In recent years, start-ups have been receiving increased attention in many parts of the world. According to Startup India, India has the 2rd largest start-up ecosystem in the world; and is growing at a 10-12% YOY. Through innovation and scalable technology, start-ups can generate impactful solutions for almost all walks of life, contributing significantly for socio-economic development and transformation.
But start-ups need investment, a significant amount, specially in their early stage of existence to grow. While the numerous accelerator and incubator programs have made it easier for start-ups to gain access to funding, smart entrepreneurs know that when the seed money comes in, it needs to be spent wisely.
In any start-ups financial plan, there is always a push and pull between the CapEX and OpEX expenditures. CapEX expenditures (software licences, infrastructure etc) are necessary to set up your company. OpEX expenditures are on-going expenses (rent, utilities, etc) that may not directly make you money but their use does!
The continual conundrum of keeping costs low without affecting progress has given rise to a new market opportunity. Start-ups have begun to spot an opportunity in the allied ‘sharing or leasing’ industry. With the digital economy increasing the appetite for bite-sized spending and driving up the need for value addition, the largely millennial workforce in urban areas and metros has turned to options beyond traditional renting or owning.
Businesses providing ‘sharing’ services such as co-living, and co-working working spaces, furniture-on-rent, rental equipment and even co-kitchens are slowly mushrooming. And it’s a win-win!
Start-ups are happily taking advantage, while the sharing industry is growing due to the demand. According to Economic Times, the global sharing economy, touched $115 billion in 2016. By 2020, it is likely to reach $250 billion. This rising demand comes from the need to solve issues with the traditional rental model- a model of inconsistent rents, high brokerage, nosy landlords and long lock in periods.
Start-up owners no longer have to bear the burden of high CAPEx costs during set up, or long leases or buying inventory and equipment for operations. They simply have to adapt to the newer and modern ‘sharing’ business models, where rents and leases are for shorter periods, the interiors are mostly customized, solutions are personalised; and the smallest details are taken care of.
That new model has come in the form of co-sharing. Focus now is on building communities- dynamic networks of like-minded business owners, that not just benefit from the leasing services but from each other’s connections and experiences.
A2zOnRent is one such modern start-up providing leasing services across various products- from office and IT equipment, to kitchen fixtures to even sports equipment. With a stellar team, efficient execution of projects and a superb after sales service, it has helped many businesses and young start-ups with their rental requirements.
Read the case studies here to know more about the projects A2zOnRent has successfully completed.