Category: Brands

Can we really reduce the cost of doing business?

For any business to exist, there are costs involved. Some are fixed costs, such as a lease, salaries, internet etc. While some are variable. Which are incurred only if we run the business? Example raw material, fuel, electricity etc. Though some of these may be required in minimum quantities whether we run the business or not.

If we closely observe, there is only up to certain limits where we can bring down the cost of running a business. In other words, there is a limit to the efficiencies. Let’s say usage of fuel or lubricants. Using less than required may actually end up costing much more for the business in terms of damages or losses.

However, there is another way to bring down the cost of running a Business. It’s by improving productivity. Let’s say an employee is producing $1000 worth of material a day. His cost (for calculation purpose only) is $100 per day. Whether he works or not, he has to be paid $100 every day. Which means the cost, in this case, is 10%.

Let’s say if we can somehow enable the employee to produce $2000 per day. Of course without him having to work overtime, or physically exerting more. Then the cost comes down to 5%. Though in real life it is not as simplistic, this example is used to communicate a message.

Now how can you bring down your cost of doing Business? Try CashOS.
info@CashOS.com

Bharath
Founder & CEO
bharath@cashos.com
Written on 22nd November 2018

How to get the best out of your business Assets?

When we talk about Business, there are different ways to look at what constitutes as Assets. For example, if we look at the Balance sheet, it shows a segment called Assets, which primarily include any of the capital investments such as machinery, land or any other investments. It would also include items such as Cash, raw material, finished goods etc. It could also include Intellectual property or Goodwill which are intangible.

However, there is one asset that is considered under ‘expense’ category. That is the Human capital. Probably the most important ‘asset’ any company has. Name any company which has grown to substantial levels. Microsoft, Apple, Google. There are many more we could name. Each one of them reached the levels they are because of the people, the talent. Imagine any of these companies without the talent.

Now the point of this blog is how to get the best out of the people asset? Knowledge industries have a different way to achieve this. Incentives, work environment, recognition etc play a key role in helping achieve this.

Now consider the other side. Businesses which are in say FMCG or Retail or Distribution. Where a product has to be moved from point A to point B. How can a Business optimize the performance by its people assets? Unfortunately, there is only so much a company can give to people at this level as incentives. Especially in the competitive environment, we are in.

This is where technology can play a very important role. To help all concerned. Imagine a person can see his own performance at the end of every day. He doesn’t need to compare himself with others, however, it will at least give him an opportunity to improve, even if it is by slightest of margins. This will help him as well as the company. I am very sure such employees will be better rewarded by the companies also.

Would you like to learn how this concept of ‘self-regulation’ can be achieved in your business?

CashOS may be the answer.

Reach out to us at info@CashOS.com

Bharath
Founder & CEO
bharath@cashos.com
Written on 22nd November 2018