Increase Your Business In Low Capital With This Business Model.

Increase Your Business In Low Capital With This Business Model.

Increase Your Business In Low Capital With This Business Model.

Every businessman wants how to grow his small business. But due to lack of capital, his heart's desire remains in the heart. But in the changed situation today, everything that seems impossible can now be possible. Then, even if it is a small desire to give small business a huge features by investing at least capital. Let us know how a small business can be expanded even in less capital.

1. Asset Light Model.

Today all the top businessmen do not invest much capital in their business. Today's asset light model is being used a lot. This is called the fly light model. That is to get maximum return on low investment capital. Today this system is being adopted in most industries. For example, the world's largest messaging company WhatsApp has its own server Zero, but they make their own server on your own mobile operating. They do not even have 200 employees all over the world. This is the case of Uber, the world's largest taxi service. Uber does not have a single taxi, there is no driver, but his business is running at the top. Similarly, Alibaba, Bata, Apple Mobile have nothing of their own, are making a lot of profits by just moving goods from here and there. This is called the fly light model. If the asset light model focuses on its expert, then the promoter and investor return of investment automatically increases.

Flight light model has three advantages.

High Return on Assets: Shows how much profit a company can make by using the assets it owns, such as plant, machine, office building, car, etc. This gives them good returns and assets.

Control Profit Fluctuation: Nowadays there is a lot of fluctuation in profit. The world is changing fast. The choice of everything is getting faster. Today, WhatsApp is considered to be the world's largest messaging power, yet today 15 teams are active in Silicon Valley, who are looking for ways to bring faster options than WhatsApp. In this way, there is a huge fluctuation in profits today.

Scalability Driven Cost: It shows how much profit a company is making by using the assets it holds with any company. That is, how much the management of a company is able to earn profit by using its assets or resources.
In this way, we can know that the asset light model will only scale up the company, without any additional investment. This will only increase your profit.

This can be understood by these five examples.

Franchising:

Currently, franchising is a very easy and fast way. Today, there is an asset light system for both franchisers and franchisees. The capital load of both becomes share and business increases. While the franchisee does not have to invest capital for the new setup, the franchisee does not have to spend time and money for things like sales, marketing, proprietary, tools, training, learning for the new setup. The job of a master franchisee is to train the main power, give corporate strategy to it and support it in its sales, marketing, branding etc. In return, he gets a license fee and later a monthly royalty payment, which is a percentage of his profit. The franchisee works and the franchisee earns the percentage of profit. Investment of both becomes a share. For example Pizza Hut, Domino, Subway, McDonald's etc.

Outsourcing: 

By outsourcing, you make your cost less operational efficiency. For example, Apple phone, which he makes, but not the Foxconn company. HMD Global's Nokia and Saumi phones also make Foxconn. In this way, while Foxconn gets a chance to master in making mobile, the original mobile company gets the opportunity to master in building and selling brands. Costs are saved by sharing work and responsibility.

Asset Sharing Model: 

When the price of an asset is high, two or more companies share it. Many big oil and natural gas companies share the use of expensive machines. That is, 6 months in a year, one company and 6 months another company. This reduces the cost of expensive machine. Oyo has done the same thing. He took the pre-built property in the stock, his benefit was that the person whose property was vacant, also started earning and the business that was to be built, he also started getting profit. Mahindra Logistics and other big companies are doing the same.

Pay-Per-Use: 

Suppose your company has a corporate office in Mumbai, you have a manpower of 250 people, but if you want to open a branch in places like Chennai, Kolkata, Delhi, Bengaluru etc. then you have new office concepts. . Pay-per-use means that you will have to pay only the amount of work station you will get. From printers to wash rooms, pantry common, stationery, internet, keep all these for common use. In this way you also took office and the cost of office setup was also minimized.

Licensing in and licensing out:

 Many companies use this fund to save their RLD cast and brand development cast. That is, if the company licenses a product from you, then it is called licensing in and if the company is giving license, then it is called licensing out. In this way, cast sharing of companies takes place.

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