A is for...

Asset.

After your staffing costs, your built assets, your business’ occupied accommodation, is most likely to represent your biggest cost centre.  Achieving the most efficient and effective usage of your accommodation portfolio is a constant challenge for business and one that, if not managed well, can cause major difficulties and, of course, unnecessary expense.

The opposite of asset is liability.  Many businesses will focus on their real estate in terms of their ability to run their operations; however, not focussing on the whole aspect of their asset responsibilities can lead to difficulties.

Here are my top 5 tips:

1)      Utilisation: Nothing worse than having too much accommodation, unless it’s having too little!  Undertake some assessment and analysis of your occupancy and how well it relates to your core business requirements.

2)      Lease: Have you ever reviewed your lease?  The last time many occupiers will have viewed their lease is when their lawyer was showing them where to sign.  It may be dry, but get a glass, mug or cup of your favourite beverage and have a look through.  You do know where your lease is, don’t you…..?

3)      Liabilities: Following on from Lease, do you know what your liabilities under the lease are?  A lot of companies get caught out with this one.  Insuring and repairing liabilities are onerous and taken very seriousy by the asset owner, your landlord.

4)      Location: Does your business require to be in its current very expensive accommodation?  Could a review of the business objectives, processes and customers reveal that a carefully planned and considered move to less expensive, more flexible accommodation could save your business money?

5)      Contracts: There are, undoubtedly, a large number of contracts keeping your buildings and your business running.  When was the last time these were reviewed, not just for cost but more specifically for suitability and relevance.  You may surprise yourself!

James Alexander Consultants are expert in assessing your portfolio and, with you, determining a strategy to develop the correct balance of assets, their relevance and performance for you.  We develop, plan and implement the strategy, leaving you to focus on core activity and opportunity.

eMail us on innovation@jaltd.co.uk or see our contact page for our numbers.  We look forward to speaking with you.