asset management company business plan

Subscribe Sign In Register

A CEO’s Guide for How to Build an Asset Management Firm

Fundamental global founder kyle cerminara left point72 in 2012 to start his own firm. here’s how he did it..

• Copy Link copied

Illustration by II

Click on Kyle Cerminara’s Twitter page and you’ll find an image of him and Warren Buffett smiling into the camera. Scroll down to his pinned tweet, and there’s another photo with Buffett — but this time, Cerminara is hunched over, with Buffett’s arm locked around his neck.

The caption: “When Warren Buffett puts you in a headlock at a football game...”

For Cerminara, founder and CEO of Fundamental Global, relationships with other investors and industry professionals are critical to his success, a point he made clear in a series of tweets last week. In the thread, Cerminara offered “some unsolicited advice on how to build a multi-billion dollar asset management firm (from someone who did it).”

His first tip: “You will likely not succeed if you do it all yourself.”

Cerminara started Fundamental Global in 2012 with help from Joe Moglia, the former chairman of the board at TD Ameritrade. Moglia is now the chairman of the firm.

“People try to do too much all at once,” Cerminara told Institutional Investor . “I really wanted to focus my time and effort on investing. We brought in an exciting financial advisors team.”

Looking to set his firm apart from other asset management firms, Cerminara decided to make its financial advisory team client-facing.

“A lot of asset management companies these days are buying exchange traded funds or indexing,” he said. “And, quite frankly, anybody can do index funds, so I didn’t understand why that was of value to people. I thought that we could create something using active management.”

To turn this vision into a reality, the firm built an advisory team in a 50/50 joint venture with a firm called Capital Wealth Advisors. Under this structure, advisors met face-to-face with clients and reviewed their risk-reward parameters and liquidity needs, Cerminara said.

“It really freed me up to really be able to invest the money,” he said.

Cerminara has an interesting pedigree: He started his career as an equity research analyst at T. Rowe Price, where he worked his way up to a portfolio management role before leaving in 2007 to work for celebrity hedge fund manager Steven Cohen . Cerminara worked with Cohen over the next five years, taking a brief hiatus in 2010 to run a portfolio for Tiger Management descendent Highside Capital Management.

There was nothing particularly special about 2012 that prompted him to start his own firm. It was just the right time in his career, Cerminara said. Together, he and Moglia built an investment team from the ground-up, pulling talent from their former firms.

“In 2012 when I was starting my own firm, [Moglia] decided to bet big on me,” Cerminara said. “He initially gave us $30 million of capital to manage and became a partner of the firm.”

In December 2020, FG divested its interest from Capital Wealth Advisors. By then, Cerminara said the firm was handling about $2 billion in assets under management. In 2021, Cerminara sold his stake in the asset manager. He now spends his time building public companies, including working as a sponsor for special purpose acquisition companies.

Cerminara said his relationships with his mentors, specifically Moglia and Cohen, “compounded over time,” producing a rolodex of investors and partners for him throughout his career.

“Networking is critical,” he said. “I think some people that are great investors can sometimes undervalue that.”

• Platform OUR PRODUCT & MODULES Connected CMMS Maintenance Management Service Management Vendor Management Connected Workplace Work Order Management Inspections Asset Management Connected Buildings Utility Tracking & Benchmarking Energy Analytics & BI Cloud based Optimization Fault Detection & Diagnostics Connected Refrigeration Refrigeration Energy Optimization Remote Multi-site Monitoring Refrigerant Leak Compliance PLATFORM OVERVIEW Facilio O&M Platform Facilio IoT Edge Integrations Schedule time with a solutions expert
• Solutions By Industry Commercial Portfolios A complete real estate O&M suite built to boost building value Corporate Facilities Maximize efficiency and make 'experience' the new dimenson of your enterprise FM Services Empower workforce, make data-backed decisions, and create more value to clients Retail Enhance the in-store customer experience, operational efficiency, and run energy efficient stores across your portfolio. By Outcome Data-driven Portfolio Operations Remove friction points and ensure insight-led operations across buildings and teams FM Visibility More than just a CaFM/CMMS - gain contextual insights on contracted services 360* Asset Lifecycle Visualise assets, track performance, and streamline lifecycle processes Continuous Sustainability Close the energy efficiency gap by embedding sustainability with operations Customer Success at Facilio

Quick Guides

Our collection of playbooks on data-driven building operations to fuel efficiency. Get all the insights you need to improve portfolio operations.

Facilio Blog

Noteworthy articles on all things building ops. Strategies and videos on how to improve maintenance, sustainability, and tenant retention.

What's New with Facilio

We're constantly working to improve your Facilio experience so you can fasttrack your property operations to success. Here's what's new!

• Partners Become a Partner Locate a Partner AWS
• Company About Futureproof Careers Customers Contact Us Events

Featured Asset Management

Creating a strategic asset management plan (samp) with five handy steps.

Manaswini Rao

An asset management strategy is a high-level, strategic plan that defines the framework for accomplishing asset management objectives in an organization. It includes asset acquisition, planning, and maintenance.

An effective asset management strategy helps asset managers optimize the value and performance of tangible and intangible assets throughout the asset lifecycle .

As a result, you can reduce asset downtime, save on repair costs, increase productivity, and boost profitability.

By the end of this article, you will learn how to develop a strategic asset management plan and ways to simplify it with a computerized maintenance management system (CMMS) .

Why is an asset management strategy important?

An asset management strategy helps you create a long-term asset maintenance plan which eases asset condition assessment and optimization.

The result is a better return on asset (ROA), improved decision-making, and efficient resource allocation.

• Improved decision-making: An asset management strategy equips you with critical asset information to inform decisions like asset shutdown, turnaround, and outage (STO) to repair or replacement to operating expense (OpEx) prioritization. So, you’re better able to combine financial and non-financial strategies for decision-making and meeting the asset management objectives of the organization.
• Reduced costs: An asset management strategy also puts checks in place to track under-used, duplicate, or overused assets. This knowledge of asset utilization drives your understanding of equipment health. For example, overused assets are more likely to experience breakdowns at frequent intervals and go through costly repairs. Linking preventive maintenance with an asset management strategy helps you ensure cost savings and reduce the total cost of ownership (TCO).
• Better resource allocation: An asset management strategy helps you identify which assets cause bottlenecks, those that need upgrades or replacements, and how you can use the assets at your disposal to reach facility goals and objectives with maximum efficiency.
• What is strategic asset management?

Strategic asset management (SAM) is a top-down equipment management framework for long-term maintenance and operation planning.

This approach prioritizes long-term physical asset investments while balancing capital and operational expenditure from a total expenditure (TOTEX) standpoint.

An SAM framework provides a holistic view of current asset needs and what you’ll need 5, 10, or 20+ years down the line.

This framework gives you the data you need to make asset decisions that align with the company’s goals, instead of relying on budget and guesswork to manage assets.

Read  More: Integrate asset and energy management for real-time building performance

• What does an asset management strategy include?

SAM dives deep into the following areas to help you maximize the return on every dollar you spend.

Asset inventory

Understanding the assets you own, their state, energy utilization, useful life, and whereabouts helps you create a single source of truth for all decisions.

If you’ve been using pen-and-paper inventory or spreadsheets to assign unique ID numbers and maintain asset records, it’s time to migrate to an asset management system.

An infrastructure asset management system simplifies the upkeep of asset information. Plus, it helps you form a basis for maintenance planning, resource allocation, and continuous assessment.

Asset prioritization

Assessing assets and how critical they are for smooth business operations is vital to asset management success. To rank assets, you need to answer two questions:

• What are the chances of any asset experiencing failure?
• What are the consequences of asset failure?

Set parameters to define the probability and consequences of an asset's failure. This will allow you to establish risk tolerance levels and rank assets by criticality. Also, concentrate on the most critical assets to get the most out of your investment.

