UK Venture Capital - Supply Chain Cost Reduction Analysis
Introduction
With money no longer pouring into the Internet and high technology
stocks, and with so many ideas now old hat it is vital to
show investors that you know how to cut costs and overheads
intelligently and make efficiency of your site and business
paramount. One of the first areas to address is the value
you will get from suppliers of everything from hardware and
software, through dial-up and even office furniture and office
space. This also applies to staff (see Team Member Selection).
As many people are realising there is a vast gulf between
paying retail or even trade prices for equipment and those
who seem to be able to conjure stuff from the ether. Finding
the best places and partners for your business to purchase
is almost an artform and certainly involves a lot of costly
trial and error.
What?
Simple theory really. What investors are looking for is threefold:
-
Have you reduced your spending and your planned spending
as low as possible?
-
Have you evaluated manufacturers and suppliers to vet
their products and services and vitally their service
levels?
-
Have you minimised your hassle by ensuring the minimum
number of points of contact if trouble occurs?
This is simply a balancing act and a load of research and
temper tantrums with firms who don't meet your expectations.
It does help to know where to start though, and like everything
else, start at the top with the best you can find.
Why?
Most ideas which involve Internet usage illustrate the point.
Its impossible to do anything without some form of digital
access to the Net. Research, development and promotion are
fiendishly tedious with anything less. A project which knows
who's offering the best deals on everything from ISDN to leased
lines, has tested and assessed routers and hubs and knows
what to do in an emergency is more likely to receieve funding.
Its that simple. If you didn't understand this paragraph you
are already in trouble....
The whole point of the Internet is its cheap and accessible
all the time to everyone. Make sure that your supplier offers
value for money and is accessible all the time. Time is the
most precious commodity in this game.
How?
If you are lost the best place start is professional computer
magazines. After a few months of background you will be ready
to begin analysing the items your project will need and performing
cost analysis...
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