Cost-Benefit Analysis
Recently, i had a good discussion with one of my friend, who wanted to open start-up involving retail shop-keepers. After a lot of listening to him, the idea didn’t sound very convincing to me and I suggested to him that i will do Cost-Benefit Analysis for him, based on my previous experience.
As i was not totally aware of all the aspects of his business model, therefore i ended up doing cost analysis only and left the benefit analysis on to him. I calculated the approximate cost that he will have to incur at the start and at the end of one year. These costs didn’t involve any sweat costs or any other intangible costs. Therefore a question came to my mind- when we do any cost benefit analysis- what should we put as sweat cost? Ideally people put some approximate salary that anyone of their experience might be getting in some good company. I don’t question this method, but i suppose while doing cost benefit analysis we should also put some numbers for the passion, time, emotions etc that we will put in to make business successful. As all these are part of cost only, and i totally agree all of these won’t get converted into money as a benefit, but might again get converted to intangible assets only. But nevertheless they should be part of cost benefit analysis.
Politics and Economy
Obama is in India, and one thing that has re-affirmed me from his visit is that Politics and Economy always go hand in hand. You cannot simply talk economy and leave aside important political issues or vice -versa.
Even personally i feel politics and economy both have a lot in common and they need to work together to bring win-win situation for countries.