Business assets are things your business owns, benefits from or makes. Many of them can be directly responsible for doubling your company’s profits.
Here are five of those crucial assets and why they’re so instrumental in helping the enterprise’s bottom line.
1. Real Estate
Business real estate falls into numerous types. For example, you might have a downtown office space, plus a distribution center located on several acres of land. The company may also have a manufacturing facility classified as a real estate asset. Real estate can help grow your business by ensuring it has the space to operate in ways that foster growth. For example, larger real estate may allow you to take care of more needs internally rather than outsourcing to providers.
If you’re looking for real estate now or will do it soon, keep both your current and future needs in mind. For example, if your company is in a growth phase, buying more real estate than you require currently could be a smart way to get prepared for the future.
The real estate’s location could also be a crucial consideration. For example, do many of your employees get to work on their bikes or via public transportation? If so, having your main facility in a somewhat isolated location may not work well.
No matter what kind of business you have, it almost certainly requires computers. Plus, if you still keep lots of records in a non-digital format, that could introduce preventable business risks. For example, someone might spill coffee on the only version of a physical document or accidentally throw it away.
As you ponder what kinds of computers to buy, consider if laptops or desktops would be more practical. Figuring out how much time your employees typically spend in the office versus elsewhere can help you make that determination.
Think carefully about the possible ramifications of purchasing the most basic options, too. There’s a recent trend of companies investing in high-end laptops for workers. Leaders find that decision boosts productivity and morale and can even save the company money in the long run. For example, people at all levels of an organization often use software that requires lots of processing power.
Equipping employees with computers that can adapt along with their duties puts your organization in a great position to keep current clients happy and attract new ones.
3. Cargo Vans
The convenient thing about a cargo van is that it brings people and products directly to the right places. The specific ways you can use cargo vans depend on your business and goals. However, after giving it some careful consideration, you’ll likely discover that these vehicles break down barriers that otherwise have adverse effects on your profits and the customer experience.
For example, maybe you run a furniture retail business. Using your cargo van for deliveries could help you offer another service to customers, helping them see that your business is more appealing than other options. Additionally, if you frequently rent cargo vans, those costs can add up quickly. A cargo van also presents fantastic branding opportunities. If the vehicle’s exterior features the company’s logo and contact details, it works as a natural advertising mechanism as the van moves through the area.
The cargo space, gas mileage and price are a few things that purchasers often think about when evaluating the different cargo van models. Resale value may also matter to you. Most cargo vans lose 50% of their value three years after you buy them. However, how you care for cargo vans is also a major influence on resale value. Installing protection for the floors and walls can help you keep the vehicle in good shape even as you use it regularly.
4. Specialized Equipment and Software
Specialty equipment and software could become vital for helping your company profit. Accounting professionals usually classify software as an intangible asset. However, exceptions exist, mainly if you use the software to provide goods and services during your company’s operations. Getting help from an accountant when you list assets for tax purposes can prevent errors. In any case, having in-house equipment and software makes you better positioned to meet client needs immediately rather than looking for outside entities to help.
You may initially wonder if it makes more sense to rent assets than buy them. Bear in mind that buying equipment usually results in a lower lifetime cost than leasing. Purchasing also usually makes good business sense when you’re likely to use the equipment for a long time and clearly see how it will help your business profit. Moreover, many software packages offer automatic updates as new versions become available. Such features protect against obsolescence.
Perhaps you worry about the upkeep costs associated with the equipment. Some providers sell add-on maintenance plans. Those may make it easier to cover such expenses because they offer various types of coverage depending on what you’ll likely need. For example, one plan may merely provide periodic cleaning while another covers all preventive maintenance.
5. Office Furniture
Office furniture is a business asset that benefits both your employees and customers. Suppose a potential client comes in and sees an inviting environment featuring comfortable, high-quality furniture. In that case, they’re more likely to conclude that you take pride in your company and start to build trust. However, if they walk into sparse surroundings with only a few pieces of mismatched furniture, they might worry about your business folding overnight.
From the employees’ perspective, the right office furniture could give them the support and stability they need to maintain high output. Beautiful and functional furniture could also enhance your hiring efforts. When a potential employee tours a facility, they automatically start forming opinions. Office furniture could play a significant role in ensuring they’re primarily positive.
As you make office furniture purchasing decisions, think of the ways that carefully chosen pieces could facilitate your company’s operations. For example, do your employees often have group meetings? If so, large tables with chairs around them support those gatherings. Similarly, maybe you believe it’s best to create a dedicated area for meeting with new clients. In that case, balancing comfort with practicality could lead to great results.
Keep a Long-Term Mindset
The upfront costs associated with business assets may make it difficult to justify investing in them. That’s especially true if you’re on a tight budget. However, try to view the situation with a future-oriented view. Then, it’s easier to realize that you’ll likely notice advantages now and later.
You may also find it helpful to make lists of the most likely ways your company would profit from certain assets. For example, investing in a cargo van could let you bring more team members to a worksite. Then, your company can get the job done more efficiently without sacrificing quality. Alternatively, buying capable laptops for your team could help them run the software that helps them analyze circumstances and make accurate predictions.
Seeing the potential advantages written out like that should help you feel more confident that these assets will bring enduring benefits to your business and everyone it serves. You’ll probably find yourself feeling excited and hopeful about the future, too.