It’s a hard world out there for businesses. From the small bakery on your local high street corner to the multinational law firm operating at the highest level. Everyone’s trying to cut down on outgoing costs without compromising their core operations.
But in the austerity mindset it can be too easy to consider cutting costs to be the only way to sustain business as usual. Many do not consider the many assets that they have sitting statically for most of the year. Small to medium sized businesses are particularly well disposed to this. They can mobilise their management structures to work in finding news ways to make money and stave off layoffs or reductions in size.
Cost-cutting is the natural choice in the contemporary environment. However, an expansion in operations can often be the perfect tonic to financial difficulties on the horizon. With a diversified operation working at an increased efficiency, your business is more likely to succeed in the long term through sustainable action. It can seem counter-intuitive, but this action is often itself an alternative to liquidation. Instead of selling off those assets which are not being put to work, they can be made to earn their place in the structure of a business. This requires aggressive action and forward thinking. But it will ultimately demonstrate itself to be the most mature and effective action which can be taken in the long run. If you’re working to build a business which will grow regardless of the conditions, this is the tactic for you.
Although these basic principles are indisputable, there can be a lot more difficulty in converting them into an appropriate tactic for your own business. Fortunately for you, we’ve taken the time to imagine some of the most commonly useful ways that you can make your static assets work for you. Here you are:
If a lot of your human and material resources sit unused for large portions of time, consider hiring them out. They can work either as a supplementary workforce for another company or as a contracting business in their own capacity.
In either case this may require some significant restructuring of your entire business, however in many cases you may not need to acquire that many new resources. You should be able to redeploy the currently underused aspects of your business in order to access new revenue streams. At the same time, you should be maintaining ordinary operations with the rest of your business.
If you are a construction company, you should be able to resume your own contracts whilst accepting sub-contracts from other projects. Construction can be an inefficient business in terms of its use of resources. So proper management can make the difference between a company struggling on one income and one thriving on many. You may eventually need to branch out and invest in new equipment. However, so much of it is readily available online at sites such as http://plant.autotrader.co.uk/. As a result, acquiring further assets should not interrupt your operations.
This is an obvious one-time way to make money from your spare assets. Think about whether you’re likely to use certain parts of your businesses portfolio in the following year. As mentioned above, you should think about using them in a new venture first, however this simply isn’t always possible. You can’t always build a new business venture around some unused property or specialist equipment. More often than not the most tempting way to squeeze cash out of these parts of your operation is to simply sell them off. And it isn’t always the wrong thing to do.
The main thing to be aware of here is propriety. Will you be needing those assets in the year to come? What about the year after? Is there a conceivable scenario in which they would save you money or increase in worth? What is that scenario and how likely is it? Weigh this up against the worth that they would have to you now where you to sell them off. Think it through logically and carefully, but don’t be afraid to act decisively and boldly.
This can be one of the most progressive ways of initiating vital change within the spirit of your workforce. That said, it’s only really an option for businesses with an established and steady income. They can afford to think reasonably far in the future rather than addressing current concerns.
If this is the case in your business, you should be consulting with your workforce to establish the ways that they believe that your residual assets could be used. There are two likely incomes. Either they will feel that they can be deployed to effect in the current business operations, or they will have some ideas for how they could be used to generate new activity. The people on the ground of you operation are invaluable in this regard. They understand how your business can be working better. But they are often lacking the ability or opportunity to communicate such information up the management chain. Businesses like Google successfully employed this strategy to come up with some of their most successful products.
The most important part of this project is understanding your business and understanding the nature of your static assets. If you know where your business is currently falling short of its potential, then you have identified the target. If you have identified parts of your business that are not regularly performing, then you have identified the tools available either in part or completely. What is left for you then is to connect the dots and make everything run as smoothly as possible. As you develop in these strategies, your company will become a more progressive and mature business with an emphasis on sustainable growth and development. And in an environment where competition is rife, and expansion of revenue is key to success, there can be no greater motivation to innovate.