Difference between Cost and Value
The first thing that should be understood when looking to make your operational capital go further is the difference between the cost of something and its value to your business. Obviously, for the big purchases, you do your best to understand the potential value of the investment, otherwise you wouldn’t pull the trigger on it. Today, it’s important for businesses to look for value in every single investment they make. This means making cuts to even long-standing programs that aren’t essential to the business.