Step 3 Minimizing investment on fixed assets

NO NEED TO OWN JUST CONTROL

1. Why own when you can just control? i.e rent or lease
2. If you need to own, get it financed or on loans - borrowing is healthy
3. Alternatively rent or lease fixed assets
4. Justify you investment in fixed assets by the discounted cash flow techniques. (IRR or NPV)
5. Ensure no asset is idling or generating lower return.
6. Dispose asset if it is not generating a return higher than the return generated by the bank.
7. Fixed assets are those that are not being traded - normally kept to provide long term services or capacity.