Maintenance plans

Create maintenance schedules for each asset based on manufacturer recommendations, location, condition, and impact on operations.

For example, production assets running infrequently will benefit from corrective maintenance , whereas highly critical assets need total productive maintenance to stay in good shape.

Life cycle management

Prioritize maintenance for assets based on risk, energy consumption, cost of replacement, or whichever factor matters most to you.

This eases day-to-day resource management and reliability engineering for assets. Additionally, it helps you figure out the capital budget for asset upkeep as per operation and maintenance (O&M) manuals .

Performance monitoring

Your SAMP should also include a reliability-centered maintenance process that monitors asset conditions.

ISO 55000, the international asset management standard, requires you to report on asset performance and the effectiveness of the asset management system.

The best way to meet this requirement is to leverage both reactive and proactive monitoring.

• Reactive monitoring uses periodic audits to spot existing nonconformities in an asset management system and find asset deterioration, or failures.
• Proactive monitoring incorporates procedures in your asset monitoring process to find what’s affecting asset performance and reliability.

You can also use leading and lagging metrics, like energy usage per unit or labor hours per unit, to understand what needs breakdown maintenance or how to reduce failure-centric deficiencies.

SAMP is essential to determine which goals are realistic, or if you’ll have sufficient funds to maintain assets for the desired level of service.

Maintaining an asset register with asset-related transactions also helps you tackle fixed asset depreciation and asset revaluation for fiscal reporting.

Risk management

Define a risk tolerance policy to measure safety and environmental risks to inform contingency plans to address specific risks.

These elements help you consistently meet service levels, manage utilities without service interruptions, and generate predictable revenues.

Is your CMMS doing enough to keep your assets in excellent shape? 

Your legacy cmms is probably costing you time, productivity, and money..

• What are the pillars of an asset management strategy?

A good asset management strategy relies on five key pillars to boost asset productivity while minimizing asset costs.

• Asset classification involves registering and sorting assets systematically based on their properties and attributes for easy asset management.
• Centralized asset information means you have all important asset data in one place. Companies using spreadsheets to manage asset information often struggle with data redundancy. Using an enterprise asset management system improves your asset management efficiency.
• Asset indicators offer real-time insights into asset performance. Common maintenance KPIs include mean time to repair, mean time between failures, availability, and downtime. They tell you which assets are more reliable and which have the longest downtimes.
• Maintenance plan usually combines preventive, corrective, and predictive maintenance techniques.

You can leverage a CMMS to plan and automate key maintenance tasks like:

• Preventive maintenance scheduling
• Unplanned and planned maintenance management
• Work order management
• Asset inventory tracking
• Real-time asset performance monitoring
• Energy consumption tracking
• Maintenance reporting
• Asset calibration involves scheduling, planning, executing, and analyzing equipment calibrations. Consider setting and meeting due dates for internal and external calibrations.

Now that you know the what , let's focus on the how .

• 5 steps to develop an asset management strategy

As you build or refine your asset management strategy, use these steps to reduce expenses and maximize asset performance.

1. Review the organization’s structure

Start by understanding how your organization operates or makes investment decisions. Then, you can focus on creating asset management goals that align with business objectives. Consider presenting strategic ideas to management and staff to win their confidence and support.

2. Conduct an asset condition assessment

Periodic asset monitoring gives you crucial data on the condition of each asset in your facility. This data tells you if the asset needs preventive maintenance to reach its expected useful life.

3. Prepare and implement an asset management action plan

These asset management initiatives altogether help you create an action plan. This implementation plan must support the current business cycle.

4. Review and monitor your progress

With an asset management system, you can capture data about asset performance and use it to optimize investment decisions.

Progress monitoring also reveals critical areas that you should prioritize in the next enterprise asset management strategy planning cycle.

5. Get feedback from all stakeholders

Conduct panels and focus groups with staff to hear their thoughts on existing asset management processes. This feedback lets you develop more effective solutions to meet organizational expectations.

Creating, enforcing, and m0nitoring the effectiveness of your strategic asset management plan is simple with a CMMS software .

Leverage a CMMS to streamline and automate 360° asset lifecycle management

A CMMS centralizes asset maintenance and performance data so you can easily track asset utilization, improve ROA, and stay compliant.

Modern maintenance management software like Facilio’s Connected CMMS also use IoT and machine learning to understand asset health and performance, and proactively maintain them to keep them performing at their peak, and prolong useful life.

Further, it simplifies asset condition assessment and digitizes compliance to realize improved asset value. It also gives data-driven insights for optimizing performance, health, and energy efficiency for different assets.

Overtime, using machine learning algorithms, it understands the faults and failures an asset is prone to, and determines failure modes to help you proactively tend to its maintenance needs.

The mockup shows how, by analyzing root cause of failure and automatically creating work orders, Facilio helps you eliminate unplanned equipment downtimes.

If you’d like to learn more about how Facilio’s Connected CMMS can help your organization switch from reactive to proactive maintenance, and keep your assets healthy and productive, our product experts are only a click away!

• Keeping your assets humming along is simple with Facilio.
• Is your CMMS doing enough to keep your assets in excellent shape? 

Gain 360° visibility into portfolio-wide O&M

We are Hiring!

© 2024 Facilio.Inc | All rights reserved

connect with us

Researched by Consultants from Top-Tier Management Companies

Powerpoint Templates

Icon Bundle

Kpi Dashboard

Professional

Business Plans

Swot Analysis

Gantt Chart

Business Proposal

Marketing Plan

Project Management

Business Case

Business Model

Cyber Security

Business PPT

Digital Marketing

Digital Transformation

Human Resources

Product Management

Artificial Intelligence

Company Profile

Acknowledgement PPT

PPT Presentation

Reports Brochures

One Page Pitch

Interview PPT

All Categories

Top 10 Asset Management Business Plan Templates with Examples and Samples

Siranjeev Santhanam

A partnership between an asset manager and his client based on trust, commitment, and responsibility can allow both parties to gain rich rewards and optimize available market resources.

Asset management is managing a customer’s money and maximizing earning potential through investments. This can be done through various avenues, ranging from stocks to property, funds, and other investment channels. Asset management figures perform this service for clients, allowing them to raise their net worth over time through investments, creating better spending opportunities, and making more informed decisions on behalf of their clients.

Do you have real estate management on your mind? Click here to read our blog on the top ten real estate management templates!

Asset management is a time-tested way to bolster one’s wealth and achieve better financial prospects. However, making a successful business out of this is more complicated than it sounds. It takes years of experience in the financial domain, coupled with significant hours of labor and some extensive resources, for an asset management firm to gain the kind of reputation that makes it worth people’s time.

In this blog, we will delve into a business plan meant for asset management. We will discuss all the leading segments of the template, giving readers a nice, good look at all the major areas of the slides. Let’s begin!

Table of Contents

• Executive Summary
• Company Overview
• Industry Analysis
• Customer Analysis
• Growth Potential Analysis
• Porter’s Five Forces Analysis
• Go-to-market Analysis
• Operational Plan
• Financial Assumptions
• Graphical Representation of Financials

1) Executive summary

Our executive summary section provides you with a well-crafted and comprehensive template that empowers you to curate your asset management brand, supplying the details in a more attractive way. Integrated into the segment are some core subsections that serve to make your executive summary more engaging and impactful. These include “ about the business,” where you can present data and statistics to support your brand image and demonstrate your competitive advantage, and the quick pitch , which helps to consolidate the value proposition and convey the unique selling point of the business. Also present are the subheadings, products and services offered , key success factors , start-up business summary , and more.

Download now

Are you struggling to get ahead in financial asset management? Allow us to present you with some well-curated templates that can make a difference. Click here to read our other blog covering financial asset management templates now.

