Here’s How to Make More Money

If I put the term “opportunity costs” in the title of this article most people would roll their eyes and move on. But if you want to make more money, pay attention. Most people dismiss opportunity costs as a theoretical concept economists use to confuse people who live in the real world. By the end of this column you’ll understand that opportunity costs are real and that including them in your analysis gives you important practical information that can help you profitably grow your business. Ignore them, like most of your neighbors do, and you’ll get the results most of your neighbors get (they don’t pay themselves a competitive wage, they rely on off farm-income, etc.). Understanding and using opportunity costs is essential if you want to change that. When you look up the definition of “opportunity cost” you’ll probably find something like, “the benefit that a person could have received, but gave up, to take another course of action.”  I got that definition from investopedia.com. Their definition isn’t wrong. It’s just not very helpful. I think it is easier to understand why opportunity costs are essential if we define them a little differently. Rather than looking at the “benefit we gave up” what if we look at the cost of pursuing a course of action…the cost of pursuing  an opportunity. Let’s start with cattle and land. One of the first things we address in the Ranching For Profit School is the difference between the land busine

All the grazing management tips you need

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