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.
|Rate||Assets Under Management|
|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|
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.
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Questions for the comments
Did my explanation make sense? Do you agree or disagree with what I said?