Small and medium-sized enterprises represent 99 percent of all businesses in the EU and pave the way for continued growth and innovation on both micro and macro levels. However, such businesses risk missing out on growth opportunities by not embedding an asset management strategy into their operations or utilising the blooming B2B online marketplace as a source for acquiring new assets.
The B2B auctions market is growing rapidly, and is now worth £480m (€548m) in the UK alone as more companies identify them as a viable route to market, and in turn gain access to new customers around the world. As a result, buyers are in a more fruitful position than ever, with an influx of new products available to purchase. And yet, only a quarter of businesses currently use B2B auctions as part of an asset management strategy. Likewise, larger enterprises are potentially missing out on a valuable market that will enable them to capitalise on their surplus assets.
The key for businesses is to work with asset management specialists, which can help them to maximise opportunity through managing risk and building confidence. A complete asset management process includes understanding and identifying the correct value of assets, and coupling this with a comprehensive strategy that will guide businesses in meeting objectives and growth ambitions.
Although the concept of asset management and B2B auctions can seem daunting to many, there is a wealth of expertise on hand to guide you through making the right decisions, which will in turn stimulate vital growth.
1 – Know your vendor
The reputation and origin of the vendor are essential in ensuring a seamless transaction. Enlist the help of a specialist that can carry out a comprehensive background check and take this responsibility off your shoulders. The specialist will ensure that you are kept informed throughout the process, and that you are making a smart investment. This way you can focus on what matters the most: growing your business.
2 – Go global
Accessing the international auctions market means your business will have access to products that might not be available in the UK. Utilising such resources will put your business in the best position for growth through finding unique equipment that your UK competitors will not have access to. At Troostwijk Asset Management, we facilitate relationships between buyers and sellers from 127 countries. Most recently, we found a home for a discontinued crumpet machine all the way in New Zealand.
3 – Skeletons in the closet
Establish the identity of the dismantling contractors working on the auction, while also ascertaining whether they are specialists and if there are any additional costs involved. If the seller is from a known brand, you can be confident that they will have maintained the assets regularly. These details are integral in making sure the auction is successful and that the purchased assets are worth your investment.
4 – Decoding jargon
There are many technicalities associated with online auctions, so it’s important to define all the relevant terms and conditions. As with any business investment, understanding the terms of business is essential to safeguarding your purchase and long-term business growth. The outlined payment terms and collections dates are therefore critical in evaluating how attractive an asset is.
5 – Timing is everything
When should you make a bid? Often auctioneers will consider offers for assets prior to auction, especially for complete lines, so if it is critical or of particular interest to you then buying early may be the best tactic. Having a strategy in place for the bidding process and knowing when to act is essential to ensure all business investment objectives are realised.