Before we can determine where to add value to a company we need to identify the value of current assets. The answer you are looking for is your ROA - Return on Assets.

The math is simple and it is nothing more than an extraction from your balance sheet. Once we know how well your investment into tangible and intangible assets perform, it will present the next question - what do I need to do to increase its value or what do I need to add to realize the full potential of my processes. The question is for next week.

Summary

The production of a product or service requires the investment in equipment, what are your capital investments to date to determine effective usage. How much did the equipment cost (don't consider platforms you lease or subscribe to), what is its life cycle before replacement, how often does it need to be serviced professionally (costs), what are costs incurred in your preventive maintenance system, what are the warranties/guarantees, does it require manufacturer training.

Creating Value Through Tangible Assets Today's show will start on the easier part of the problem - Tangible Assets. Here is a list of what is considered a Tangible Asset and the information is available on your Balance Sheet. This list is not inclusive of everything you potentially have, just what exists in most small businesses.

Topics: Cash Accounts Receivable Contracts Equipment Tools Furniture Real Estate Inventory Pre-paid Insurance