An asset-light business model offers startups unparalleled flexibility and scalability while minimizing capital requirements. Bryan DiGiorgio, Founder and CEO of 1840 & Company, shares how his company stands out as a progressive force in the global workplace thanks to its “variabilized” workforce model, incorporating strategic outsourcing and offshoring, underscoring its commitment to empowering startups to scale efficiently, fostering diversity, and driving innovation in the evolving market landscape.
KANSAS CITY, KANSAS, JAN 22 —
More and more companies are considering an asset-light business model to better navigate recent market shifts. One survey found that 31% of CEOs said digitization and technology shifts have prompted them to consider asset-light strategies, 25% said the trigger is imperatives to meet customer demand, and 21% said capital requirements to fuel growth are driving them to consider such strategies.1 Boasting numerous advantages such as flexibility, scalability, and reduced capital requirements, 1840 & Company is strategically positioning itself as a pioneer in disrupting traditional workforce management. Bryan DiGiorgio, Founder and CEO of 1840 & Company, explains, “Being asset light IS risk management.”
In an era where agility and efficiency are paramount, revolutionizing the global workplace through an avant-garde asset-light business model is essential. The cornerstone of the strategy lies in optimizing human capital within startups. 1840 & Company’s “variabilized” workforce model epitomizes this effort. This innovative methodology, incorporating a seamless blend of outsourcing, staff augmentation, and startup acceleration, underscores the company’s commitment to enabling growth-oriented businesses to scale efficiently while conserving capital resources. This approach to business has far-reaching implications for founders, offering a multitude of benefits that can shape the trajectory of their ventures.
Key advantages include:
- Reduced Capital Needs: Founders with limited funds benefit from the asset-light model, needing less investment in physical assets for starting and growing their business.
- Enhanced Adaptability: The absence of heavy physical assets gives founders more agility to respond to market shifts and seize new opportunities, especially in rapidly changing industries.
- Easier Scaling: An asset-light strategy allows for faster, cost-effective expansion without the need for significant physical asset investment.
- Core Focus: Founders can focus on key strengths like innovation and customer service by outsourcing secondary activities, leading to more efficient operations.
- Lowered Risk: With fewer fixed costs, the asset-light model offers better economic resilience and stability against asset depreciation.
- Operational Efficiency: Outsourcing non-essential tasks leads to reduced costs and higher profitability, optimizing primary business functions.
- Global Flexibility: Asset-light businesses can easily move into new markets, benefiting from today’s global economy’s mobility.
- Supplier Reliance: Dependency on suppliers and partners increases in the asset-light model, necessitating effective communication and collaboration to manage risks.
- Competitive Pressure: While lowering industry entry barriers, the asset-light model also increases competition, pushing founders to continually innovate.
Embracing an asset-light business model can empower CEOs to navigate the complexities of today’s business landscape with greater resilience, efficiency, and innovation. Recent analysis has determined that the more asset-light companies are on average, the greater their returns on assets, a finding that holds across industries.2 As businesses evolve, the strategic adoption of outsourcing and an asset-light framework is becoming increasingly indispensable for sustained success.
In line with its strategic goals, 1840 & Company aims to achieve organic growth, expand service offerings, and position itself as the go-to solution for startups seeking efficiency and growth in challenging economic times. “1840 & Company helps to bridge the gap to aid companies find the right people worldwide,” concludes DiGiorgio.