Business Model and Practice: Efficient Capital Requirements

Leverage third-party assets, variable costs and upfront billing to maximize profit and minimize cash requirements

Efficient Capital Requirements

Business Model and Practices > Economic Models

Leverage third-party assets, variable costs and upfront billing to maximize profit and minimize cash requirements

Innovative Practices
  • Reduce capital expenditures by leveraging third-party assets, like cloud-based and on-demand services, rather than acquiring assets
  • Construct variable cost models that adjust flexibly to changing revenues
  • Find ways to bill and collect from customers upfront for services provided, such as annual subscriptions or discounts
  • Understand true profitability and cash flow requirements by product and region

Books and Other Recommended Sources

Are you making decisions that maximize profitability and minimize cash flow requirements in your business?