Asset Assessment
Assets are fundamental to the success of any business. Simply put, assets are anything a business owns that has value. Assets can range from the physical to the conceptual, potentially encompassing physical product inventory, to intellectual property, to the cash in the bank or the furniture in the office. Think of it this way – if you were to sell your business tomorrow, what would you factor into the final sale price? Anything of value to your company is an asset. Therefore, it’s wise to periodically tally up all the assets a business owns and evaluate their value with an asset assessment.
What is an asset assessment?
An asset assessment is a process of physically recording all of a business’s physical and non-physical assets, analyzing their condition, and assessing their current value. Only by understanding what you have in your arsenal can you strategically decide how to deploy those assets.
What do you include in an asset assessment?
When conducting an asset assessment, there are a few important things you’ll want to record:
- Asset
- Asset type (equipment, technology, product inventory, equipment, etc.)
- Description
- Location of asset (physical or non-physical)
- Department responsible
Download The Pragmatic Framework
Asset assessments are a big undertaking, but companies of any size can benefit from conducting them periodically. Asset Assessments are just one of the fundamental concepts of the Pragmatic Framework, which is Pragmatic Institute’s comprehensive guide of essential concepts behind product management and product marketing. To explore these concepts in more detail, download your copy of the Pragmatic Framework.
