“Personalized Organic Healthy Food” business is one of the areas I want to indulge myself in near future; individualizing each customer regarding their health condition and purpose such as weight control etc. All products would be customized to match each individual customer’s needs and requests.
At the beginning, I would lease a small place for an office and displaying some products; my business will be mainly an online promotional. Depending on the sales volume, I would eventually move move into a medium size place suitable for staffs, equipment, and inventories.
As term defined – the short run is a period of time in which the quantity of at least one input is fixed and the quantities of the other inputs can varied –, at the beginning, leased small office, some inventories, and basic equipment such as computer and printer will be the short-run costs.
If, in the future, the demand for my products, organic health food, has greatly increased, I will consider more inventories to be a variable input. I will need extra labor, but we can likely increase our labor supply by running an extra shift and getting existing workers to work overtime, so this is also a variable input. The equipment such as refrigerators on the other hand, may not be a variable input. It may be time consuming to implement the use of additional equipment. It depends how long it would take me to buy and install the equipment. Adding an extra store is certainly not something I could do in a short period of time, so this would be the fixed input.
One of the similar businesses would be The Community Natural Food established in 1977. They provide their products through both on and off-line; they provide unrefined and organic foods and natural nutritional supplements.
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