First, let’s get to a definition of the word asset when it pertains to business ownership.
An asset is owned property, physical (tangible) or intellectual (intangible), that has value and is useful and beneficial to the business. Assets are vastly different than liabilities in that liabilities are owed, must be paid out or detract from the business.
Common examples of assets are:
- owned/leased property, business car, computers, internet (tangible)
- brand, trademarks, patents, copyrights (intangible assets)
As long as these items are beneficial and adding value to the business, they are considered business assets because they are adding to the success of the overall business.
As a business owner, one always wants to have more assets than liabilities. If the business has more liabilities than assets, it will fail. There is no way the business will survive for too long without going under because it will be putting out more than it is taking in, or benefiting from.
Because of this, Black business owners must not only own assets but also be an asset in order to increase the chances of lasting success for their business or businesses. Here are some ways to do that.
Be Innovative Always
The most successful businesses and business owners are always ready to launch a new, functional idea. They are fully in tune with creating avenues that are useful for communities and individuals as a whole, and this leads to the success of their business(es), both vertically and horizontally.
Get Rid of Unnecessary Liabilities
Yes, businesses will have liabilities, however, business owners want to cut those that are clearly not necessary. There are plenty ways to cut costs, or reduce liabilities, and one example would be to pay down debt on time and each month on that business credit card. This means you will pay no interest, save money and keep credit solid. Doing it this way makes that business credit card an asset and not a liability.
Buy & Keep Only What Boosts
If it doesn’t draw clients, earn money, or boost your brand, don’t buy or do it. Wasting precious time on efforts that tank continuously and don’t work need to be dropped off in the next landfill.
Make Great, Informed Decisions
A great decision maker makes a great business owner, thus, an asset to a business. Business owners who make informed decisions for both the short and long term are great assets to the business because those decisions are crucial to success.
Effective Communication Skills
One item that skips many lists for assets is great communication skills. Whether it comes naturally or must be learned via classes, effective communication is always an asset because businesses need bosses and employees who can communicate accurately and effectively while gaining positive responses from clients.
While these are only some ways business owners can increase the success of their business, there are many more. Therefore, take a look at your business, make additions and eliminations based on your understanding of why assets are your business’s best friends.