As the MFI sector continues to grow, and fast growing organizations face the challenge of ramping up operations, one key question faced by every CEO is – For every month of delay in opening a branch – what is the loss incurred ? Also if there is an opportunity cost – how much is it ?
While the formulae could be a fancy equation with many variables, one could do a “Back of the envelope version” to get at a number.
For us at MTA, this is an important area of discussion, as most of the times we see that branch expansions are being held up due to lack of staff. Recruitment cycles are painfully long and the demand on existing management bandwidth is huge.
Best ways of calculating the true costs ?