2) Company Overview

With our company overview section, you can introduce your company, underline its core work culture, expand on its history and etiquette, and much more. With the aid of this segment, you can build bridges with the audience, giving them avenues to connect with your business and understand your operations and principles. This subheading is tailor-made to suit the needs of the asset management market, presenting all vital information and reliable data in a digestible manner. Create a more authentic and presentable image of yourself, enabling partners, clients, and any specific audience to trust your business with this segment. The subheadings in the template slides include the mission and vision statement and market gaps associated with asset management start-up business .

3) Industry Analysis

An industry analysis assists a business in knowing all of the multifaceted and intricate dynamics within a specific industry. Use our industry analysis segment to understand the trends, challenges, and opportunities that shape the asset management business and boost your position in the market. Create a more profound and richer knowledge of the industry as you seek reliable partnerships and attract funding from the right sources within the industry. Some key subheadings included in this document section are market analysis , market trends analysis , growth drivers , and geopolitical analysis .

4) Customer Analysis

Use the power of practical customer analysis to identify and understand all the essential needs of your target market, honing your business caliber to serve their personal preferences. Customize the internal dynamics of your asset management business to channel existing demands in the market. Our well-organized customer analysis section can be a fine ally in getting you all the support you need from within the core demographics that make the market. The subheadings featured within this template area are target market, buyer persona, and market sizing . Use the tools of this template to sync your business capabilities with the existing customer base and generate more revenue.

5) Growth Potential Analysis

The first part of this segment is the SWOT analysis . This framework gives businesses a data-driven strategic approach to assess the strengths, weaknesses, opportunities, and threats enveloping their business. Our well-structured SWOT analysis section can enable a more thorough internal evaluation of your asset management business, enabling you to create more effective responses to the changing market situations.

6) Porter’s Five Forces Analysis

Porter’s Five Forces Analysis can be a crucial tool in evaluating the competitive environment of a business. It features five key forces that help to establish the overall productivity and lucrative nature of the industry. The five forces here are – competition within the industry, potential new entrants in the same industry, the power of suppliers, the power of customers, and lastly, the threat of substitute products or services. Use these strategic methodologies to build a more competitive asset management business where you expand your market dominance and raise profitability.

7) Go-to-Market Analysis

A marketing plan is vital to any effective business process, and our template assists you in implementing the multi-layered steps that make marketing more productive. This segment has been divided into smaller, more important segments that can build a more efficient marketing characteristic for your asset management business. Some key elements that are featured within the slides of this template include promotional strategies, go-to-market strategies, sales strategies and pricing strategies . Fully explore the intricacies of marketing and gain a competitive edge on this front by applying the tools offered by this template.

8) Operational Plan

The operational plan of this template has been segmented into two major components – the service selling plan and the operational strategies of the year. Together, they make for a consolidated and structured method that any start-up in the asset management space can use to hone its effectiveness and develop better operations. The template comes ready-made with content that firms in this space can use to advance their operations, with internal points such as ‘asset management magazines,’ ‘campaigns to support online sales,’ ‘target market appropriate media,’ and more.

9) Financial Assumptions

Use the financial segment of our template to create a more integrated and cohesive account of your financial situation, building better commerce systems within the business. This segment has been split into some primary subheadings, all of which feature their own unique characteristics. Examples to be mentioned among the subsegments of the template include a projected financial plan , projected model and sales forecast , profit and loss statement, projected cash flow statement, projected balance sheet, and DCF valuation .

10) Graphical Analysis

Use this section to highlight key financial data in a visually appealing and understandable way, and use charts and graphs to enhance the experience. Craft a more stimulating and well-received account of your internal financial situation, outlining the trends, patterns, and connections between the commercial variables. Some key graphs featured as part of the segment include revenue from asset management start-ups, net earnings of business before tax and depreciation, asset management start-up business earnings after tax, gross profit from asset management start-up businesses, and many more.

Within the pages of this template are more exhaustive and comprehensive features that can aid you in creating better opportunities for yourself within the asset management market. This blog provides you with a brief gist of the main segments of the business plan, and once you get your hands on it, you can access a more complete version of it. Fully utilize the internal details of our business plan ppt templates to make a more thorough and intensive structure for your asset management business, avoiding all of the hazards and pitfalls as you get to the top.

Related posts:

• Top 10 Law Firm Business Plan Templates with Samples and Examples (Editable Word Doc, Excel, and PDF Included)
• Must-have Advertising Agency Business Plan Templates with Examples and Samples
• Top 10 Car Wash Business Plan Templates with Examples and Samples (Editable Word Doc, Excel and PDF Included)
• Top 10 Jewelry Business Plan Templates with Examples and Samples (Editable Word Doc, Excel and PDF Included)

Liked this blog? Please recommend us

Top 10 Capability Deck Templates with Examples and Samples

Top 10 Lease Proposal Templates with Examples and Samples

This form is protected by reCAPTCHA - the Google Privacy Policy and Terms of Service apply.

Digital revolution powerpoint presentation slides

Sales funnel results presentation layouts

3d men joinning circular jigsaw puzzles ppt graphics icons

Business Strategic Planning Template For Organizations Powerpoint Presentation Slides

Future plan powerpoint template slide

Project Management Team Powerpoint Presentation Slides

Brand marketing powerpoint presentation slides

Launching a new service powerpoint presentation with slides go to market

Agenda powerpoint slide show

Four key metrics donut chart with percentage

Engineering and technology ppt inspiration example introduction continuous process improvement

Meet our team representing in circular format

How to Develop and Write an Asset Management Strategy

An asset management strategy is a document that outlines where your current asset management efforts stand, assesses changes that need to be made within the next 3–5 years, and outlines the high-level actions you need to take to get there. 

This guide will e xplain the difference between an asset management policy and a strategy and share the information you will need to write your strategy with real-life examples.

Where does the asset management strategy sit in the document hierarchy?

Businesses use an asset management strategy to describe the high-level goals they need to achieve in order to meet the company’s asset ownership, use, and care requirements. The document usually includes a business case showing the potential benefits the company can achieve by following the outlined strategy.

The image below illustrates where the asset management strategy sits in the asset management document hierarchy.

Here are quick explanations to help differentiate between a policy, strategy, and plan:

• Asset Management Policy : The policy outlines the company’s objectives and requirements for asset ownership, use, and care. It provides guiding principles for asset management, including applicability, responsibility, high-level procedures, and a clear statement of the company’s overall approach to maintenance. 
• Asset Management Strategy: A strategy document takes the company objectives and requirements from the policy, and turns them into specific focus areas for the next three to five years. It outlines the current state of asset management within the company and its goals for improvement. It often includes a business case that predicts potential benefits of pursuing the strategy.
• Asset Management Plans : A plan takes the high-level aspirations and goals in the strategy document and turns them into shorter-term, actionable tasks. One strategy document will result in many plans, usually one for each department or business unit.

Now that we know its purpose, let’s see what it takes to create a proper asset management strategy.

The Essential Guide to CMMS

The steps for developing your asset management strategy

There are clearly many details and considerations that go into creating an effective asset management strategy. So how does an organization create one? 

By taking the following steps, you’ll end up with an asset management strategy that captures all the necessary details, fits the needs of your company, and sets the stage for effective asset management that supports your business plan.

Step #1: Identify a project sponsor

Creating an intricate, strategic approach to improving your asset management processes is a waste of time if nobody acknowledges or follows the guidelines. 

Appointing a senior manager as a project sponsor provides several benefits:

• Their involvement gives authority to the strategy production and provides line of sight to its impact across departments.
• Active involvement by the sponsor removes organizational roadblocks and helps with work prioritization — which keeps the strategy on track.
• A member of senior management will facilitate buy-in and decision-making from other leaders and ensure accountability for the strategy.

Step #2: Identify the project leader

The project leader manages the development of the asset management strategy. In this role, they are responsible for:

• Ensuring the process gets completed within time and budget constraints. 
• Liaising with the project sponsor to brief them on progress.
• Considering all relevant data and other company information necessary for a thorough and thoughtful outcome. 

