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Lean and mean

Discussion in 'Planning Your Business' started by remnant, Feb 27, 2016.

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  1. remnant

    remnant Member

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    I have made an observation that some of the most profitable businesses operate with low capital but high turnover. They enjoy a definite advantage over large corporates which have to deal with high overheads and therefore enjoy economies of scale. The capital invested is very low so there is less risk in case of adversity.
     
  2. T J Tutor

    T J Tutor Member

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    Have you some examples? How do know these companies are operating with a low capital threshold?
     
  3. onlinecashcity

    onlinecashcity Member

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    All of the businesses I can think of that make billions have huge amounts of capital.....
     
  4. arthnel

    arthnel Member

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    That would depend on so many factors, but mainly the product or service would need to have low or zero competition while at the same time a very high demand. It's hard to imagine any new or existing products that could turn small companies with low capital into big million dollar companies overnight without these terms being met first. Examples would be nice.
     

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