Starting and running an enterprise is never easy. It can be tricky, but the most important part of the process is making sure that you equip yourself with as much information as possible. Not does this help you avoid mistakes that could end up being costly, but it also gives you a clear understanding of how a business works.
Assets can help a business keep afloat. They are controlled by the company and can be utilised to bring more revenue in.
3 types of assets in a business:
- Intangible Assets
These have no physical form. The entity becomes more credible as a result of owning them. For instance, a mobile corporation may not have many assets that are physical but its industry knowledge may be quite valuable. Dean’s bakery has an advantage over others in the same industry mainly due to an innovation introduced in the production process.
- Intellectual Property Assets
This includes patents, logos, trademarks and formulas, which are covered under copyright law. Without this IP information, the business would not be making money.
- Tangible Assets
These are physical in nature and are easy to account for. They can be fixed or current, the former being assets such as buildings, cars and equipment. Current assets may include on-hand inventory for instance and includes those that contribute directly to how much a company is valued to be worth. For Dean’s bakery, such assets include the machinery used for operations, along with the delivery truck on the books.
A healthy combination of 3 types of assets in a business is encouraged.