The concept of cost-effectiveness is rarely used in small businesses to the extent that it could be. Since it is not unusual for a small business owner to be unsure what a cost effective solution consists of, why should it be surprising for them to ignore a business tool that they do not understand?
There is probably a common perception that cost-effective solutions involve a theoretical use of economics and therefore have no practical place in the small business tool shed. While that is generally not true, it can still be helpful to learn some of the "truth versus myth" explanations that provide some basis for understanding why we do not always choose the "best" business solution after reviewing all of the available facts.
I have spent the better part of four decades constantly learning more about recurring business problems and how to prevent or avoid them. One of the most important "lessons learned" during that period of time has been how to apply the concept of cost effectiveness in a way that is very transferable to my small business clients. You will find examples of these teachable moments throughout this website and other AEX Commercial Financing Group sites as well. I look forward to sharing my cost effective wisdom and perspectives with you on a personal level if you decide to become our next AEX client.
By the way, I have intentionally chosen to use both of the correct spellings (cost-effective with a hyphen and cost effectiveness without a hyphen) to help the search engines find this page regardless of how they might think it should be spelled.
Copyright © 2014, Stephen Bush. All rights reserved. AEX Commercial Financing Group
Stephen Bush is the CEO of AEX Commercial Financing Group. He is a small business consulting expert who helps small businesses throughout the United States and Canada.
Cost-Effective Career Transitions
An area that should be increasingly placed under the microscope for measuring cost-effectiveness is how individuals handle career transitions. Whether moving from an existing career in the military or any other occupation, the costs in comparison to effectiveness deserve much more serious attention than they often receive.
In particular it is impossible to overlook the enormous costs of obtaining a college education when employment prospects are not measurably improved in many situations. Accumulating student loan debt obligations in excess of $100,000 does not make economic sense when education costs are compared to the expenses of other relevant alternatives such as specialized training that can cost 5 percent (or less) of what a current college degree costs and frequently results in annual income in excess of prevalent employment experiences for recent college graduates.
This kind of comparison should also be made when individuals are making choices and decisions about attending graduate school. What are the costs in comparison to the effectiveness?