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SCOTT CLANCY COFOUNDER BBX UK
Spare Capacity is potential income. How much is going to waste in your business? What is spare capacity and are you using it in your business? You may have heard of the buzz word spare capacity? So, what is it and what can I do with it? An effective way to find out if you do have spare capacity is to have a look at your business and decide, can you take on another client or customer and do so without having to outsource, subcontract or increase any of your fixed costs? So, what does this look like in the real world of business? Do you have excess stock or end of line stock? Do you have spare appointment time? An empty table at your restaurant or a vacant room in your hotel? What about a spare hour of consultation time or unfilled advertising space? If you can answer yes to any of the above, then you have spare capacity! All this represents lost revenue to you and your business. Almost every company both large and small have this and most of the time, it is your biggest unused asset. Why not make your spare capacity work for you?
But why care about this and is it relevant to your business? A significant aspect of spare capacity is the extra leverage it gives your business and YOU! Firstly, let’s assume your business is already breaking even, every pound earned (instead of going to waste as spare capacity) has massive profit margin potential as your fixed costs have already
been covered by your existing workload, therefore harnessing this unused potential allows you to boost your profits and balance sheet. An example of this might be a restaurant serving an extra table for £100. They would only have the ingredients as a variable cost and approximately £75 of the revenue is extra profit. That extra profit you can then use to offset your cash expenditure within your business. Win win! Secondly, if your company needs a capital boost, spare capacity could be tapped into like a reservoir of money. Let me tell you how. If you can manage more customers, BBX, a global business community, can help you harness the spare capacity. As a collaborative community, BBX can offer you guaranteed customers to fill up some of your spare capacity at your normal prices (so no discounting), therefore turning previously wasted infrastructure into instant profit. Additionally, assuming a capital boost is what you are seeking, BBX will give you an interest free line of credit to spend on goods/services you need from their community (therefore boosting capital) and to re-pay this all you do is supply your goods/services back to the community. This ensures you get the capital boost you are looking for, don’t pay any interest, get guaranteed growth to repay the line of credit. Collaboration is a growing force in commerce and having a BBX facility, even for a rainy day, is an asset to your business.
