equations are used to determine how much product one might need. For...
References: Carol Deeb. (2012). importance-basic-math-business-41097.html. In The importance of basic math in business. Retrieved October 13, 2012 from http://smallbusiness.chron.com/
Ram Charan (2001). WHAT THE CEO WANTS YOU TO KNOW
Copyright © 2001Ram Charan Designed and developed by FSB Associates
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