Most small business owners make the mistake of thinking that their assets would just mean keeping an inventory! Instead, you should have a broad-spectrum viewpoint on complete asset management, which includes everything from your physical equipment to your proprietary software. Also, your brand reputation, trademarks, and human resources should be included in the assets list to start with. With an experienced small business consultant like bizop.org, you can definitely be in a better place with your asset management schedule.

Physical Asset Protection

To start with, you should evaluate your physical assets down to the last detail. This includes, and is not limited to, your IT gear, furniture, and vehicles.

• Maintain a Centralized Register: Take the time to maintain a centralized register of your asset inventory. The master list should include key details, such as the cost of the asset, location, and the date of putting it into circulation.
• Invest in Asset Lifecycle Tracking: You need to employ adequate resources for asset lifecycle tracking, from its acquisition to disposal, so that you can get a clear idea of the profit your assets have generated. Using an asset tracking software should be a credible idea in this regard.
• Focus on Preventive Maintenance: It is critical that you insist on preventive maintenance instead of reactive maintenance. This can help you save costly downtimes effectively.

Legal Asset Protection

Just as important as physical protection, you will need to invest in ensuring an efficient legal coverage of your assets.

• Register Your Entity: You need to register your small business as the right entity, whether you want to form an LLC or an S-Corporation. This in turn creates a ‘legal veil’ between your business debts and your personal assets.
• Maintain Watertight Separation: Do not make the mistake of mixing your personal and business funds. Open a dedicated business bank account to proceed accordingly.
• Get It Insured: You will have to compare and pick the best insurance coverage for your assets. You would ideally need to get various insurance policies, including general liability, professional liability, and property insurance.

Intangible Asset Protection

Often, your most important asset is something that you cannot touch! Your brand value is going to be a critical factor to ensure the success of your business, and you need to protect your brand through trademarks and copyrights. If you have a unique tech product, make sure that you contact the US Patent and Trademark Office and get a patent for your product.

Your Business Can Be Your Biggest Asset

You should recognize that your business can be your biggest sellable asset. There are quite a few instances where a tech startup eventually sold the business for million-dollar deals! While you put your heart and soul in the new business, you might want to sell it to the highest bidder if that’s more convenient.

One of the best ways to plan ahead in this direction is to create efficient Standard Operating Procedures. Setting up SOPs would effectively ensure that your business can run without your direct involvement, so that you can maintain a certain professional detachment.