“An Investment with Asset light model”
Inspirational stories, business stories are great things for budding entrepreneurs but that’s not enough for starting a business…
You’ve to learn everything which are parts of business activity. I’m discussing a little investment strategy that I learned. Business becomes easy when you indulge or sink in “To learning business”. It is easy to understand business but hard to manage.
This is very important for the entire budding entrepreneur, A person who wants to become an entrepreneur.
What is an Asset? An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit (Investopedia).
If you want to boost your business, want to do business beyond boundaries, trying to scale up your sales, making higher profitability, and making your brand. Before all this, first, you have to know about the “Asset light business model”. This strategy is to outsource the major business activity or cut the cost of an operational business expense.
If I take examples of big multinational companies, e platform business likes Alibaba.com, Airbnb, Uber, Careem, McDonald’s, KFC, Subway, and many more. They succeed to manage their investments. If you don’t know: How to invest? Where to invest? I think you need to step back and learn investment techniques. Asset light is cutting your biggest capital expense from your business. Sounds crazy? Yes right! There are many companies as I mentioned above who successfully implement the Asset light models.
We all know how Apple Inc. is successfully doing business around the globe. Apple Inc. only manufactures products, making designs, doing marketing and innovation. So who assembled iPhones? Foxconn. Foxconn assembled iPhones. Through this Apple Inc. Cut major capital expense. Airbnb, Inc. operates an online marketplace for lodging, primarily homestays for vacation rentals, and tourism activities. But Airbnb does not own any real estate or hotels but plays a major role in the hotel industry. Alibaba.com is the biggest marketplace for retails, e-commerce, you can easily find any product b2b or b2c. But Alibaba.com doesn’t own any product nor manufacturing product, Alibaba.com successfully won the implementation of the Asset light business model. Like Uber or Careem doesn’t own any cars they are just offering car services through an application but they invested in drivers or captains. McDonald's, KFC, Subway scale up their business by offering franchises all over the globe. This is also known as the Asset light business model.
Outsourcing your business major activity may save your biggest capital expense. Business success isn’t easy yeah but it’s possible through techniques, experience, and expertise.
#AbdullahFarooq #BusinessSpeaker #AFG
