Assets and Their Place in Business

Assets for an essential part in the value of a business. Wise finance managers convert their money to assets especially immovable ones. Assets are classified in two broad categories which are fixed (immovable) and current assets. Fixed assets are such assets as plant equipment, machinery and buildings. This can not easily be converted to cash in a short period of time. Current assets include such things as stock, cash on hand, investments and savings, cash in the bank and all the debtors (owing). These are more likely to be easily turned into cash than the immovable, fixed assets. Whatever type of asset you have, it is important to determine the financial health of the business.

A few pointers

- Assets help you to lock your value - Instead of keeping your money a cash, when you buy land or a building, you are assured that many years later you will still enjoy the property value. Property does appreciate in value over time whereas other items like vehicle depreciate in value from the day they are bought.

- Always keep assets in an appreciating manner - when you purchase an asset, it your prerogative to ensure you add value to the asset so that it keeps appreciating. To obtain is one thing, maintenance is the other. Many people may have the energy and determination to purchase the property but fizzle out easily when maintenance is called for hence value is lost over time.

- Protect your assets from illegal takeover - Whenever you have assets, ensure that you transfer the ownership to your business's name or that of the owner (director). There have been numerous cases of fraud where one property was sold to many people who did not care enough to follow through on ownership change issues. Have the current deeds or agreements stored up with a lawyer or in a fireproof safe somewhere. Failure to produce such documents is tantamount to people taking advantage of you and assuming ownership of the assets.

- Appoint an asset manager who oversees the welfare of all assets - Depending on the size of the assets you have gathered over time, it may call for a person who is focused on managing the affairs of your assets. An asset manager's role is to ensure that the assets are safe, maintained and safe to use. It has to be someone who is well structured in their thinking and operation.

- Shed off assets which are high maintenance - There comes a time in life when the asset you probably got is costing you more in maintenance than the value it brings. This could be so for vehicle for example. Be always watchful over things that seek to take away your money and your peace.

- Assets and inheritance - Usually when people talk of an estate or disposal of someone's trust, they are referring to the dissolution of assets the departed person left behind. Always ensure that as a family man you have an up to date will kept by your lawyer which you update from time to time, whenever a new asset is added to the list. It is sad sometimes to find a woman whose husband had no will being thrown out of the family home by relatives who claim the inheritance. This is prevalent in some parts of Africa and definitely in other areas of the world.

Rabison Shumba is a young African entrepreneur who has interests in Information and Communication Technology, Agriculture and Mining. He is also a motivational speaker, trainer and author. His book, The Greatness Manual and various online articles are tools for personal and professional development. Together with 100 other Career Experts, Rabison co-authored the 101 Great Ways to Enhance your Career. Rabison has a personal vision of impacting the lives of children in marginalized communities by creating platforms for career counsel and guidance, information empowerment and capacity building through the Greatness Factory Trust, where he currently holds the position of Chairman of the Board of Trustees and Acting Executive Director. He is actively involved in the organization of career enhancement and guidance colloquiums to propel and inspire both young and mature professionals to greatness. His areas of expertise include strategy, leadership, personal and professional development. Rabison is married to Jackie, and they have two daughters. They reside in Harare, Zimbabwe. http://www.greatnessmanual.com or http://www.lulu.com/spotlight/rshumba