In a small company, the project leader may also perform the data collection and writing of the strategy document. Larger companies may use a small team, which the project leader will manage.

Step #3: Assemble and analyze all data and documents

This is a time-intensive step that often requires data from multiple departments including engineering, maintenance, finance, procurement, and production. 

You will analyze this data to evaluate the effectiveness of your current asset management strategy and how well it meets business objectives. We will discuss more details of data analysis in a later section.

Data collection and analysis is considerably easier if your company uses a centralized database like an asset management software, a computerized maintenance management system (CMMS) , or an enterprise resource planning system (ERP).

Step #4: Outline the strategy

After analyzing the data, you should have clear insights into your current asset management practices, their effectiveness, and their efficiency. The data will point you to:

• Current activities and processes that deliver less than desirable results.
• High-level changes and initiatives to include in your strategy to work toward improvement.
• Potential benefits of pursuing those high-level changes and shifts in strategy.

During this process, the project sponsor will be a key resource providing guidance, insight, and support from management and other departments.

Step #5: Write the strategy

At this stage, you should have all the necessary pieces to formalize the strategy. 

The writing process should present a narrative explaining the current state of asset management in your company and the benefits of making a change. It should also outline general actions, deadlines, and targets. 

This can sound a little abstract. In the following sections, we will look at a few real-life examples, show you how to structure the document, and review what to include.

Step #6: Get approval from top management

Top management must review and accept the proposed language for your new asset management strategy to ensure it aligns with business objectives. Approval from decision-makers means it is ready for implementation and employees will be held accountable for carrying it out.

Enter the document into your quality system for revision and amendment control. Any major changes should require resubmission for further approval. 

Step #7: Implement the strategy

Sending out the document and expecting compliance will not work. There is an education component to implementation. Ensure all employee groups are trained and fully understand the goal of the strategy and their role in achieving it.

While they might have helped you gather data in previous steps, this is probably the first time they’re seeing the final strategy. They need to buy into the final product and believe it will be an improvement if you want it to be fully embraced and followed.

The data collection process

The data you collect in step four will be used for a gap analysis. This analysis will show the “gap” between how efficient your assets are today, and how efficient they could be at their best. It will also shed light on the operational and capital costs they incur. 

There are two components to consider for the gap analysis: current performance and theoretical maximum efficiency.

Benchmarking current performance

Find out what key performance indicators (KPI) your production team uses to measure their efficiency and effectiveness. Examples include equipment downtime (or uptime) and setup time.

Many of these measures will be in percentages. However, we recommend translating them into actual, data-driven outputs — whether the numbers of products, frequency of stock turns, or the count of non-conforming products. 

Remember, raw data is easier to relate to!

Identifying theoretical maximums

What could your plant achieve if everything ran like clockwork? 

To answer that question, gather original equipment manufacturer data or the asset performance results from similar plants that are an example of best practice. 

For example, if the KPI you are using is OEE (overall equipment effectiveness) , an often-quoted best OEE rating for a pure manufacturing plant is 85%. That would require equipment availability, performance, and quality metrics to be in the mid to high 90-percent range. 

If your OEE rate is 68%, you know the performance management gap you need to close through asset strategy management.

Capturing operational and capital costs

By capturing data on the cost of your current performance, you have a baseline against which you can compare future costs. Comparing these over time will show you the financial impact of the changes you implemented as part of your updated strategy.

Consider operational budgets — like engineering, maintenance, and spares turnover. Capital costs for asset replacements may also be important, as poor asset life cycles or frequent modifications require more capital spending, and thus can reduce profitability. 

Revenues, cost savings, and operating costs will be key to measuring production efficiency.

Developing your asset management strategy

With the gap analysis done, you must define the strategies that will close the gap between current and desired performance. These will become the basis for your strategy document.

Articulate an operational vision

Define a clear production goal for the business. It should be a stretch goal with measurable targets on a five to ten-year horizon.

For example, you may choose to:

• Reduce maintenance costs by V%
• Improve cycle time by W%
• Increase production capacity to X units
• Increase equipment reliability to 93%
• Move the factory to total productive maintenance (TPM)

Define the required high-level actions

Identify the broad practices the organization must change or implement to achieve the goals. These action plans should span three to five years due to the impact on employee workload, the available resources, and the budget.

Stay away from operational details and optimization . Leave that to the people writing the asset management plans .

Establish a business case

The effect of the changes on costs and production will have to be explained in order to justify the strategy. The business case you present should lay out the financial and operational justification and the expected change in key performance indicators .

Structuring your asset management strategy document

While the layout of such documents varies widely across industries and countries, the following list provides a basic key components that you may want to include in yours.

The summary should come first in the document to allow senior management to review the document’s findings without wading through all the details. It must be concise, highlighting the strategy’s key points, costs, benefits, and outcomes.

2. Purpose and scope

Describing the purpose and scope in-depth establishes strategic alignment with business needs. 

Describe why an asset management strategy is required and what it seeks to achieve. The strategy’s scope should explain the affected business areas and the time period — in years — to which the document applies.

3. Current assessment

This chapter summarizes the outcomes of the data analysis. Show how a world-class production environment in your industry performs in terms of output, delivery, or cost. Then describe how your business compares, based on your findings. 

Cover maintenance and reliability comparisons, including: 

• Overall equipment effectiveness (OEE) rates
• Reliability performance
• Cost per unit produced 

This chapter should also clarify why effective asset management is important, why changes are required, and how far the business has to go to achieve best-in-class operations.

4. Vision for future operations

When crafting the vision, describe what the business could look like in five or ten years. Be sure to focus on more than just production and maintenance metrics. Illustrate: 

• How the company culture may have changed
• What the organizational structure may have evolved into
• How roles and responsibilities will have altered
• Any physical changes or modifications that may have occurred to the structure of the business.

Avoid making unbelievable statements. 

If your business is in the third or fourth quartile for industry benchmarks, promising world-class performance in three years undermines the document and the analysis that supports it. You’ll struggle to gain buy-in, and your strategy is likely to fail. 

What creates support are realistic, continuous improvement targets, and a real business case that acknowledges the difficulty of the journey .

5. Strategic focus

Outline the key areas the organization needs to focus on over the timeframe covered by the strategy document. You had hundreds of areas for improvement to choose from. Yet, you selected only six to eight of them. Explain why.

Having clarified the focus, describe the expected outcomes. These must logically align with and help close the gaps between actual and theoretical performance. 

Finally, outline the processes to follow. 

For example, assume you have identified OEE as one focus area. Explain that the targets for improvement are equipment availability and performance, and the processes to be implemented will include reliability-centered maintenance and root cause analysis techniques .

6. Business case

This is the part of the document where you’ll need to make assumptions about the year-over-year improvements, the costs required to implement the changes, and the resulting benefits. 

Remember to include financial costs and benefits, as well as cultural, political, environmental, or technological gains. 

The business case is a justification for the strategy based on what the company expects to earn from improved production efficiency .

This section is your project plan. It outlines major milestones and timelines, indicating the required resources and the expected deliverables. It becomes the guideline for managers tasked with writing asset management plans.

8. Responsibilities and KPIs

The company’s asset management strategy will affect a wide cross-section of the organization. Therefore, the stakeholders and roles that are pivotal to the plan’s success must have clearly defined responsibilities.

It should also include key metrics, describing what will be measured, how to calculate KPIs, and the results expected over the strategy’s life.

Examples of public asset management strategies

Most privately owned companies do not publish their asset management strategies, given the confidential information they contain. But many public entities like councils or government organizations must publish theirs. 

Here are three examples,  along with some notes on what they do right.

