Cost Cutting Dilemma

in LeoFinance23 days ago

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One thing about more modern companies, especially the ones funded by Venture Capitalists and Angel investors is that they see pretty unconcerned about the costs they incur. Most incur very significant costs over a period of time that superimposes on their revenue and you wonder if such companies will ever turn the wheel of fortune and make a profit.

My company is a lot more traditional in that regard even though attempts have been made to modernize and integrate significant digital solutions to their operations. They have spent a significant amount of money in technology upgrades over the last year, but we're still constantly reminded to be weary of costs at every given turn. This has nothing to do with the revenue they generate, but the old school, traditional philosophy they have that nothing is given and everything is earned.

I kind of like it to be honest. We see a lot of waste in today's business World simply because a company gets all this free money from angel investors. What ultimately happens is that those companies are almost never profitable even in the long term because they've incurred all these unnecessary costs. There is a sudden realisation of this when the funds start to dwindle and then the company does the hard reset they should've done since the very beginning, often when it is too late.

Of course my company can sometimes be extreme in this regard. There are basic things which cost considerations should be waived that they can be unyielding. While I criticise those areas, overall I'm quite happy with the aggressive manner in which they execute this practice. We shouldn't throw money around simply because it is available. It must be given due respect so it doesn't depart as quickly as it came.