Underutilized Fixed Assets – kwokchain

BRANK

Every marketplace is unique. But every successful marketplace is unique in the same ways. Historically it’s very hard to find a successful marketplace that wasn’t built on an underutilized fixed asset.Airbnb is a canonical example of this. Someone has a guest bedroom. It’s always there, a fixed asset. But it’s unused and they make no money from it. Until Airbnb, they may not even have considered that they could make money from it. And then suddenly, with Airbnb it generates hundreds of dollars for them. It’s like an ATM they didn’t know existed in their guest room.What Exactly are Underutilized Fixed AssetsTo understand underutilized fixed assets (UFA) is to understand each component of the term.Fixed vs Variable AssetsFixed assets are those where the cost of them is constant, and independent of usage. If you buy a pan, it is a fixed asset. You have already paid for the pan. Whether you use it once or a hundred times, the total cost does not change. Having gasoline for your car …