As a business owner, managing your business assets is extremely important – not to mention beneficial. Proper asset management lets you maximise the value of your assets for the long term, reducing cost-inefficiencies and improving your business operations. There are so many ways you can manage your assets but in this article we’d like to share what the benefits are.
Let’s get started.
The Economic Benefits of Proper Asset Management
There are many economic benefits that come as a result of proper asset management. Here’s a summary:
Cost Savings
Running a business, no matter how small or big, is expensive. By prioritising effective asset management you ensure your business assets are properly managed and looked after.
This means you keep track of assets’ whereabouts, renewal status, maintenance, and more. In doing so, you save on the cost of making expensive emergency repairs and replacing lost assets.
Risk Management
Proper asset management supports risk management strategies across your business operations. It allows you to identify potential risks and take proactive steps to mitigate them before they become a problem.
Proper asset management allows you to avoid the risks associated with asset failure or technical issues. A great example of this is IT asset management which helps you keep on top of potential security risks, protecting your staff and customers from costly data breaches.
Improved Business Operations
One of the greatest benefits of proper asset management to your business is improved and streamlined operations. The more efficiently your business runs, the more money you are set-up to make. And taking proper care of your assets helps you do this.
By managing your assets responsibly you can understand which assets are due for maintenance or in need of repair or replacement. This means you can plan ahead and avoid interruptions to your service schedule, resulting in less business downtime, fewer expenses, and improved overall efficiency.
Fewer Customer Complaints
Customer satisfaction forms the foundation of business success. When your customers are happy, business is good. So, it’s important to prioritise proper asset management for a more streamlined business that works effectively to serve your customers well.
When you manage your assets properly, you streamline your business operations, make more cost savings, and properly manage your risks. All of these things play a part in reducing customer complaints.
The Environmental Benefits of Proper Asset Management
Taking care to properly manage your company assets also has a positive impact on the wider environment. Here’s how:
Equipment Management
By managing your assets properly, you throw away less equipment over time. This is because you prioritise maintenance and repair over replacing things as soon as they break. This culture of reusing and recycling means less equipment ends up in landfill and your environmental impact is reduced overall.
Sustainable Sourcing
When you’re up-to-date with your assets and you know what needs replacing when, you have the time to source equipment sustainably. This means you can shop around for environmentally friendly products that use recycled materials and sustainable manufacturing techniques. This thoughtful sourcing reduces harmful business waste and ensures your efforts are more sustainable.
Mindful Disposal
By incorporating mindful asset disposal practices into your workplace procedures you can ensure that any old/unusable equipment is disposed of in a way that is mindful of the environment. This might mean creating a take-back scheme, upcycling to support a circular economy, or donating items to charity.
What’s Stopping You?
Some of the most common roadblocks to proper asset management we’ve discovered are:
- Finding it difficult to monitor IT assets near the end of their lives
- Inadequate asset tracking and monitoring tools in place
- Data security issues caused by inadequate IT equipment disposal
- A resistance to change
To find out more about effective asset management and how to incorporate it into your business infrastructure, check out our blog.
Final Words
Approaching business asset management thoughtfully will ensure you take proper care of the assets in your possession. This in turn protects the environment and supports a circular economy.
Whatever industry you’re a part of, we can all do our part to reduce our impact on the environment and create a more sustainable economy.