• South Australian Government : This asset management strategy works at the right level, without dipping into unnecessary detail. It describes areas of focus and gives guidance on things to consider when individual agencies formulate their plans. Great examples are the life-cycle costing and asset register chapters on page nine.  
• Eastleigh Borough Council : This council’s strategy has a good example of a forward plan , describing key strategic objectives. 
• Kent County Council : This comprehensive plan has a good introduction, context, and purpose section. The vision and mission descriptions are first-class, and the strategy breakdown into thematic chapters is a great example of clear communication.

Start sooner rather than later

An asset management strategy drives improvements by comparing actual with ideal performance. By highlighting this performance gap and identifying priorities, best practices, and problem areas, the strategy sets goalposts for maintenance and other middle managers. 

It provides a clear case for change and sets expectations on timelines and results, providing a map for the organization to follow in the next three to five years. 

When done well, it supports constant incremental improvement for businesses that are intent on maintaining competitiveness through best-practice asset utilization.

To learn more about asset management and maintenance, keep browsing the Limble blog .

Subscribe to the Limble Blog

Request a demo.

See us at Cultivate’24 | July 13-16 | Columbus, OH

• Inventory Management
• Order Management
• Freight Management
• Truck Driver App
• Dock Door Scheduling
• Reporting and Analytics
• Asset Management
• Human Resources

Argos Software and Services

ABECAS Insight software and services are built and delivered around a core base of tools.

• ABECAS Insight
• Implementation
• Support & Consulting

Argos Software Industries

We offer both industry-specific and general software modules to meet a wide variety of business requirements, all built atop a financial accounting core.

• 3rd Party Logistics (3PL)
• Nursery, Greenhouse, & Growers
• Warehousing
• Asset-Based Trucking
• Cold Storage

Integration

• Shipping Integration
• EDI Integration
• API Integration

Argos Software Resources

Don’t miss our recent updates. Subscribe to Warehouse Best Practices.

• Trade Shows & Events
• White Papers

About Argos Software

It’s the best software for running a small-to-medium sized business or a division of a larger company where the focus is on understanding and controlling costs as a path to increased profitability.

• Our History

Recent Blogs

Top Cannabis Software Features to Optimize Your Business for Growth

By Christen Thomas | 2024-05-06T23:00:24+00:00 April 16, 2024 |

The Essential Guide to Business Asset Management

By Christen Thomas | 2024-05-07T01:19:13+00:00 April 3, 2024 |

Warehouse Slotting: A Comprehensive Guide to Maximizing Efficiency

By Christen Thomas | 2024-05-07T01:23:08+00:00 February 28, 2024 |

• Search for:

Christen Thomas

April 3, 2024

In today’s rapidly evolving business landscape, the efficient management of both physical and infrastructure assets stands as a cornerstone of operational success. Business asset management, a discipline that extends beyond the financial management of stocks and bonds, encompasses the strategic oversight of all valuable resources within an organization. This broad spectrum includes everything from tangible machinery and facilities to intangible assets like software and intellectual property. Effective management of these assets is crucial, not only for safeguarding them but also for optimizing their use to drive business growth and performance.

The significance of both physical asset management and infrastructure asset management cannot be overstated. As businesses across various sectors grow and integrate advanced technologies, the assets they rely upon become increasingly sophisticated and interconnected. This complex web of assets presents a challenge: ensuring they contribute positively to the bottom line through a comprehensive strategy that goes beyond mere inventory or maintenance. It involves creating a robust system where assets are monitored and managed from procurement through to disposal, thus ensuring they deliver maximum possible value throughout their lifecycle.

This guide aims to provide professionals across all industries with the insights and strategies necessary to excel in asset management. By adopting a holistic approach to the management of both tangible and intangible assets, organizations can unlock new levels of efficiency, sustainability, and competitive advantage. Whether you are in logistics, manufacturing, tech, or any field in between, mastering the principles of asset management is key to navigating the complexities of today’s business environment and securing a prosperous future.

Understanding the Basics of Asset Management

What is asset management.

At its core, asset management is the holistic approach to overseeing every asset within an organization to maximize value and minimize costs and risks. These include both physical or tangible fixed assets and non-physical, or intangible assets. This practice differs significantly from personal or financial asset management, focusing instead on the tangible and intangible assets that drive business operations forward. It involves a strategic blend of procurement, utilization, maintenance, and disposal to ensure each asset’s optimal performance and contribution to the business goals.

Types of Assets

A thorough understanding of the various types of assets under management is essential for developing and implementing effective asset management strategies. Generally, assets can be categorized into three broad groups: physical and infrastructure assets, intangible assets, and digital assets. Here’s a closer look at each category:

• Machinery and Equipment: Essential for manufacturing processes, maintenance work, and more.
• Vehicles and Fleets: Used for transportation, logistics, and delivery services.
• Buildings and Facilities: Encompasses office spaces, warehouses, and manufacturing facilities.
• Infrastructure: This subcategory includes the vital systems and structures that support a company’s operations, such as power grids, water and sewage systems, and communication networks. Infrastructure assets are crucial for both public services and private sector operations, requiring comprehensive management and strategic planning to ensure their reliability and efficiency.
• Software Licenses and Patents: Protect and provide exclusive rights to use innovative technologies and processes.
• Trademarks and Brand Recognition: Crucial for marketing, customer recognition, and establishing a reputable brand identity.
• Intellectual Property: Encompasses proprietary research, designs, and creative work. Managing these assets involves legal protections, licensing agreements, and strategic deployment to safeguard and leverage their value.
• Data and Information: Customer databases, analytical reports, and operational data that drive decision-making and strategic planning.
• Digital Content: Marketing materials, digital products, and online content that require management for copyright, distribution, and monetization.

By recognizing the diverse nature of assets, businesses can tailor their asset management strategies to address the unique challenges and opportunities each type of asset presents. Effective asset management ensures that physical, infrastructure, intangible, and digital assets are not only protected but also optimally utilized to contribute to business growth and sustainability.

Core Components of Effective Asset Management

Asset inventory and documentation.

One of the first steps toward achieving effective asset management is establishing a comprehensive asset inventory and maintaining detailed documentation. This process involves creating a systematic record of every asset owned by the business, including both tangible or fixed assets, and intangible assets. For tangible assets, this would encompass details such as serial numbers, purchase dates, costs, and current locations. For intangible assets, it includes licenses, patents, and copyrights, along with their acquisition dates and values.

The importance of maintaining this inventory cannot be understated. It serves as the backbone of any asset management strategy, enabling businesses to track the status and performance of their assets throughout their lifecycle. Additionally, well-kept documentation aids in compliance with regulatory standards, financial reporting, and strategic planning. It also simplifies the process of asset verification, valuation, and insurance.

Asset Tracking

In today’s digital age, the methodologies for tracking physical and digital assets have evolved significantly. Beyond traditional barcode systems and RFID tags, businesses now leverage GPS trackers, IoT sensors, and cloud-based software platforms for real-time asset monitoring. These technologies provide instant visibility into the location, condition, and performance of assets, facilitating proactive management.

Real-time asset tracking allows businesses to respond swiftly to changes in asset status, reducing downtime and preventing losses due to theft or misplacement. Moreover, integrating this data with asset management software can automate maintenance schedules, update asset records, and inform decision-making processes. For digital assets, software solutions can monitor usage, ensure compliance with licensing agreements, and protect intellectual property rights.

Lifecycle Management

Understanding and managing the lifecycle of an asset is central to maximizing its value and efficiency. Lifecycle management, whether for physical or infrastructure assets, or intangible assets,  encompasses the stages from asset acquisition, through its operational use, to its eventual disposal or renewal. By strategically managing each phase, businesses can extend asset life, optimize their use, and ensure their assets remain a source of value rather than a cost burden.

