Business operations

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The process through which a company derives value from its holdings of assets is known as business operations. Both tangible and intangible forms of property may be considered assets. Rent is an illustration of value that may be generated from a physical asset, such as a building. A royalty is a good illustration of the value that may be produced from an intangible asset such as an idea. The work that goes into "harvesting" this value is what we mean when we talk about the cycles of company operations.

The term "sweating the assets" is often used to refer to the process of maximising the value that may be extracted from a company's assets via its business operations, which include the following three core management imperatives:

  • Create a source of consistent revenue.
  • Boost the value of the company's holdings and assets.
  • Ensure that the business's revenue and worth are protected.