The resources that are to be used in the business need to be recruited based on service and cost. These resources, which will be your core business service providers, will only be used when required and hence the variable cost.


This also means that when there is zero activity there will be zero cost to you and as far as service goes your hand picked contractors will be highly customer driven.


Not only will you not have staff, vehicles and equipment idle and costing money when you aren?t busy but these assets will not need investment in management and maintenance.


3. The only fixed overhead you should have to invest in, remembering that your main business activities would be carried out by contractors with their own vehicles and equipment, should be office furniture. Expensive office equipment could be employed on a hire-maintenance contract or such like.


This could even be extended to office staff which could be hired from agencies so you aren?t landed with employee hassles and absenteeism.


A significantly important aspect to the success of this model is not investing in assets which always require managing, servicing or replacement.


If this model is applied correctly it should leave the key personnel time to manage the business without being distracted by less important issues as well as leaving the business with unlimited growth prospects without being restricted by funding constraints.


This business model was responsible for my bank overdraft being transformed to millionaire status and can enable anyone to start out with low capital investment, low risk but with a real opportunity at huge success.


The author, Mark Bellinger is a successful businessman, internet entrepreneur and creator of the following websites: http://www.income.za.net - http://www.internetbusiness.co.za - http://www.onlinesynergy.net


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