The assets of a business or company are the key drivers of driving value creation and the investment decisions need to be fully evaluated. Investment for a small business requires careful assessment as depending on the scale it can affect its workers, projects, and the company itself if it fails.
Hewson Jackman, CEO and financial analyst at Max Cash, shed some light on small businesses utilising assets on their 2nd, 3rd lives. Jackman says “the current economic situation compelled many small business owners to prefer using second-hand or used machinery. Businesses are not anxious to be frugal in other areas as long as efficiency and results are not compromised. It is known as “green activity” which is something that any company should practice”.
So how could you make the most out of your assets in their 2nd, 3rd, or 4th lives? Here are the top five tips to keep in mind:
Pre-owned Does Not Necessarily Mean Over-used
Assets in their 2nd or 3rd lives merely imply that it has formerly been owned – it does not define the condition or quality of the product. There is a wide array of reconditioned, recycled, and never used machinery for sale. Select the preferred condition that would best work for you and your business.
Prioritise Ventilation
Good ventilation is essential for any equipment. If your workspace lacks ventilation, it may lead to machinery overheating. Frequent overheating limits the product´s efficiency and service life. Advocates at LUP Global recommend controlling work area temperatures.
Clean Regularly
Maintaining your used equipment clean and free from clutter is another crucial factor in extending its lifespan. Air attracts dust like a magnet and some parts that preserve the coolness of the machine draw in dust, pollen, shavings, and dirt particles, which accumulate over time. Whenever possible, dust and wipe the equipment at least once a week.
Don´t Cover Electrical Parts
Cords and cable wires should not be placed under rugs or floor coverings because they can be scratched or be damaged. When left unchecked and overlooked, damages may diminish an asset´s efficiency and hence curtail its lifespan. Use appropriate safety covers when required. Thus as much as possible, tidy things up and take some time to install appropriate chord and wiring management.
Schedule Regular Maintenance Service
Consider how often you use your equipment. For instance, equipment that operates daily for a more extended period could malfunction without warning. It´s necessary to set regular maintenance to detect problems before they can interrupt workflow. Understand what warranty provisions are available from your scheduled maintenance programs.
Business Insurance – Machinery Breakdown coverage for pooled Assets
Although we do not provide any insurance protection, LUP Global has negotiated access for our clients in a unique insurance offering, which is provided by our ancillary service Insurance partners. This protection includes machinery breakdown coverage on a pool of assets, as well as your pre-existing assets and there may be an opportunity to upgrade through your existing insurance providers. If however you would like to have this reviewed through LUP’s ancillary service Insurance partners, please let us know. This fully comprehensive cover can include protection across almost all breakdown issues, partly including wear and tear, as well as any resultant loss of trade/income, whilst less comprehensive cover mainly protects against motor burnout / fusion, minimising any associated risks with procuring an under-utilised asset.
Finishing Off With The Ultimate Tip
Utilising assets in their 2nd, 3rd, or 4th lives will help your business save money. But, there´s more to it than just cutting cost. The more significant benefit it adds is creating a more sustainable and greener world for generations to come.
If you have unused -yet functioning machinery or you require pre-owned under-utilised equipment, connect with LUP Global. LUP Global is the leader in Circular Asset Management and Sustainable CAPEX Procurement. Check out our available assets here:
https://www.lupglobal.com/asset-available-sale/ and learn more about our
asset management best practices.
Go the extra mile to ensure that every piece of equipment you have will be good for both your Company’s PROFIT and Our PLANET.
Article: Written by Christopher Clark
Edited by Michael Brown