The cost is something that we all hate, but without the cost it is hard to gain revenue. The investors love entrepreneurs that knows how to reduce the cost so that there is no additional cost on the investors. However, it is very hard to find an entrepreneurs that knows how to benefit from reducing cost. The impact of reduction in cost can also increase the revenue, that is if the entrepreneurs have full awareness of the business that they are in. The example of increasing revenue is when you start the production within your company. For example if a coffee shop can roast their own coffee to reduce the cost of purchasing coffee, and at the same time increase revenue from selling packaged coffee. Another example is if the restaurants can have self service, it will help to reduce the cost of wages and as well as it is unique way of having fast food restaurants for the customers. Having said this, the restaurants can have an increase in revenue and reduction in cost by eliminating dishwashers and changing for takeaways. The dishwasher is a big cost to the restaurants, the dishwasher cost about $3000 and it it needs to be attached to drainage and to water supply. The cost of detergent is also reasonably high for commercial dishwasher, and the maintenance of hygiene is another problem which can have a high cost. All these can be eliminated by simply self service takeaway packs. These are the simple examples of reducing the cost but at the same time increasing revenue. Every business is different and it is important for managers to make proper analysis that requires outside the box thinking.
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