Property and Fixed Assets
Part 1 of a 3 part series
- Almost fully depreciated assets.
- Depreciation as a percent of sales significantly out of line with industry averages.
- Net sales to net fixed assets significantly out of line with industry averages.
Steps to Improve: SPACE
- Buy or rent “the bricks”.
- Don’t build the Taj Mahal.
- Space and location: Be sure both are right for your business.
- How much space do you really need? Do your customers visit?
- Sublet or share your unused space.
- Rent: Renegotiate your lease to reduce your occupancy costs..
- Rent: Renegotiate lease terms to mesh with business costs.
- Rent: Shift to short term leases to limit exposure.
- Use mail drops; business centers.