We learn from failure not from Success.
When I opened my first business I followed a traditional method of business which was asset heavy business model . The first thing i was to take costly office in posh area. I hired people and started operations and it started doing well. As profit started increasing I hired more people for manual job and took more office space. My cost started increasing per month through staff, space and product which I purchased to sell. After two year I had to close my first venture. Later we identified many reason for the failure.
Prime reason was we were doing asset heavy business with less capital and were not using technology for scaling business. Automation of whole process was pretty less too. We were using capital for fixed monthly cost and purchasing product to sell in brick and mortar model.
Major challenge of asset light business model is to built automation & technology. It also needs continuous check on new technology and cost of human capital, infrastructure and in efficiencies.
Lets us understand asset heavy business model
Generally inflexible, thus not suitable for industries with rapidly changing industries – tech is the first that comes to mind.
Low return on assets: Even though there are higher gross margins, generating a return on the enormous upfront costs is tough. Cost to acquire the assets remains a challenge.
No rapid scalability: Asset heavy businesses are not fast & scalable because of the high upfront costs.
The traditional asset-heavy franchise business model that used to be at the top of everybody’s most-admired lists is looking old-fashioned, slow-moving, and inflexible.
The Disadvantages of these businesses are :
- Significant capital expenditure is required upfront. It means you need deep pockets to start and succeed.
- As a follow up, a failure in a project, plant or idea means you end up with significant losses. Much of the initial capital is financed by external parties and hence you can get into deep debt.
- The payback periods tend to be long. Long means very long. You may take many years to even break-even due to the large negative initial cash-flow in your ROI Calculations.
This doesn’t mean asset heavy business model is not successful. We have lot of examples which says they are successful in case of
You need deep pockets, patience, and conviction that you will make money in the long run. Yo should have it before you start an asset heavy business.
Examples of Asset heavy business
Hotels and restaurants
Malls Lets take an example
- School need heavy infrastructure including land and building
- Heavy monthly fixed and recurring cost per month
- Break even may take years and years
- Student acquisition
- Digitization cost is very high
Time has come to work like New age entrepreneur not Lala type business model
After closing my first business I started searching for Co founder. As i had idea of my new venture regrob. One day I met Ashish who is my co founder now, in a party through common friend Mr Rohit. Rohit and Ashish were batch mate in Indian military academy Dehradun. We discussed on business and I came to know he had also closed down his business due to same mistake of asset heavy business model. He had started Offline business and had to close because of heavy infra and missing of technology.
We decided to work together and came up with new business model. I started networking again from IIM college alumni to brain storm on my business model. 6 month we spent almost on building technology, business model and doing lot research on same. We picked up some case studies from International universities Ivy league and met few international professor and few entrepreneur from silicon valley. During this journey we got good mentor from technology & management side like Sukanta dey and Bhanu (alumuni of IIT Kanpur), Chirag (Ex snapdeal director). We got a pool of successful people who mentored us through journey in building product and technology.
We launched our product and we got tremendous success. After 1.5 year we were called by IVY league university to present our business model though our network. We went and got 1 st prize and our case study was published in thesis. Model was named as asset light franchise model. This gave us lot of freedom, money and successful venture for us and for our partners franchise.
We want to start as new age entrepreneur and business model on asset light franchise model
Asset light model gives better return, lower profit volatility and higher scale of sales.
Before I come to Asset light franchise model Meet our team
Our Awards For Top Performing Partner and Fastest Real estate franchiser.
The real estate business always attracted me. As I saw entrepreneurs create huge profitable businesses through real estate.
We found real estate brokerage is a $ 6 bn opportunity in India. We started building a lean business model to work on this opportunity.
At Regrob, this took us year and year to build asset light business. This is the reason why all our franchisees are profitable and growing even after many challenges which are part and parcel of business.
2017 we planned to come with IPO but postponed it for few year due to market. A we need more capitalization suggested by our mentor and technical analyst.
Our Asset Light Franchise Model
- We do not own any product. This is not burden on company as well as on franchisee.
- We have less recurring cost.
- Break even is faster within year or less.
- Scalability is fast and customer acquisition is 24*7 because of technology.
- Total automation of business process.
- Technology implementation is customer oriented.
- Multiple revenue model on same customer.
- Plug and play model for franchise and rest we take care.
We operate from Co working space. Earlier this concept was new but it is light method to run your operation. As we grew and expanded your offices, still we work in same method like new age entrepreneur. We recommend also same to our partners to work on same method of new age entrepreneur.
We believe as we grow we will expand.
We partnered with Noida real estate airport forum for upcoming International airport. .Meeting With UP Chief Minster Yogi Aditya Nath .
Regrob Is IIT and IIM alumni Venture
Regrob is India’s leading tech enabled brokerage firm. Regrob is online to offline (O2O model) in real estate industry
To talk about how we can work together to build a profitable business for you!
Plz visit – Start Real Estate Franchise Business in India
So we have created a ready-made business model for people looking to start their entrepreneur journey.
One can join hands with us. We provide all plug and play models to work. We have multiple franchisee options like Master franchisee, city franchisee, and area franchisee to choose from. Entire India we are available.
- Master Franchise fees-30 to 50 lakh
- City franchise fees-15 to 20 lakh
- Area Franchise fees -8 to 10 lakh
Our focus is – Multiple Revenue Streams | Tech-Enabled Business | Strong Marketing | Lean Business | High Margin & Profit for our Franchisee Partners
Ashish Kaushik -Co founder of Regrob I Entrepreneur | Marketer | Growth Hacker | Speaker | Triathlete
I am Fond of Bikes, cycle and custom jeep.
Cycling is my passion.