
Business Model and Practices > Economic Models
Leverage third-party assets, variable costs and upfront billing to maximize profit and minimize cash requirements
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
- Exponential Organizations: Why New Organizations Are Ten Times Better, Faster, and Cheaper Than Yours (and What to Do About It), by Salim Ismail, et. al. (2014)
- TURNING CAPEX TO OPEX: WHAT WORKS, WHAT DOESN'T, by Cesar Bacani (2011)
- How to Better Manage Your Cash Flow, by Entrepreneur Media, Inc.
- Creative Cash Flow Strategies for Small Business, by Janet Attard
- Small business tips: 10 steps to cashflow heaven, by Rosie Niven (2013)