There may be assets that your company possesses that are not performing any significant function. You can take advantage of the situation to dispose them or use them as financial leverage to pay off your debts, using different means depending on whether they are assets or liabilities.

These assets can be managed if only you can look around and think deeply.

Are you having challenges with your business? Is the fear of insolvency weighing you down with no obvious solution in view? You may have been pushed into a tight corner with no means of escape from the situation. Probably you are overwhelmed with bills that keep piling up and the money you are making is not even enough to run your business further.

The early signs you observe could be the inability to replace stock sold, inability to pay creditors as and when due or cash flow problems.

It may be that the salaries of your employees are accumulating and there is no means of paying them. You are spending more than you are earning and you may probably have exhausted all available credit facilities that you do not want to go deeper in debt.

You may also not have the manpower to operate the equipment in your possession or they may be outdated.

Experts say you may be oblivious of these assets, but once you are able to identify them, you would realise how profitable they can be to your business.

According to them, these asset may constitute an unnecessary liability which you do not need right now. Therefore, you may have to dispose some of them while others can serve as steady source of income for you.

Professionals in business management have highlighted ways of making good use of the redundant asset to your advantage. These include:

Identify and develop a plan for the assets

An American business executive, Jay Abraham says after identifying these assets, business managers should make a list of them and then try to determine who may be interested in purchasing the assets through a joint venture or licensing deal.

Abraham advises business managers to take the list to a mentor or business associate and let them go through the same process with the list.

He says, “Often they will see something that you have completely overlooked because their needs and desires are completely different from yours; together develop a plan for each of your assets and liabilities. Afterwards, try to determine who might be interested in purchasing your assets through a joint venture or licensing deal. Next, figure out who you need to work with to reduce your liabilities.”

Lease out your asset

Abraham says when you notice that your business is approaching bankruptcy and your office premises has enough space for other interested organisations to utilise, then you can come up with a business proposition in which some part of your company offices can be leased out to others including unused equipment if possible.

He says the agreement can be short-term or long-term as it suits you.

This action, according to him, will help to alleviate cash flow problems and provide funds to pay off your debt and also continue with your business operations.

He says when negotiating with prospective clients who are interested in the lease or sale of asset, don’t start the deal until a contract of agreement is fully discussed and signed.

“Don’t start, don’t reveal too much, don’t make your assets available and don’t make your operation open to the other party until you have an irrevocable, binding and fully stated agreement,” he says.

Recycle your asset

Experts say some assets which may be outdated with no market value can be disposed by recycling them. Obsolete electronics and information technology equipment can be recycled using environmental friendly techniques.

Although, they say the business owner may not get the expected market value from the sale of the equipment to recyclers, they will be able to free up space occupied by such resources.

Outsource the asset recovery

In tight times, professionals say you may be able to save money by assigning segments of your business to someone else through financial agreements. Many organisations will not require enough asset recovery work to justify developing the necessary specialised knowledge and skills. A way out for them, according to experts, may be asset recovery outsourcing.

Assigning the work to an outside contractor with proven expertise can provide access to skills like logistics, data wiping, equipment refurbishment and resale, they say.

According to them, the contractor may assume full responsibility for some or all parts of the process. When equipment is leased, asset recovery services typically become the responsibility of the consultant.

This strategic approach can reduce risk and free the enterprise to focus on other issues like getting the business up and running. For more Tips click here www.kellyjoesteve..com