What is my spare capacity and how is it turned into cash?

The following slides show how most businesses have an unused perishable asset that they could utilise to improve both their cashflow and increase their profit. yewtrade provides an efficient mechanism for doing this. Yewtrade gives you access to a network of customers that can give you something of value for your spare capacity that you can then use to pay for other services your business would have otherwise paid cash for, thus converting that spare capacity into cash which has been preserved in the business - where it belongs.

  • What is Spare Capacity?

    Spare capacity is the amount of extra business you could take on without increasing your fixed costs.

  • What are the properties of my spare capacity?

    Spare capacity is a perishable item. That means you have it now and it has some value. But if you don't use it now you will lose it forever. You cannot get it back. For example, a spare hotel room can be rented out tonight but it can never be rented out again for tonight so tonight's spare capacity will be lost forever. This principal applies to all services.

What is Spare Capacity
  • Before the Trade

    From your turnover you need to pay for your business expenses. What is left is your profit.

  • Post Trade

    After selling some of your products or services on yewtrade you have used up some of your spare capacity and therefore increased your turnover. This extra turnover can be measured in yewtrade pounds or Yews. Your normal business isn't affected.

  • After Trade

    When you use the extra Yews to pay for some of the business expenses you would ordinarily have paid with sterling then the extra cash you have conserved in your business is seen as increased profit.

How Trade Effects Profit