• Acquisition: Making informed decisions about which assets to acquire, considering not only the purchase price but also the total cost of ownership, including maintenance, operation, and potential resale value.
• Operation: Ensuring assets are utilized effectively, maintaining them in good working order, and making adjustments as business needs change.
• Maintenance: Implementing scheduled maintenance and adopting predictive maintenance strategies to prevent failures and extend asset lifespan.
• Disposal or Renewal: Deciding when it’s more cost-effective to retire an asset and replace it, considering its residual value, the cost of continued maintenance, and the benefits of newer technology.

Maintenance Scheduling and Management

Regular maintenance is critical to extending the lifespan of assets, ensuring they perform efficiently and reducing the likelihood of unexpected breakdowns. Advanced techniques in maintenance scheduling, such as predictive maintenance, leverage data analytics and IoT sensors to anticipate failures before they occur, scheduling interventions only when necessary.

Choosing between in-house and outsourced maintenance involves weighing the cost and expertise associated with each option. While in-house teams provide control and rapid response, outsourced partners can offer specialized skills and scalability. Whichever choice is made, it’s essential to integrate maintenance activities into the broader asset management strategy, ensuring they contribute to overall business objectives and asset performance optimization.

In these sections, we’ve outlined the foundation of effective asset management, focusing on inventory documentation, tracking technologies, lifecycle strategies, and maintenance practices. As we move forward, we’ll explore additional aspects that contribute to a holistic asset management approach, including financial management, technological advancements, and strategic practices for risk management and compliance.

Depreciation Tracking and Financial Management

Depreciation tracking is a crucial component of managing fixed assets, allowing companies to understand the diminishing value of their tangible assets over time. This process is not just about compliance with accounting standards; it’s a strategic tool that informs decisions on asset maintenance, replacement, and disposal. By accurately tracking depreciation , businesses can ensure they’re making informed investment decisions, optimizing their tax benefits, and maintaining accurate financial records.

Financial management in asset management extends beyond depreciation tracking. It encompasses the total cost of ownership (TCO) analysis, investment planning, and the alignment of asset acquisition with financial goals and capabilities. Effective financial management ensures that assets are not only contributing to operational efficiency but also aligning with the company’s broader financial strategy, including budgeting, forecasting, and liquidity management.

Technology in Asset Management

In the realm of asset management, technology plays a pivotal role in enhancing the visibility, efficiency, and control of assets across various industries. The adoption of cloud-based software solutions marks a significant advancement, offering businesses the ability to centralize asset information, streamline processes, and facilitate real-time decision-making. These platforms are designed for scalability and provide remote access, ensuring that businesses can manage their assets effectively, regardless of their size or geographic distribution.

Moreover, the integration of Remote Access Technology (RAT) and other mobile solutions into asset management systems has revolutionized how field personnel, such as drivers and sales teams, interact with assets in real-time. This connectivity ensures that data is consistently updated and accessible, enhancing the responsiveness and agility of businesses in managing their assets.

For instance, systems like Argos Software utilize these technologies to offer comprehensive asset management solutions. By integrating e-mail and file export capabilities, along with the automatic generation and distribution of reports and documents, such platforms ensure seamless communication and efficiency. The ability to define alerts and receive automatic notifications helps businesses stay ahead of potential issues, enabling proactive management of assets.

Additionally, the integration of various external tools and services, including RF and handheld devices, further extends the capabilities of asset management systems. This interoperability allows for the efficient tracking and management of assets, reducing errors and improving overall operational efficiency.

The technology landscape in asset management continues to evolve, driven by the need for greater efficiency, accuracy, and control. As businesses strive to optimize their asset management practices, the adoption of advanced technological solutions remains a critical strategy for achieving operational excellence and competitive advantage.

Strategic Asset Management Practices

Risk management.

Identifying and mitigating risks associated with asset utilization and ownership is paramount in asset management. This includes physical risks to tangible and infrastructure assets, such as damage or theft, and operational risks, such as downtime due to unexpected failures. Effective risk management involves regular risk assessments, the implementation of preventive measures, and the development of contingency plans to ensure business continuity.

Policy and Compliance

Ensuring that asset management practices meet industry regulations and standards is critical for legal compliance and operational excellence. This encompasses everything from environmental regulations and safety standards to financial reporting requirements. Developing clear policies and procedures for asset management not only helps in meeting these requirements but also in standardizing practices across the organization, enhancing efficiency and accountability.

Performance Monitoring and Optimization

Monitoring the performance of assets and seeking ways to optimize their utilization is essential for maximizing return on investment. This involves regularly reviewing asset utilization rates, maintenance costs, and overall contribution to business goals. Performance data can inform strategic decisions on asset reallocation, upgrades, or divestment, ensuring that the asset portfolio remains aligned with changing business needs and market conditions.

Sustainability and Asset Management

Integrating sustainability into asset management practices is increasingly recognized as a key driver of long-term value creation. This includes considering the environmental impact of assets throughout their lifecycle, from acquisition to disposal. Sustainable asset management practices can reduce waste, lower energy consumption, and minimize the carbon footprint of operations, contributing to a company’s social responsibility goals and improving its reputation among consumers and investors.

The comprehensive approach outlined in these sections, from financial management and technology adoption to strategic practices and sustainability, forms the foundation of effective business asset management . As businesses continue to navigate a dynamic operational landscape, the principles and practices discussed here will be pivotal in leveraging assets as strategic tools for growth and competitive advantage.

Implementation and Best Practices

Implementing a robust asset management system requires careful planning, consistent execution, and continuous improvement. Here are key strategies and best practices to ensure the successful deployment and management of an effective asset management framework.

Assessing Your Current Asset Management Maturity

Understanding your organization’s current level of asset management maturity is crucial before embarking on any improvement initiative. This involves evaluating existing processes, technologies, and practices against industry standards or best practices. Tools like maturity models can help identify gaps in areas such as documentation, tracking, maintenance, and financial management, providing a clear roadmap for advancement.

Developing an Asset Management Plan

A strategic asset management plan (AMP) outlines how an organization’s assets will be managed to achieve its overall strategic plan. This plan should include:

• Goals and objectives for asset management.
• Roles and responsibilities within the asset management team.
• Standards and practices for asset acquisition, maintenance, and disposal.
• Strategies for risk management, compliance, and performance optimization.
• A technology roadmap for implementing or upgrading asset management tools and systems.

Change Management

Successfully implementing a new or revised asset management strategy often requires changes to organizational culture, processes, and technology. Effective change management strategies can facilitate this transition, ensuring buy-in from all stakeholders. Communicate the benefits of effective asset management clearly and consistently, provide training to relevant teams, and involve key stakeholders in the planning and implementation process to foster a culture of continuous improvement.

Training and Development

Investing in training and development is essential for building asset management competence within the organization. This includes both technical training on asset management tools and systems, and broader educational initiatives on best practices and principles. Regular training sessions can help ensure that staff are up to date with the latest asset management strategies, technologies, and regulatory requirements.

Leveraging Data and Analytics

In the era of big data, leveraging data analytics is a powerful strategy for optimizing asset management. Data collected from IoT devices, asset management software, and other sources can provide valuable insights into asset performance, maintenance needs, and utilization patterns. Analytics can help identify trends, predict failures, and inform strategic decision-making, enabling organizations to move from reactive to proactive asset management.

Choosing the Right Asset Management Software

Selecting the right asset management software is pivotal to enhancing operational efficiency and achieving strategic asset management goals. Key features to look for include:

• Compatibility with existing systems and technologies.
• Scalability to accommodate business growth.
• Real-time tracking and reporting capabilities.
• Customizable dashboards and reports.
• Support for predictive maintenance and analytics.

Challenges and Solutions in Asset Management

Common challenges.

Asset management teams often face challenges such as data silos, outdated systems, and resistance to change. These obstacles can hinder the effective tracking, management, and optimization of assets.

