Assets are important in business, for they are what holds most of the value. If you are concerned even a little with making your business a financially strong one, then you need to have a good understanding of your assets and how to make the most of them. It is surprising how many entrepreneurs do not really grasp the concept of assets, or understand fully in their own business what is an asset and what isn’t. Put simply, an asset is anything that holds value for your company – but there is much more to it than that. In this post, we are going to look at some of the things that you should know if you want to make the most of your business assets.
Tangible & Intangible
There are two main types of business asset, and understanding this basic distinction will put you on a good head start to making the most of them. Tangible assets are those which you can see or even touch. This cold include buildings and property, cash in hand, computers and other machinery – and even stationery. An intangible asset, by contrast, is something that is not physical. Patents, intellectual property, verbal agreements, data and other things of this nature all fall under intangible assets. The latter might be harder to grasp, but both are equally as important in terms of your capital and cash flow – and many businesses will get more from their intangible assets than their tangible ones. Knowing the difference, however, can make a huge difference in terms of helping you to separate this from that – and that is going to be an important first step.
Identification Of Assets
At some point early on in your business, it is worth sitting down and figuring out what assets you have to work with. The better you know what you really have, the more of a controlled grasp you are likely to have over your own business, so this could prove to be essential. If you want to know what assets you have, the best way is actually to have started cataloging at the very first day of your business trading. But if you didn’t do this, you can still have it done – it will just be a little harder. You need to go around your business and literally count what you have to count as an asset. This means every pen and pencil, every piece of valuable data – everything. It might take time, but this will at least show you why stock control is always such an important thing as well for an early business. Do this, and you will have a better sense of what assets you have. That will put you in a better position to make good use of them should the time come to do so. But what does that really mean?
The Value Of Your Assets
Whatever assets you identify in your business, you need to be sure that you are making the most of them. For the majority of them, you will probably just let them sit there for a long time. There is not much use in selling off that which you are using for your business day by day, after all. But if you do one across anything which you could benefit from selling, then that might be one of the best things you can do for the future of your business. You can sell anything that might be valuable, and it is worth finding that value beforehand to really make sure. Once you decide to sell something, you will need to ensure that you are getting the best possible price for it – otherwise there is little point in doing it at all. You might decide to sell a patent, for example, or perhaps you are interested in selling some of your machinery, in which case you will want to find a wholesaler who will give you a good bulk price. Whatever you sell, be sure that you are ready to do so, and make sure you get the best price you can. These two factors make all the difference.
With the above being fully understood, you should find that you are able to make much more of your assets. That will make for a stronger business on the whole, and will mean that you can plan for a much brighter figure within your company.