Increasing your number and type of productive assets.
Last time we looked at increasing the business productivity by maximizing existing productive assets.
Once we have our productive assets working near their maximum we can look at other ways to grow our business. A simple way is to acquire the use of further productive assets.
This can be done in a number of ways. We may:
- save up to purchase a new asset
- partner up with someone that has an underutilized asset
- rent an asset
- borrow an asset
- obtain a loan for an asset
As always we should keep controlling costs in mind in order to be successful.
In selecting ways to gain access to more productive assets we must be wise in our choices and make sure not to overextend ourselves.
Adding assets will generally add to our fixed costs and should therefore be considered very carefully and conservatively. We must be one hundred percent certain that the new asset will be able to cover all additional costs adequately with a reasonable profit margin before blindly acquiring new seemingly productive assets.
Before yesterday and today's article I was considering buying solid silver cannon with my STEEM but now you have me thinking about buying a quality camera. Can you help me help some victims of socialism acquire a productive asset?
I think all world cruncies should be in gold but unfortunately perhaps all countries cruncies are Paper like that's why there is no well progress thanks for this post @sme
Business successes is hinge on good strategies and prolific study of outcome. Before embarking on any decision, one must consider the relative results in order not to jeopardize the business.
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Great post really, i have added some few things to my small head library. Taking a loan to buy an asset ain't a bad idea at, i have been considering it, but the fear of the uncertainty of tomorrow and of the unknown is really my draw back. I just got to have Bolden up for sure. Thank you for good content and fir sharing.
Generally, assets decrease their values as time passed by and as they are being used in the companies daily operations. But there are also assets that increase in value as time lapses. One example is Land. Land assets do not depreciate but rather appreciate in value.
One reason why land value appreciate is because of the increase in population. As the population increase, more houses/home are needed to be constructed and the more land is demanded. In turn, as the demand on the land increases, the prices on land also increases.
You have summarize everything up in a short article. All said is right. Thanks for sharing.
Thanks for the post.
Currently I feel I have too many assets that aren't producing income. I need to re-balance as I just don't have enough liquidity which is always a bit of a risk.
This is inarguably true. Neglecting cost has closed down many businesses. Also, we should always mind our businesses nevertheless, we need to borrow leaf for further advancement from similar business models around us.
Steem On,
BOS Team
Good job @sme!