How to Mitigate Hidden Costs in Business?

[Suba]

When running a business, we often encounter hidden costs, where these costs are often not calculated beforehand or recorded in budget planning. Many business people ignore or underestimate hidden costs but in the end they will have a serious impact on their income statement. Even though business people cannot completely avoid hidden costs, we can at least mitigate them. Hidden costs in business often appear in various forms of costs such as re-delivery costs due to errors in sending goods, unexpected repair costs, machine downtime during the production process, communication costs, additional administration costs, etc.

 

[Starmix]

As much as my experience in business is concerned, I have not mitigated costs, the pricing is exact, and my expenses are minimized and properly calculated.

 

[Suba]

In fact, no matter how smart a businessman is, he will not be able to escape hidden costs that can arise from various angles because they are unexpected, such as broken glasses/bowls, damaged computers, tents collapsing and being damaged by strong winds, earthquakes, fires, employee contributions due to illness, promotional costs that are greater than planned, etc.