A company with minimal capital requirements Software companies are traditionally lean and mean fighting machines. The up-front development costs can be significant, but once the product is selling, the production costs are minimal. Also, there's no plant and machinery involved to produce the software goods. This is outsourced to third parties. From 1998 operating profits of 98m, just 10m was spent on fixed assets.
Lean companies have more cash to invest in the business to fuel future growth.
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