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5 Effective Strategies for General Contractors to Cut Costs

Strategy Driven

A lot of contractors subscribe to different software services yet don’t use most of them. In the former case, the owner of the project only has to pay a fixed cost that includes overhead and profit. This is not necessarily the most cost-effective approach. You can relocate the office to a location where the rent is lower.

Cost 58
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Business Plan Development: Know your Finances

Strategy Driven

This allows you to demonstrate gross margin: sales revenue less sales costs. Differentiate between fixed costs, such as rent and payroll, and variable costs, such as advertising and delivery. Some business planning software programs will help you make these projections. Create an expenses budget.

Finance 10
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Is Rooftop Solar Finally Good Enough to Disrupt the Grid?

Harvard Business Review

The costly and complex operations of transporting energy have made utilities natural monopolies, while regulatory barriers and the high fixed costs of building and maintaining regional electrical grid infrastructure have also kept much competition at bay. And SunPower, the second largest U.S. Meanwhile, utilities are not standing idle.

Energy 8
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Deliver Big Impact on a Small Budget

Harvard Business Review

We didn't want to burden the organization with fixed costs. Almost everything had to be free, and the few things we paid for had to be scalable so that the unit costs would eventually approach zero. Software development" and "hardware" are bad words. This removed the biggest bottleneck to innovation — us.

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Does Your Startup Have a Spending Strategy?

Harvard Business Review

After managing a sleeve of a successful hedge fund in London for five years, and building ample savings, Colin was ready for his own shop. So not only were the current fees too weak to support his fixed costs, but future clients were turned off by his apparently excessive tastes. The first is Colin. What can you afford to lose?

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What BMW’s Corporate VC Offers That Regular Investors Can’t

Harvard Business Review

This meant that the company was leaving out huge innovation potential — thousands of startups with billions of funding — that could help BMW innovate anything from core vehicle technology (batteries, sensors, artificial intelligence software) to manufacturing innovations (internet of things, cybersecurity, robotics).

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America's Cities Need to Get Smarter

Harvard Business Review

Meanwhile, declines in revenue and escalating fixed costs for things like public employee pensions and health care are crippling our cities budgets. In public safety, better analysis of crime data can lead to better deployment of the public safety workforce, lowering crime and reducing cost.