student asking question

In business, what does "asset-light business model" mean?

teacher

Native speaker’s answer

Rebecca

An "asset-light business model" is a type of business that requires less or not much capital expenditure to start and keep it running. Fewer funds to operate the business. Ex: By starting a remote company, we already know that it'll be asset-light since we won't have to fund office spaces. Ex: We need to reframe the business model to be asset-light.

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