“Form of Value #6: Lease”

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What is a “Lease”? (Form of Value #6 of 12)

“The human species, according to the best theory I can form of it, is composed of two distinct races: the men who borrow and the men who lend.” — Charles Lamb, essayist

Key Points:

• The lease is the form of value where you acquire an asset and then allow another person to use it for a specific period of time in exchange for a fee.
• The keys to the lease are:
  
  
  
  • Acquire and asset people want to use.
  • Lease the asset to a paying customers on favorable terms.
  • Protect yourself from negative events, such as damage or loss of the asset.
• Leasing benefits the consumer by allowing him to use an asset without paying the higher price to acquire it.
• Because assets have limited useful life, be sure to charge enough to cover the purchase price and repair and replacement costs before it wears out or is lost.

Questions for Consideration:

• Does delivering value via a lease make sense for your business idea?
• If so, what do you need to plan for to make it successful?

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