Soft assets are often overlooked, and almost never make it onto budget sheets and forecasts. In our changing world, however, they are gaining more value as hard cash is harder to come by. Do you have soft assets that you aren’t using to their full potential? Or are in you need of making smaller investments in valuable soft assets as opposed to spinning your wheels trying to get cash quick? Soft assets may not seem like they carry as much weight or bring as much success, but acquiring them always pays off in the long run.
What exactly are soft assets?
Soft assets, as opposed to hard assets, are less or intangible and have little or no market resale value. Hard assets are typically considered to be cash, property and other investments that hold the majority of an entity’s monetary worth. Soft assets, on the other hand, are things like software, IT and communications equipment, and even highly skilled employees. These are relatively small investments when compared to buying property, but collecting soft assets of this sort can lead to smarter and more efficient businesses and should, therefore, hold just as much, if not more, value as their hard counterparts.
Three reasons soft assets are valuable
1. New business models
The world of business is changing quickly, especially with emerging technology trends taking a lot of burden off people and putting it on connected devices and other technologies. If your organization isn’t poised to adapt with and ideally ahead of the information technology curve by investing in the various software and hardware quickly becoming mainstream, you’re missing the point. With new technologies and therefore new ideas of data and information, non-profits are becoming more service-oriented, and you need the right tools to remain relevant, no matter your industry.
Soft assets are often centered more around people and jobs than they are the bottom line. With service-oriented models becoming the norm, it’s important to have happy customer-facing employees whose jobs you’ve made comfortable, enjoyable and convenient. With the right soft assets, you can ensure that not only are your employees happy, but your customers will be as well. Whether it means having the right equipment to allow your employees to work remotely, or the best software to make their jobs easier, keep them happy at any cost. This is a sure way to build on your hard assets in the long run.
There is no denying the efficiency that soft assets bring to your business. Budgeting software is just one example of an extremely valuable investment you can make for your company that will pay for itself before long. Whether automated budget rollups or a collaborative platform, all levels of management can not only take a stake in the organization’s bottom line but save lots of time doing it when you have the right software to manage the books.
The first thing you can do to make sure you are counting soft assets as valuable is to put them on your budget. When you start to see them there, you will start to see your attitude shift to a more all-encompassing approach to business that is becoming the new norm.