The Guaranteed Way to Reduce Risks in Business

capital investments

When you’re thinking about launching a new idea or business, you have to try and guess your capacity, and that really is quite difficult to do without knowing what your customer response is going to be, and so you invariably end up making a projection that looks something like this, but more often than not, your actual demand looks something more like this.

What this means is that initially, you are sitting on a lot of wasted capital and resources and then if your project does take off, you are under provisioned, meaning poor customer experience and a loss of sales. You then go into panic mode to somehow get a hold of that extra capacity – and that almost always results in you overpaying and over-committing. This is why launching new projects or new business is such a high risk, because: Your investment is based on a guess, on a prediction of sales. Naturally, with this high risk comes a fear of failure, fewer project launches and thus, in turn, stifled innovation. With a cloud company, however, you no longer have to guess your capacity.

Because the cloud is so much faster, your level of investment no longer equals predicted demand, but rather now equals actual demand and so rather than laying out any heavy upfront start-up and capital investments, before knowing how you are going to use it, you now instead pay as you consume, significantly reducing your level of risk. A cloud company takes you from this to this. Our clients often tell us that their biggest business wins come from their own team’s competence to deliver new and innovative ideas. A cloud company encourages this creativity as your team is now able to focus more on its differentiated value rather than the day to day heavy lifting of management and maintenance.

This results in a dual benefit. Innovative ideas begin to flow more freely, and the creative ideas that you come up with can then also more easily be experimented with as they are no longer constrained by high risk, resources or cost. Your successful ideas can seamlessly be ramped up, while those that fail can quickly be scaled down, without resulting in any collateral damage. This increased level of experimentation and the ability to now deploy faster to market results in greater innovation for your company. No longer be inhibited by your fear of failure and realize your true entrepreneurial spirit with a cloud company.


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