What Assets Does Your Business Have?

Introduction

In the midst of the 2007–08 world crisis, Daniel Priestley watched as his brokerage business began to falter. A business advisor pinpointed the issue: the absence of assets owned by the business. This revelation prompted Daniel to seek out something of value he already possessed. He found an email template he frequently used to engage new clients. This modest email template evolved into his first book, "Key Person of Influence." This book subsequently led to a specialized training program and ultimately to the establishment of a global training business offering a variety of services.

Originally, Daniel's business was valued at £300,000, primarily due to the lack of unique assets. However, once he shifted focus towards creating assets like the book and training program, the value of his business skyrocketed to £10 million in just seven years. This transformation underscores the significant impact that creating unique assets can have on the valuation of a business. Now, you might be wondering what a business asset is, or perhaps you have your own interpretation. Let's briefly clarify what a business asset is to ensure we have a common understanding.

What Is a Business Asset?

Let's explore Daniel Priestley's definition of a business asset. According to him,

"A simple definition of a business asset is anything that is unique to your business and would continue to add value even if any particular person left."

Essentially, it encompasses everything that benefits your business, even in your absence. For instance, once you've developed an effective sales script for your sales team, this script becomes an asset. It functions independently of your presence, allowing others to follow it and maintain productivity.

The Seven Categories of Business Assets

In his book, 24 Assets he outlines seven categories of assets:

• Intellectual Property
• Brand Assets
• Market Assets
• Product Assets
• System Assets
• Culture Assets
• Funding Assets

Reflecting on Your Business Assets

Consider your own business. What unique assets do you possess? Could you develop new assets to enhance your business’s value?

In upcoming posts, we'll delve deeper into each asset category. Stay tuned for this journey of business assets, I promise you it's worth.