Last time we looked at increasing the business productivity by maximizing existing productive assets.
Once we have our productive assets working near their maximum we can look at other ways to grow our business. A simple way is to acquire the use of further productive assets.
This can be done in a number of ways. We may:
- save up to purchase a new asset
- partner up with someone that has an underutilized asset
- rent an asset
- borrow an asset
- obtain a loan for an asset
As always we should keep controlling costs in mind in order to be successful.
In selecting ways to gain access to more productive assets we must be wise in our choices and make sure not to overextend ourselves.
Adding assets will generally add to our fixed costs and should therefore be considered very carefully and conservatively. We must be one hundred percent certain that the new asset will be able to cover all additional costs adequately with a reasonable profit margin before blindly acquiring new seemingly productive assets.