Successful businesses develop strategies that increase productivity, cut costs and boost net income. In recent years, enterprises have been forced to initiate sound strategies in order to survive. The quantum increase in productivity realized in the 1990s and 2000s has leveled off. The outsized profits of the technology and real estate booms are historical footnotes. Downsizing and budget reductions have proven to be double edged management strategies. In order to flourish in the 2010s, business leaders need to apply all of the tools at their disposal.
An often overlooked area of sound business management is asset conversion. Simply put, asset conversion is the repurposing of current assets to enhance productivity. In many cases, that means converting those assets to cash. As professional auctioneers, that process falls squarely within our area of expertise.
Tangible assets become expendable due to modernization, obsolescence, expansion, downsizing, redirection, merger / acquisition, duplication: all of these common circumstances result in the need to dispose of surplus assets. In the haste to grow and stay relevant, businesses often neglect the back side of the process; what to do with the assets left behind when the business moves on.
One approach is to let depleted assets lie. They are bought and paid for. They have been depreciated. Ideally, they promoted the bottom line in the course of service. Why waste time dealing with the past?
Consider the following reasons.
Unneeded assets occupy space. A memorable quote from a past client upon being presented a post auction settlement check was: “That was the cheapest building I never had to build”.
Unused assets clutter a workplace. Clutter results in decreased productivity and increased workplace liabilities.
Unused assets can pose environmental hazards. What happens when decommissioned equipment leaks oil, transmission fluid, gas, industrial lubricants etc.? Environmental citations and clean-ups impact a company’s balance sheet and present public relations issues.
Unused assets converted to cash become a revenue stream to aid in offsetting the cost of acquiring and maintaining the infrastructure necessary to sustain an enterprise
Surplus assets may have a general or a very specific application. Whichever is the case, it is likely that some other entity perceives a current value in the items that your business no longer needs.
Surplus inventory auctions provide an efficient option for realizing the benefits of asset conversion. Professional auctioneers possess product knowledge. We are adept at marketing. We specialize in creating a marketplace that employs competitive bidding to realize fair market value.
One contact, one marketing event, one check; professional auctioneers can free up storage, create a more efficient work space, minimize workplace and environmental hazards and enhance your balance sheet. So get off your assets. Contact a qualified auctioneer to put unemployed and underemployed assets back to work