Assets are those resources that we control as a result of our past actions, from which we expect to get returns from in the future. I am not going to bother you with technical terms here. My aim is to make sure that you understand how important it is to manage your assets properly. I will try as much as possible not to let my training as an Accountant affect my explanation here I promise.
To start with, I will give a simple definition of what an asset is. An asset is any resource by us that we expect to get future or immediate economic benefit from. This can tangible or non-tangible asset. Common sense will tell us that these resources if not controlled or managed properly will not bring the desired result/ benefit. So in this article, you will learn to mange your assets for optimum result.
Tangible assets are those resources that we can touch and feel. The rule of thumb here is to make sure you always go for the best quality. Quality saves- both Time and Money, even stress. Is not enough to only go for quality, the following tips are also invaluable.
Always employ the service of a qualified technician to service and maintain the asset whenever the need arises.
- Insure the asset(s): this will help re-instate the asset back to its original position in the case of the occurrence of the event insured against.
- Provide physical security: is a good practice to place your tangible asset under lock and key when they are not in use. Large companies even employ some biometric measures to protect their assets.
- Motivate your staff to put other asset to its best use. Your staff is your most important asset that never appears on the balance sheet. Take good care of them, and they will surly take good care of your asset (business in this case).
- Do not use your asset beyond the threshold specified by the manufacturer. Your staff inclusive.
Applying the above simple yet powerful techniques will help maximize the returns from your fixed/ tangible asset without wearing them out.
Intangible assets on the other hand are resources that we cannot touch or feel. Some examples include: time, patent, trademark, ideas etc
One funny thing about non-tangible asset is that once you don’t care for it, it quickly goes to another owner that will value it. Time management is one area that we cannot allow to go unattended to. Successful people will tell you that time is money, take care it today and it will take care of you today, tomorrow and beyond.
Patent and trademark are intellectual asset/ property that are mainly protected by law. They emanate from ideas. Good ideas if well managed translates into intellectual properties. The fact that the law protects them does not mean we are not going to manage them. Good practice in the management of non-tangible asset includes management of brand. This applies to both individuals and corporate bodies. Manage your brand and you are just fine.
Money is another asset that is worth mentioning. Money is the most liquid form of asset. It is the oil that greases the wheel of every other asset. Some technical skills are involved which is beyond the scope this article. But not too worry, as long as you make this site a regular visit, read all relevant articles, those skills will in no distant time be yours.
I will like to state it clearly at this point in time that asset management is not something you can master in one article like this. The secret to mastering it is to LEARN. So always make it a date to come back here for more insight. Stay motivated and enjoy.