I started formulating multitude of ways in which market spaces can be found where businesses could be set up successfully. One of the most basic step is to identify the fundamental nature of businesses and in-fact the sector your businesses is going to be.Each sector in itself has some fundamental ways of transacting, one that has not changed since decades and is only modified in diverse ways.
Before the product comes into picture , a specific need to be modernised has to be identified. The products mostly quantifies properly only in that particular case.
Look for areas in the market that remain idle in totality. IF any particular asset in the market earns money during certain periods of time only and the remaining time is left idle then you have a ready to monetise space. Its like putting up ATM machines between cracks of buildings. It adds up to the value of the building and is generating revenue in itself.
A double whammy benefit by utilising the non value adding assets. And as we clearly understand that each asset can be incoming generating if used in a recurring profit generating model.
Uber was successful into utilising these NVA’s , when it identified a very simple phenomenon.
It saw that a lot of hotels have a fleet of vehicles under their banner name ranging from economical sedan’s to luxury BMW’s depending on the brand and costing approach of the hotel. These cars are not owned by the hotels but belong to a fleet management company which leased their cars to these hotels. However when these cars were leased for the purpose of providing travel facilities to the hotel users, they were mostly idle for about 40% to 50% of their day.
Uber looked into that idle time and decided to use that time for the benefit of the owner of the asset and subsequently use it to their advantage. When those fleet management companies were asked to allow their assets to be used in that free time , with a structured payment system and technological reinforcement ,they decided to pounce on that offer.
And then this offer was extended to other car owners who cudn’t help but take the offer in optimism.
Such monetisation of supposedly fixed assets was highly disruptive for the existing system , it was an impact not only on their economy but also on the ego of the orthodox system. Working within cracks in magnitude usually causes disruption and in today’s environment disruptive businesses are valued high.
NVA utilisation is profitable and highly engaging when monetised efficiently.
Look for spaces within buildings and set up your model inside it.