I know margin of safety from the concept of Break-Even Points in Business. I wasnt aware that i use it everyday.
My understanding is if i started a business, i can allow for the sales volume to fall until a particular point at which my business starts making losses
Within that margin or sales slump...ill have saved up cash to keep the operations and salaries going
Ill also have to prospect hard to fill the sales pipeline of my business until sales volume is back above the margin?
Having surplus cash (a margin of safety) is certainly a good idea for business owners, yes. When you cross the road you factor in a margin of safety. There are many instances in life where this concept can be used.
I know margin of safety from the concept of Break-Even Points in Business. I wasnt aware that i use it everyday.
My understanding is if i started a business, i can allow for the sales volume to fall until a particular point at which my business starts making losses
Within that margin or sales slump...ill have saved up cash to keep the operations and salaries going
Ill also have to prospect hard to fill the sales pipeline of my business until sales volume is back above the margin?
Having surplus cash (a margin of safety) is certainly a good idea for business owners, yes. When you cross the road you factor in a margin of safety. There are many instances in life where this concept can be used.