It’s extremely difficult to let go of anything in your business in which you have invested time, energy and money. That is why you have to think logically, and make decisions about your assets based on the company’s overall well-being.
Start with asking yourself to answer true or false on this statement. My business has an asset it would be better off selling even at a loss to free up cash and pursue a more promising opportunity.
Once you expand this question to suggest periodically reviewing assets, procedures and even your people, it is almost impossible not to see this issue as a point to regularly revisit.
Consider logically reviewing your organizations assets and related liabilities regularly. Many companies have one or more assets that can be associated to a band-aid solution, or assets that should be sold (even at a loss) and re-invested in another opportunity. This can be particularly true when the executive bonuses are mainly a function of the absolute dollar level of profitability, with limited influence from return on equity or similar measurements.
On a positive note, businesses that sell stagnating assets, and invest in new creative lucrative assets can build opportunities like a never-ending plush rainforest. Why not implement thorough asset performance measures, and embrace the change that may lead to your company moving forward.
If you realized a substantial one-time opportunity this quarter, what existing financial balance, staff member, or problem would you change or solve?
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Known as the Fiscal Doctor, Gary W. Patterson has helped 2 INC 500 companies and over 200 companies in manufacturing, technology, service, construction and distribution in companies from start-ups to Inc. 500 to Fortune 500. Gary Patterson helps you grow top line revenues, keep more of the bottom line and make life more fun. Author of Find Your Blind Spot – Before It Finds You, and Million Dollar Blind Spots. Contact Gary when you need a speaker or consultant on strategic profitable growth while removing risk at www.FiscalDoctor.com or 678-319-4739.
© Gary Patterson, the FiscalDoctor® www.FiscalDoctor.com
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