<Venture Capital, Supply Chain Cost Reduction Analysis>

<Introduction>

With so much money 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:

1. Have you reduced your spending and your planned spending as low as possible?
2. Have you evaluated manufacturers and suppliers to vet their products and services and vitally their service levels?
3. 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 this year, 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...