Economic Minimum Principle

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The economic minimum principle, respective the input-output-relation describes the effective and efficient handling of limited resources. It focusses on the economic use of resources to maximize usability and profits of the business organisation. Many startups use the economic minimum principle, if their resources, time and budget are limited.

General information

Economic actions aim for the highest possible effectiveness between result and effort

Business administration disciplines know 3 forms of economic actions:

- Economic minimum principle

- Economic maximum principle

- Economic optimum principle

Efficiency = Result / Effort

The economic minimum principle

With the minimum principle, a defined goal or specified output should be generated with the minimum of input factors

The economic maximum principle

With the maximum principle, the maximal output should be generated with available input factors

The economic optimum principle

With the optimum principle, a variable output should be generated in the optimal way with variable intup factors

Business Evolution Management Framework (BEM) and the Economic Minimum Principle

Most projects of startups face comparable conditions:

- Limited resources

- Limited time

- Limited budget

The Business Evolution Management Framework (BEM) is mainly specialized on the economic minimum principle

up4distribution and the economic minimum principle

up4distribution fulfills all requirements of a startup in relation to all three economic principles

Conclusion

To reach an optimal input-output-relation, the BEM Framework supports entrepreneurs with all 3 economic principals to overcome limitations and challenges.

Inspiration & more information

- up4distribution -> the agile startup incubator and accelerator