Solutions and Workarounds

To overcome these challenges, businesses can:

• Implement integrated asset management solutions to break down data silos.
• Regularly review and update asset management technologies and processes.
• Foster a culture of innovation and continuous improvement through training and change management practices.

The Future of Asset Management

Emerging trends.

Technological advancements such as artificial intelligence (AI), machine learning (ML), Internet of Things (IoT), and blockchain could further revolutionize asset management. These technologies offer potential new ways to track, manage, and optimize assets, driving efficiency and value creation.

Preparing for the Future

Staying ahead of emerging trends requires a proactive approach. Organizations should:

• Keep abreast of technological developments and industry best practices.
• Invest in technology and skills development.
• Experiment with new technologies on a small scale before full implementation.

Argos Software: Your Strategic Asset Management Solution

As businesses navigate the complexities of asset management, the need for a comprehensive, adaptable solution has never been more apparent. Argos Software, with its rich history of innovation and dedication to efficiency, presents a robust platform designed to streamline asset management across various industries. Our suite of features is not just a testament to our expertise but a reflection of our commitment to transforming the way businesses manage their assets.

Tailored Solutions Across Industries

Argos Software is engineered to cater to the unique challenges and dynamics of multiple sectors, including 3PL providers, agribusiness, transportation, and more. Each solution is meticulously designed with industry-specific functionalities to enhance operational efficiency and strategic decision-making.

• For 3PL Providers : Argos offers an end-to-end warehouse management solution, embracing advanced features like value-add transactions and storage billing, crucial for the complex demands of a 3PL environment.
• In Agribusiness : From seedling cultivation to stock management and shipping, Argos software provides comprehensive visibility and control, ensuring the seeds of hard work bear fruits of efficiency and productivity.
• Transportation and Freight Management : With features like advanced route optimization and real-time shipment tracking, Argos software is the ultimate tool for efficient logistics management.

Comprehensive Asset Management Features

Our Asset Management suite is a testament to our comprehensive approach, offering:

• Real-Time Asset Tracking and Visibility: Ensure every asset is precisely where it needs to be, when it needs to be there, with our advanced tracking solutions.
• Lifecycle Management: From procurement to disposal, maximize ROI with strategic insights into each asset’s journey.
• Maintenance Scheduling: Automate and optimize maintenance schedules to keep assets in peak condition, reducing unexpected breakdowns and extending asset lifespan.
• Depreciation Tracking: Stay ahead of financial planning with accurate, up-to-date depreciation records, aiding in strategic asset investment decisions.
• Customizable Dashboards and Reporting: Gain a holistic view of your asset portfolio with tailored operational insights, driving informed decision-making.

Why Choose Argos?

Choosing Argos Software means more than just accessing a top-tier asset management solution; it means partnering with a team that understands the nuances of your industry and the challenges you face. Our flexible, modular system allows you to tailor the software to your specific needs, ensuring that you only pay for what you need. Argos is committed to continuous improvement and innovation, ensuring our solutions evolve with your business.

In the ever-evolving world of business, effective asset management is not just a necessity but a strategic advantage. With Argos Software , businesses have a partner poised to elevate their asset management strategy, harnessing technology, industry expertise, and a commitment to excellence. As we look towards the future, Argos remains dedicated to empowering businesses with the solutions they need to manage their assets intelligently, efficiently, and profitably. Join us on this journey to redefine asset management and unlock the full potential of your business operations.

Request a Demo

Discover how Argos Software can transform your asset management practices, streamline your operations, and drive your business forward. Contact us today to request a demo and explore a partnership that grows with you, offering the tools and insights needed to excel in today’s competitive landscape.

Recent Blog

In today's rapidly evolving business landscape, the efficient management of both physical and infrastructure assets [...]

Struggling with warehouse organization? ‘Warehouse slotting’ might be your answer. It’s not just about orderly [...]

Mastering Business Intelligence Reporting: A Manager’s Guide

Discover how to effectively utilize business intelligence reporting to drive informed decision-making and improve organizational [...]

Table of Contents

Subscribe to Email For Updates

Argos’ ABECAS Insight is all-in-one business management software that’s flexible and modular, offering the functionality of an enterprise (ERP) solution at a fraction of the cost. ABECAS Insight is ideally suited for companies in 3PL, transportation, agriculture, field service, and utility industries, and for small- and medium-sized businesses selling to other companies (B2B).

8770 West Bryn Mawr Ave, Suite 1300 Chicago, IL 60631

+1-888-253-5353 +1-559-227-1000

© 2024 Argos Software. All rights reserved

Privacy Policy | Terms and Conditions  | Cookie Policy

Asset Intelligence and Management

• EZOfficeInventory

Physical asset management software for total visibility and efficiency

EZO AssetSonar

Automated IT asset management for hardware and software

Maintenance operations management solution for equipment and facilities

Equipment rental software to manage your business

EZOfficeInventory Blogs Asset Management Plan

5 Top Ways to Efficiently Implement an Asset Management Plan 

• May 10, 2024
• Rida Fatima

Creating a sound asset management plan is the core of smooth business operations. It provides a blueprint for organizations to achieve excellence in managing assets effortlessly – by defining criteria to handle asset-related emergencies. 

Businesses usually have a variety of assets to maintain, necessitating a strategic asset-tracking approach. These plans include effectively using assets, improving their lifecycle, and maximizing their utility. Asset management plans can be best achieved when implemented with cloud-based systems. 90% of organizations use cloud-based systems to manage their assets and almost 48% plan on adopting one eventually. 

This blog takes you through the basics of the asset management plan, and how it can be implemented using an asset management system.

What is an asset management plan (AMP)?

An asset management plan is a structured process outlining how an organization can manage assets throughout their lifecycle. It covers the broader asset infrastructure of your organization and provides an integrated approach to operating and maintaining assets. 

Asset management plans are used widely by government agencies, healthcare organizations, and construction companies to mitigate risks. The aim is to streamline organizational management efforts while achieving performance goals and establishing asset control . These plans help organizations optimize their asset use and maintain optimal stock levels. 

Core features of an asset management plan

There are some core features of an asset management plan that help organizations manage different types of assets, including: 

1. Asset inventory list

It serves as a list of all the items managed by your organization, including backup assets, consumable inventory, and usable equipment. Having this repository helps organizations organize their assets and plan future steps accordingly. 

2. Lifecycle management 

Asset lifecycle management involves planning how the asset will be managed throughout its life, from its acquisition to disposal. The approach is designed to strategically manage assets to optimize their procurement, maintenance, and disposal. 

3. Risk management

Involves identifying, assessing, and mitigating risks associated with acquiring, and maintaining assets. An asset plan lists potential risks that can impact the functionality of assets and steps to rectify or avoid them over time. By addressing risks beforehand, organizations can prevent financial losses and reduce the likelihood of asset failures. 

4. Financial planning

Creating a financial plan to manage budgets and allocate resources for efficient asset management forms the foundation of business operations. It involves laying out a detailed plan to allocate funds for resources that are required the most as per business/project needs. 

5. Performance measurement

Setting Key Performance Indicators (KPIs) to measure business performance helps determine if you have achieved your goals. The asset plan is targeted toward achieving these KPIs and identifying and analyzing the areas that need improvement. This stage helps optimize asset utilization and deploy unused assets to maximize operational efficiency. 

How does an asset management plan increase business productivity?

An asset management plan helps yield the maximum benefit from assets and utilize them to their fullest potential. With strategic asset management planning in line with the system you use, you can increase asset reliability and performance. 

Creating an asset plan is a sustainable strategy for extending the lifecycle of assets and addressing issues to avoid unforeseen events. Here’s how you can leverage an asset management plan for effective asset use:

1. Efficient resource management 

Effective resource management can be best achieved by keeping in mind the asset needs of your business. An asset plan provides a framework of how, when, and in what capacity the current assets are being used, so the procurement team can acquire new ones in advance. This helps in handling budgets and forecasting asset-related expenses. 

