The Importance of Managing Your Company’s Intangible Assets
Embracing Intangible Assets in a Physical Asset Industry
Tangible assets are extremely important and are the main driving force for much of our business as well as our client’s companies. From tractors and combines to excavators and drill presses, heavy machinery and equipment are typically pegged as our client’s largest assets. However, it’s important to recognize that a company must consider a lot more than just its physical equipment when managing its assets. We’ve touched on tangible assets before, but we now hope to show you how to look at your tangible and intangible assets as a whole in order to advance your company.
The overall market has been shifting to place a greater emphasis on the overall value that an organization can bring. A lot of this value is derived from a company’s intangible assets. Intangible assets include anything that is of value to a company and its clients that cannot easily be sold or have a monetary value assigned to it. Some examples would include a company’s goodwill and reputation, patents, copyrights, trademarks and brands. Behind goodwill and reputation are a company’s customer service, sustainability, social policies and charitable causes. These qualities provide a lot of additional value to potential clients, and can impact their choice when deciding which company they hire for their job or project.
In several of the industries we serve (agriculture, construction, tool & die etc.) it can be easy to get caught up looking at tangible assets. This isn’t a bad thing, in fact it’s extremely important for your organization. However, you need to take a step back and evaluate all of your assets together – including your intangible assets. In the same way that you perform maintenance on your equipment, you will want to evaluate your intangible assets and see what you can be doing to improve them or better understand their value if you are auctioning off your entire business. This might look like volunteering an unused field on your farm for a community event, hosting a field trip for a local school to teach kids about your industry, or simply acting as a sponsor for a charity that reflects the values of your company. Investing in the continuing education or certification of your employees shows both your employees and clients that you care about your people and that you want to make sure that they are up to date on best practices to serve your clients to the best of your abilities. Not only will these activities increase the goodwill of your company, some will also act as great marketing opportunities!
As industries continue to shift and client expectations change, you will have to step back and look at how your intangible assets help your company operate and provide value to your clients. You will want to make sure that you increase your efforts in managing your intangible assets in order to meet your customers’ needs and continue to stay relevant in your specific industry.
If during your revamp you find yourself needing help managing your physical assets – contact us! We have years of experience and would love to assist you in any of your asset needs.