A Step-by-Step Guide for Your Asset Management Plan

Revenue may not be the most important part of your business. Sure, income is important, but if your company’s assets are not managed properly, the losses suffered there could erase all of your income.

That’s why having a solid asset management plan is just as important as securing assets in the first place.

But what makes a good asset management plan? Well, fortunately for you, we’re going to cover that in this article.

We’ll go over what an asset management plan is, as well as the important points you should be including in your very own.

What Is An Asset Management Plan?

An asset management plan is a crucial part of any good organizational financial plan. The plan should outline your short-term and long-term objectives for your portfolio.

Think of your asset management plan as your roadmap. It’s there to show you where you’ve been, where you are, and where you’re headed. We can’t go anywhere if we don’t know where we are currently.

That’s as true in asset management as it is in life. Below, we’re going to outline some key steps to get you started with your asset management plan.

1. Take Inventory

It’s hard to manage your assets if you’re unclear on what you’ve got. This applies to an individual investor, as well as an organization. A complete and thorough inventory will serve as the cornerstone of your asset management plan.

What assets you have, their location, what they’re worth, when they were built or bought, and their projected lifespan, all make up the key elements of a solid asset inventory.

2. Think About Lifecycles

For your plan to be accurate, you need to think about the entire cost of your assets. Equipment, facilities, and other company assets may cost a certain amount now, but what will they cost throughout their life?

Thinking in the long-term is the only way to effectively manage the company’s assets. Maintenance, capital expenses, and disposal costs are all expenses that can creep up and increase the lifecycle cost of your company’s assets.

Sometimes, when it comes to this type of planning, it helps to get a third-party perspective. It can be difficult to remove yourself from the situation and see how things are going to play out in the future.

If you would like help with any aspect of your asset management, talk to the pros at Utilityservice.net.

3. Stay Cost-Effective

Managing your assets is always a step in the right direction. But when you start to manage assets properly, you can really begin to set your organization apart.

Many companies are managing their assets reactively. They don’t have any planned asset management. They wait for a transformer or power station to blow, and then they assess the damage to fix it.

Managing this way can leave you behind the eight ball. It may even do serious damage to your company.

Electric utility asset management needs to be proactive. Preventative maintenance is key. Schedule inspections and repairs to be done before they become a problem.

It will keep all of your equipment running in tip-top shape and cost you less money to do so in the long run.

Power To the People

There is your quick and easy rundown of how to construct an effective asset management plan. Taking care of your company’s power stations and big equipment will only pay off down the road. When your equipment is lasting much longer than your competitors’, you’ll be grateful that you did.

What is your company doing for asset management? Leave feedback in the comments below. If you’d like more articles on this, or related topics, let us know that in the comments too.