What is ASSET STOCK In a business? How to measure Asset Stocks?

There are 4 important resources in business, we call it 4M’s

1. Manpower

2. Machinery

3. Materials

4. Money

But, in business, it is important to cut costs in 3M’s Such as Manpower, Machines & Materials, so that the 4th M Money is saved. In other words, if you have 4th M you can acquire all the 3Ms easily.

What is 5 Th M?

5Th M is called “Asset STOCK”.

Asset STOCK – is an ability at which a business is capable of servicing its customers and develops over a period. It covers all the areas of the business. In simple terms, Asset STOCK is like you are analyzing and ranking capabilities of the person e.g. Graphics Designers – What is his score in handling various software’s, how does he talk, attitude, the way he handles his customers internally. All this is counted for the successful Graphics Designers. A business is also the same.

A business develops capability (Asset STOCK) in several areas over a period, some of it will have high scores and some of the capabilities will have low scores. Most companies do not have processes and systems to measure 5 th Resource ASSET STOCK.

Hence, its utmost importance to measure the score and grow this Asset STOCK to progress in the business.

To make things simple, we have categorized Business as 10 areas

1. Finance

2. Operations

3. HR

4. Sales

5. Marketing

6. Customer Management

7. Strategy

8. Legal

9. Risks

10. IT

Start giving scores 0-10 in each of these areas and start working on improving the capabilities missing to serve your customers better and generate cash.

You can go further and subdivisions in each of these categories and start measuring the scores to grow your asset stock.

As you start measuring and working on with the ASSET STOCK you will start seeing the results and your business will grow.

SME Leap is designed to provide tools and information which entrepreneurs and business owners need in one place to cross the growth barriers they had in taking their business to the next level. Please visit https://smeleap.com/to know more about us.

Please find below some of the Software Tools Useful for Businesses

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