Etini
Valued Contributor
Economies of scale is the cost reduction advantage that big firms and companies enjoy by virtue of them being involved in large scale production. While it is operationally meant for big firms operating and producing in a large capacity, small businesses can tactically take measures to enjoy economies of scale. Those measures are:
1) Joint order of production inputs with similar businesses: This would help all the small businesses in the joint order to reduce cost because they would be given discount due to bulk order.
2) Use cloud computing to automate some processes: This would reduce inefficiency and frees up space for employees to focus on more important tasks. It also reduces the cost of hiring staff.
3) Shared resources: If possible, share office space, power and tech resources with other businesses around to reduce the cost of utilities.
1) Joint order of production inputs with similar businesses: This would help all the small businesses in the joint order to reduce cost because they would be given discount due to bulk order.
2) Use cloud computing to automate some processes: This would reduce inefficiency and frees up space for employees to focus on more important tasks. It also reduces the cost of hiring staff.
3) Shared resources: If possible, share office space, power and tech resources with other businesses around to reduce the cost of utilities.