Where are the best assets in your company? When we start an enterprise, most of us fall into the trap of thinking our products are our primary assets. We put everything we have into that one, trusty thing, and hope above all that it sells.
This is, after all, your only chance of breaking even, isn’t it? That big business idea and the things you create because of it are what this whole entrepreneur thing revolves around. Right?
Only, something’s not right, and your product isn’t selling the way it should. You want to get a loan, but your profits don’t qualify you. Before long, the business you put so much work and money into are plummeting into the red zone of no return.
Why is this happening to you? Perhaps because you’ve been blindsided by the earning potential your product currently offers. And, you wouldn’t be alone. Most entrepreneur guides out there hark on about the importance of the product. And, they’re right, of course. Without a top product, you aren’t going anywhere. But, putting all your money and asset potential into that one thing is always a mistake. Whichever way you look at it, your product will NOT be your top asset for a good while. In fact, many companies don’t see real results from their products until well down the line.
Which begs the question of whether you should plummet all your funds into that one thing. In truth, you have to split those assets if you want any chance of success. Think of it as not putting all your eggs in one basket. Don’t put all your funding into one asset. Instead, consider these other options. They could all prove more valuable to you in the early days.
A Decent Team
‘But, I have to pay my team members. How are they an asset?’ Ahh, dear naive entrepreneur. Having a decent team behind you is, undeniably, one of the most valuable early assets you could hope for, in many ways. For one, the larger your team, the more your earning potential. More people means more ideas and increased production. A large and reliable team will ensure you can take every job or order which comes your way.
On top of which, staff members increase your thinking capability. Having other people on board ensures you have a fresh well of ideas and approaches. And, those are precisely what you need in a competitive business environment.
Of course, this is a catch 22 situations. Many entrepreneurs aren’t in any position to hire until they reach some level of success. But, it’s worth thinking about ways you could achieve this. Even one employee could serve you well, or you could opt to work for freelancers who can help you develop for less. Either way, new thinking potential is most definitely an asset. If you have to cut your production costs to afford it, it may not be as much of a disaster as you think. Having more people on board certainly means you stand a better chance of earning more money. You’ll then be able to put it back into your product down the line.
Few companies can get off the ground without decent equipment behind them. Hence why startups often set us back a fair amount. If you want to produce retail quality stuff, you’ll need the machinery to do it. Of course, this varies among enterprises. For you, your equipment may be smart computers or expensive sewing machines. Or, perhaps you took out a loan in your early days to afford some more extensive pieces. As long as you’ve cleared that loan now, this equipment could be the most beneficial asset to you. After all, your product’s unlikely to pull the prices of these babies to start with.
But, you use this equipment, so how can it be a useful asset? Well, as with staff, equipment like this ensures you can produce more than you would otherwise. And, that’s an asset in itself. But, options like these also have the benefit of providing you with equity. And, that’s always a useful thing to hold onto, especially if you’re struggling to make ends meet. Companies like equifyllc.com help companies like yours thrive by providing loans based on equity, rather than earnings. So, if you can’t get a loan based on profits, you may well want to turn to your trusty equipment instead. Even if you’re hesitant to put your most expensive pieces at risk, this may be a step worth taking. The risk is only as substantial as you make it. If you have a decent plan in place for repaying that loan, you shouldn’t have any worries in that sense.
Again, the majority of entrepreneurs consider marketing to be an expense, rather than an asset. Again, they would be wrong. Marketing is a tremendous asset and one which is especially crucial in your starting stages. After all, this is how you’re going to attract the customers who will lead to sales later down the line. So, again, you should find the money to make this work for you.
Social media marketing options make it easier than ever to market yourself for little or no cost. So, you should make the most of that. But, as it stands, this still won’t be enough to boost you into entrepreneur stardom. Instead, it would be worth turning to companies like http://rockcandymedia.com who can really make marketing take off for you. Such companies know exactly what they’re doing, and can ensure higher levels of success than you’d reach alone. What’s more, they take this pressure off your shoulders, leaving you to focus on aspects you’re more qualified in.
So, again, it’s worth cutting back on production to make money for this. Just for now. After all, a decent marketing campaign will be much more valuable than a load of products you can’t sell. And, if your campaign goes down well, you can be sure that you can boost production again in no time at all.