After the author's study found that the cost of the company should be divided into two parts: visible and invisible. In the production and operation process, it can be said that it is an explicit cost, which can be reflected in financial data, and cannot be reflected by financial data. It can be called an implicit cost. Hidden costs can also be called corporate environmental costs. For example: countries, industries, international markets, regions, corporate culture, etc. Changes in these factors will directly affect the cost of the company.

In the hidden cost of China's doors and windows enterprises, the national cost is the largest hidden cost of the company. For example: the country’s brand status, national political system, national policy, natural environment, diplomatic relations, natural disasters, social security, national beliefs, etc., all of which will directly and indirectly bring huge costs to the business and directly affect The company's competitiveness in the international market. Chinese companies are constantly being anti-dumped by some developed countries in the international market. The rich people in China are spending huge sums of money to migrate to developed countries. The Chinese are still one level lower than blacks in European and American countries, and so on. All this is from the country. The cost of brand status.

The cost of the industry is the second largest hidden cost of the company. For example: the industry's corruption, chaotic market order, lack of protection of technical property rights, lack of standards for production and sales, difficulties in judicial safeguards, lack of restrictions on talent vacancies, high financing thresholds for enterprises, lack of protection for leading enterprises, lack of support for technological innovation, and opaque industry information , lack of product quality supervision and so on. In short, the environment of the wooden door industry will directly affect the healthy development of each company, and it will directly affect the operating costs of each company. Dairy industry's "poison milk powder incident" and home improvement industry's "designer rebate wind" are all the best examples.

Regional costs are also called local costs. Regional costs are the third largest hidden cost of wooden doors. For example: regional natural environment, living environment, cultural environment, traffic environment, location environment, market trading environment, investment policy, social security, local culture, industrial supporting conditions, etc. These factors will directly and indirectly affect a company. The operating costs. This is why thousands of companies gathered in China's Pearl River Delta and the Yangtze River Delta. They are also ceramics companies in Shandong Zibo, Sichuan Jiajiang, Jinjiang, Fujian, Tangshan, Hebei, Gao'an, Jiangxi and other places. The reason why the brand can sell a good price.

The cost of changes in the international market is the fourth largest hidden cost of the company. For example: the international financial crisis, the rise and fall of internationally accepted currency values, diplomatic conflicts, trade barriers, military warfare, etc. These factors will not only affect China's corporate exports, but will also affect the entire Chinese industry. The EU anti-dumping, the US subprime mortgage crisis and other incidents are typical examples. After these incidents, Chinese companies have paid a high price for this.

The cost of corporate culture is the fifth largest hidden cost of the company. For example: product subtlety, lack of credibility, lack of after-sales service, tax evasion, not respecting employees, deceiving customers and consumers, etc., these acts have laid a legal and moral hazard for the development of enterprises. The problems that occurred in companies such as Gome, Aiduo, Jianlibao, and Kelon were ultimately due to problems in their corporate culture. These companies have paid a heavy price for this. The issue of corporate culture is also one of the main reasons why the average life expectancy of Chinese companies is only 2.9 years old. The author believes that the hidden cost of the company is always greater than the significant cost of the company.

If the business environment is likened to water, then the company is a fish in the water. As a good entrepreneur, we must not only be good at controlling the significant costs of the company, but also be good at assessing, avoiding and reducing the hidden costs of the company. Otherwise, your company's strength will be even stronger, the management level will be more brilliant, and the ability to innovate will be even greater. In the end, your company will still be dead.