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You can consider opening a franchise for any established company where you will only require to find a proper location and arrange funds for your operations. FixedCosts / (Average Price – Variable Costs) = Break-Even Point –. What kind of needs will you satisfy? Will it be a personal need or a market need?
A succession of CEOs prior to Rick Wagoner (who fought heroically to overcome the dreadful hand he was dealt) allowed all manner of legacy costs to build up (retiree health, Jobs Bank, etc.) and those largely fixedcosts were more painful and debilitating if GM shrank in the U.S. — as it did — than if it grew.
savings and loan industry crisis in the 1980s and 1990s showed us, enough marginal franchises added to a healthy portfolio can swamp the enterprise. In larger facilities, there is often an astonishing proliferation of special care units, ICUs, and quasi-ICUs that are expensive to staff and have high fixedcost profiles.
The media’s bias toward big events stems from three features of its economics: Fixedcosts. The cost of covering a golf tournament doesn’t depend on whether Tiger Woods plays. Fixedcosts have always been central to the economics of media. But if he does, ratings — and revenue — double.
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