Because once you get big enough it makes sense to have specialists working on small parts of the business. Those specialists all should be creating more value than their cost.
Just think about the credit card side of the business.
- They should have one person who's whole job is to make sure their interchange charges are as low as possible.
- They likely have a lot of float, money from where customers have paid for stays upfront that they hold onto until the housing providers get paid. If a billion dollars flow through their hands a year and they pay 15 days after the recieve the money, there is $41 million in float that someone needs to invest for the short term.
- An entire team of people likely has to deal with credit card fraud.
Any webish company past a revenue range is going to have these issues to deal with.
Comments
Because once you get big enough it makes sense to have specialists working on small parts of the business. Those specialists all should be creating more value than their cost.
Just think about the credit card side of the business. - They should have one person who's whole job is to make sure their interchange charges are as low as possible. - They likely have a lot of float, money from where customers have paid for stays upfront that they hold onto until the housing providers get paid. If a billion dollars flow through their hands a year and they pay 15 days after the recieve the money, there is $41 million in float that someone needs to invest for the short term. - An entire team of people likely has to deal with credit card fraud.
Any webish company past a revenue range is going to have these issues to deal with.