What Types Of Assets Might A Small Business Have

What types of assets might a small business have? So let's talk about just asset management in general, and then let's break it down between those that are liquid, those that are fixed, and then those that are more intangible. So take a list and get ready because asset management is critical, just like cash flow management is critical in any business, and a lot of you haven't even clicked on either of them. You know, most people that actually click on a link or come to Ask Laurel and ask a question, typically are more emotional entrepreneurs, meaning they don't have a team, they don't have a system, they're not structured right, they're overpaying taxes, they probably don't even have their taxes on a plan. So asset management and cash flow management are two things that have to come into the business to create sustainability from the beginning. So first let's talk, and I'm going to actually read off a few of these, the types of business assets. So high liquidity assets are either cash and bank balances, accounts receivable, inventory, short-term investments like stocks, bonds, CDs, mutual, like money markets, not even mutual funds because that's not even anything we would even do. Long-term assets are harder to liquidate. So these are things like the real estate, the property, the equipment, the machinery, furniture, the fixtures, all those kinds of things. So when you first are buying these assets, again, if you don't have a great tax strategist, they're not even coding them right, they're not coding the depreciation schedule, they're not even putting it onto the books right, because a lot of times people look at these kind of expenses and they'll just put it on the expense side and it'll be just treated like income and expenses. So if it's just sitting on the P&L, you're never going to have the capital depreciation and the benefit of the real estate, the equipment. For example, our marijuana farm, we have water rights, mineral rights, we have all sorts of rights out there. Those are taxed at a very different rate. One of the things that we're actually including in our intangible assets actually as we go into this would be then our carbon footprint. So that's going to be interesting where that's going to be coded, whether it be between a fixed asset or an intangible. So before I talk about intangible assets, and again, this is just you starting to put a list together of what you all have. Now, if you're just in your home office and you don't have a lot, then you probably have just the liquid assets that you might have. Some other liquid assets that I know businesses have accumulated, I know I have as well, is when you travel to other parts of the world, you may be paid in their currency. You may be paid in diamonds. I've been paid in gold. I've been paid in silver. I've been paid in all sorts of different currencies. A lot of times you'd be paid in cryptocurrencies at this point. So before I go into what intangibles are and how they should be held, I want you to subscribe to our channel. I want you to hear five days a week, click that notification button. So every morning it clicks up and it says, listen to Laurel five days a week, get your kids listening. This is the best way this channel is to put financial literacy and a business money conversation into your household. So make sure that you are constantly here, share this with 10 or 20 people. And on a weekend, why don't you binge watch with your kids? So grab a journal, it's in the show notes below. While you're down in the show notes, why don't you grab two tickets to our Millionaire Intensive? So I teach you how to live corporate life. Through that, you're going to start learning how to set up your business right, your QuickBooks right, your P and L's, your balance sheets, where are your asset management lists? Make sure you grab that. And when you binge watch our channel, we give you a $750 credit for binge watching 25 hours towards new tuition. So if you're a family of five and all five of you binge watch for 25 hours each, you each get $750. You accumulate all that up. That's a nice credit towards tuition for your whole family engaging in this conversation. Just made that up. Make sure you use it. Me and my little magic wand. Now you have to know this magic wand only works. It actually doesn't at all. So you need a team. You need a system. I put that together for you in its entirety. This won't work, but good luck if you'd rather play life that way, which is like a lottery ticket. So intangible assets are things like intellectual property. So you could say, well, what's this worth? What's the brand of the millionaire maker worth? What's the brand and the intellectual property of the six New York time bestselling books? What's the game worth? What is just goodwill? Like goodwill can go in all sorts of different directions. What is that worth? And again, you can actually put values to those. So those are a little more like what I call a fixed asset, contracts and agreements, accounts receivable. What do people owe you? Do you have longstanding contracts that regardless of you being in or not? So for example, I have a plumbing company and a cleaning company that are getting ready to sell. And so their contracts that are like two to three years into the future actually count towards the value of the business and its sale. Intellectual property, brand reputation, customer loyalty, and probably the biggest one, you can put it between a fixed asset and intangible is the database, the buying list of your customers and how valuable is that to you, to someone else, to a competitor. So all of these assets have some value to them. A lot of either actuaries or very smart tech strategists can put some true values to this. So you can really see your true net worth because a lot of times you don't take those kinds of intangible assets into consideration on your personal financial statement. So the last thing I want to talk about is how do small businesses use these assets? So you can use them as collateral. You can use them as lines of credit. You can use it for business financing, get up to a hundred, $200,000 to 0% financing and funding for up to 21 months. We've got over 500 sources that will do that. And again, you have to lean in, become a client and be knowledgeable. We don't do any of these kinds of activities just for the casual person who's a looky-loo that clicks around. When you come into our community, you come into the total integration. So we review your entire foundation from your corporate structure, your corporate compliance, your trust, your life insurance, your IRAs, like everything, like what do you have? And we have an entire integrated team ready to help patch it back together because many of you have massive gaps in your plan. It's not really a plan. It's sort of this scattering of interesting assets. So make sure that you work on your asset column, your balance sheet or asset management. If you have any questions, you're going to go to asklaurel.com, ask a question, make a request. We'll be back tomorrow.