Sunday, July 19, 2009

Adaptive Capacity

Every business can be thought of as a plane such as the Boeing 777. When an airline adds a new plane to their fleet, they add capacity. The airlines then go one step further by dividing that marginal capacity into 5 segments. First Class, Business Class, Full-fare Coach, Coach & Discount/Priceline. Other businesses that work with similar adaptive capacity models include hotels, golf courses, movie theaters, and car rentals. Your CPA should also have an adaptive capacity model in his/her business. So the next time you are working with your CPA, think about your budget and what level of service you want from your CPA. Ask yourself the questions associated with these pictures.

Where do you want to sit on your CPA's plane?


Or, would you prefer a private jet?

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