RUN WITH THE Big dogS™ newsletter
 Volume 3, issue 18

What hidden assets are you not taking advantage of?...John

Management idea

When working to improve the bottom line, the natural tendency is to focus on increasing revenues and reducing expenses. Another approach is to review your use of assets.

At a CEO Club meeting the owner of a chain of radio stations discussed a hidden asset he discovered. By law, there was a limit on the number of radio stations one firm could own in a given metropolitan market.  Blocked from owning any more stations in their market, they acquired low cost radio stations north and south of the city.  One day they rotated their antennas to point toward the city – one station pointing south into the city the other north and simulcast to both.  Like magic, two cheap rural radio stations were converted into an extremely valuable metropolitan station.  

In a strategic planning meeting, one of our clients realized they were spending over $500,000 a year in rent for their many facilities.  They took the existing rent payments and for 20% down, were able to convert them into purchased buildings.  They converted an expense into an asset.