What is a Bottleneck?

What is a Bottleneck?

In a business system or operations chain, things can only go as fast as the slowest piece. A bottleneck in a system is a part that is slowing down everything else. If the bottleneck is strengthened than the entire system gets faster, even if less resources are allocated to the other parts in order for the bottleneck to be strengthened.

Example of a Bottleneck

Let’s say two people are working to make and sell widgets. Person 1 makes them and person 2 brings them to the store to sell them. If person 1 can only make 1 widget a year and person 2 is capable of selling a widget in 5 minutes, only 1 widget will be sold for widgets cannot be sold faster than they’re made. Person 1 is the bottleneck. If person 2 helped person 1 make widgets, then even if person 2 has less time to sell things, more widgets would ultimately be created and sold.    

Fee Structure

Rate Assets Under Management
1.44% Below $125,000
1.00% Between $125,000 and $750,000
.85% Between $750,000 and $1,250,000
.80% Between $1,250,000 and $1,750,000
.75% Between $1,750,000 and $2,500,000
.70% Between $2,500,000 and $3,250,000
.65% Between $3,250,000 and $4,250,000
.60% Above $4,250,000

A single rate is applied to the entire account. So a person with a $750,000.01 account pays less than a person with a $750,000 account. I will waive personal tax return fees for accounts over $1 million. For accounts that are above $5,250,000, we’ll need to discuss a custom rate. 

As I’m writing these to help my readers, I would be very appreciative of any input in regards to what I should write next. If you want me to write about a particular topic, please contact me. Please contact me if you would like to submit a post to my blog.

If anything that I mentioned above interests you, please consider downloading my free e-book. The book contains my thoughts on investment management and some information that I think everyone should know. You can also download it below.

E-Book Download

Questions for the comments

Did my explanation make sense? Do you agree or disagree with what I said?

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