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asset-light
/ˈæsɛt laɪt/
operating with minimal owned assets
The company adopted an asset-light model by outsourcing production.
The company minimized its owned assets by relying on external partners for production.
Business
formal
Operating a business with minimal ownership of physical or capital assets, often relying on outsourcing, leasing, or partnerships.
Tech startups often follow an asset-light strategy to reduce overhead costs.
Tech startups minimize owned assets to cut expenses.
The airline industry is asset-light because it leases most of its aircraft instead of owning them.
Airlines reduce costs by leasing planes rather than purchasing them.
An asset-light model contrasts with asset-heavy models, where companies own significant physical or capital assets.
Collocations
asset-light modelbusiness strategy minimizing owned assetsasset-light approachmethod relying on external resourcesgo asset-lightadopt a strategy with minimal owned assets
Synonyms
Antonyms
Pro Tip
Use in business contexts
Use 'asset-light' to describe companies that minimize owned assets, such as tech firms using cloud services instead of owning servers.
Gold Rule
Contrast with asset-heavy
An asset-light company owns fewer assets than an asset-heavy one, which typically owns large physical or capital assets like factories or machinery.
Word Origin
Compound of 'asset' (valuable property) and 'light' (minimal in quantity or weight), first recorded in business contexts in the late 20th century.
Usage Notes
Common in business, investment, and finance to describe companies that avoid owning assets directly, instead using third-party providers or leasing arrangements.
Word Breakdown
asset
valuable property or resources owned by a company
nounlight
minimal in quantity or weight
adjectiveEnglish Dictionary