As a business owner, the protection of your assets should be a priority and it is also a sensible business management strategy to ensure the longevity of your enterprise.
Importantly, by doing so it will give you peace of mind as the entrepreneur of an enterprise that you are determined to operate successfully and grow systematically.
Let me elaborate on why asset management is important for a business, irrespective of the size or the sector in which that enterprise operates.
To “look after your belongings” is to take responsibility for your personal possessions by keeping them safe, well-maintained and in good condition.
From an early age, many of us were taught by parents, older siblings and family elders to care for our toys and protect our personal belongings. Cautioned that if we fail to do so, they may be broken, misplaced through negligence or damaged by others.
Not doing so became an experience that resulted in crying.
When carried into adulthood, this habit delivers clear financial benefits by extending the productive life of an asset or possession.
The same principle applies in business.
Equipment, tools and other assets are often bought with hard-earned profits. Used responsibly, they can provide years of productive service, reduce maintenance costs and limit unnecessary repairs.
Well-maintained assets also retain greater value when they are eventually disposed of. A stronger resale price can help offset the cost of buying a replacement or upgrading to a newer model with improved features.
Asset care should, therefore, be part of every workplace culture.
For this reason, it should be included in every new employee’s induction.
Supervisors should regularly remind staff to care for the tools, equipment and laptop computers assigned to them, as these resources are essential for effective performance.
However, reminders alone are not enough. Clear expectations must be supported by practical measures, including:
- Training new employees to use, handle, pack and safely store assigned tools, equipment and computers.
- Conducting routine inspections of laptop computers and other work equipment.
- Reinforcing accountability for the proper use and safekeeping of company property.
- In the event of non-adherence to workplace rules by improper use of assets, taking immediate corrective action should be the norm.
The enforcement of such practices is standard procedure at the entity I am associated with, and I have seen the benefits first-hand.
And the importance of adopting such a business management stance has yielded numerous benefits over the years for us, including that by making better use of our firm’s assets, we lowered the demand for replacement by extending the asset lifespans and avoiding unnecessary and costly replacement.
When my business partner and I launched our entity, the prophets of doom and naysayers said, some loudly and others in hushed tones, that our business model is flawed and we would soon face closure.
But here we are still assisting emerging, novice and emerging entrepreneurs across Namibia to create wealth and jobs.
The bottom line is that in a competitive business environment like Namibia with its open market economy, prudent management and looking after assets is crucial for operational stability and the environment in which business growth is fostered.
– Danny Meyer is reachable at danny@smecompete.com