The following table provides a breakdown of how a strategic asset management plan helps businesses manage and allocate resources well (including both inventory and assets) throughout their life: 

2. Improved response to emergencies 

Effective resource management and categorization are essential for simplifying work processes and implementing faster administrative workflows. Achieving these motives is heavily dependent on accurate records management, which is possible only when an effective asset management plan is in place.

A plan enables your team to cross-check your organization’s management objectives with current performance to establish a baseline for benchmarking. By outlining clear implementation steps in your plan, you can prepare your team to achieve asset management objectives faster and more effectively.

Well-planned implementation steps help improve response time to emergencies – for instance, sudden asset breakdown. In such a situation, you can count on your asset management plan and respond wisely and quickly by following a pre-established safety plan. So, be prepared beforehand to avoid mishaps with an asset management plan! 

3. Enhanced compliance management 

An asset management strategy enables your team to comply with safety standards. This includes maintaining an asset on time, following safety protocols while using an asset, and training the staff to use an asset well. A sound plan highlights how an asset is to be treated, and what its long-term utilization plan and objectives are. 

An asset’s maximum capacity can be achieved by creating a compliance checklist. Following a checklist as part of your asset plan helps achieve asset management compliance . This way you stay on top of rules and regulations that in turn increase the safety of assets (and their users), and help achieve the end-purpose of the assets. 

4. Reduced asset downtime

According to recent studies , equipment downtimes cost an estimated $50 billion annually. To ensure your organization does not suffer the consequences of downtimes, your plan can incorporate preventative maintenance, with regular audits to analyze assets’ condition and make timely arrangements to avoid downtimes. 

One way to implement proactive maintenance is by scheduling maintenance events in advance. This can be achieved by checking the assets’ availability calendar and choosing a day for maintenance when the asset is not being used for other tasks. This helps achieve consistency in service delivery and efficient operations by minimizing downtime. 

5 ways to implement an asset management plan 

A detailed asset plan soon translates into successful strategic asset management once implemented using the right steps. Successful implementation of an asset management plan is straightforward and requires following a few steps, including: 

Step 1: Set strategic objectives

To create a plan that aligns with your organizational goals, it is important to set SMART goals – specific, measurable, achievable, relevant and time-bound. These goals must align with your organization’s overall vision to maintain sustainability in the longer run.

SMART objectives direct major organizational operations towards higher efficiency, increased productivity and improved ROI. The objectives can include a variety of short term and long term goals, but need to be realistic with a specific timeline defined. These asset management goals help improve the overall asset monitoring processes and establish a benchmark for regular performance check. 

For example, for a construction company, achieving goals with the help of an asset management plan looks like this:

• Prolong asset lifecycle: Heavy construction equipment is costly and requires timely maintenance. Such assets can be scheduled for early maintenance sessions as per the asset maintenance plan to ensure that they are never out of date or under performing. To extend their lifespan, an organization would focus on preventive maintenance since repair after a failure can be more costly, slower, and increases the chances of unplanned downtime. To fulfill this aim, your team can employ tools that maintain maintenance logs and asset history. 
• Optimize asset utilization: Ensuring the construction assets are utilized fully and checked back in without exceeding the due date. Track assets regularly to assess the frequency of their usage and achieve optimal performance. 

In short, establishing clear objectives helps you expedite the formulation and implementation of an asset management plan. 

Step 2: Create an asset repository

Having a complete record of your assets is vital to managing them. If you do not know what asset you possess, then you will not be able to generate a plan that best helps in managing them. 

Defining your equipment procurement process is the way to go ahead. As a part of the process, it is wise to categorize and catalog equipment first. Through asset categorization, more useful and frequently used assets can be prioritized for regular monitoring – accelerating organizational efficiency. 

Next is creating an asset repository , so you always know what assets are being utilized by your business, what categories they belong to, and what their life cycles and values are. 

A cloud-based solution is useful in storing this information. You can consolidate critical information in one platform and cross-reference that data anytime for easy accessibility and transparency. You can also conduct physical audits at the end of the fiscal year and know the exact count and quality of your assets by simply checking the system. 

This also helps keep the asset lifecycle in check and allow fixed asset tracking . So, if an asset is near the age of retirement, the system will mark its age and send automatic alerts. Using the information, your operations managers can look for alternatives and continue operations without disruption. 

Step 3: Create an asset criticality assessment

For you to be able to continuously use assets, it is important to analyze the functions they regularly perform. Depending on the functions, you can determine their management maintenance, replacement and operational protocols. The nature of work also determines the use of an asset, which in turn directly impacts an asset’s overall functionality, such as the number of hours it is used. 

Let’s suppose you run an event management business and as a part of the package you provide photography services. In this case, you will require camera batteries with sufficient life to last a full event. So, you need to assess their quantity, and availability and arrange for backup batteries in advance. If you follow an asset management plan, you will know that you need to reserve the batteries and cameras in advance or check them out as a project to ensure top performance. 

Also, Levels of Service (LOS) need to be assessed to ensure that asset performance goals meet the target performance goals. LOS helps identify what service each asset is providing, and ensures reliable and quality asset performance. To maintain LOS, an asset management plan should include a continuous performance assessment plan. This includes measurements of performance to analyze asset safety and operations.

Step 4: Schedule maintenance

One of the foremost aims of asset management includes keeping the assets well-maintained. Assets need repairs from time to time; scheduling repairs helps avoid last-minute delays. Two types of maintenance activities are common to achieve this: reactive and proactive. 

For example, if you manage a school, then repairing a broken down PC in a computer lab – reactive maintenance – will cost more than carrying out regular checks – proactive maintenance – to check hardware performance and provide upkeep, as needed. A proactive maintenance strategy is ultimately more cost-effective over time because it prevents an asset from complete breakdowns, which are almost always more costly.

Step 5: Financial Planning

One of the long-term aims of an organization is to achieve financial security. A successful asset management plan involves financial planning i.e., managing your budgets and allocating funds for efficient resource management. A detailed financial plan highlights your asset portfolio and requires documenting data including:

• Asset’s net value
• Annual depreciation expense
• Maintenance and repair costs
• Asset’s operational cost
• Replacement cost

This information helps your team cost-effectively manage assets while operating within the budget available to fulfill each department’s asset needs. 

Financial planning facilitates preparing for a large expenditure, such as acquiring a new asset, or even upgrades to an existing asset to maintain it according to your organization’s defined standards. You can use your asset management plan to conduct solid financial planning and implement suitable asset management principles . 

Effective asset management planning for improved operations

Planning is the first step of every task! Without a comprehensive plan, chances are that you will remain unguided about the next steps and not have anything to count on during emergencies. An asset management plan is a fairly simple yet significant way to streamline operations and avoid asset loss or misuse.

Having an asset management system makes the implementation of an asset plan easy as it enables organizations to not only track assets but perform various actions like checking them in, checking them out, reserving and maintaining them. You can stay at the top of your asset management game by strategizing, planning, analyzing, and planning. 

Was this helpful?

Frequently asked questions, how to devise an asset management plan.

You can draft your business-specific asset management plan by assessing your business needs, identifying critical assets, making an asset repository, conducting gap analysis, and analyzing its possible implementation.

What do you mean by the term 'asset management strategy'?

An asset management strategy provides a comprehensive framework for outlining how an asset is to be used effectively to achieve enhanced productivity. It helps maximize assets’ value and longevity and achieve high utilization.

Why is developing good asset control important?

Having control over your assets is a significant step toward ensuring that your assets are serving the desired objectives, and helping your organization establish standards of service.

Explore More Articles

[How-to] Reserve Items in EZOfficeInventory

What are Fixed Assets and How Can They Be Managed Throughout Their Lifecycle?

What is Enterprise Asset Management? Features, Benefits, and Use Cases 

Achieve higher asset control with ezofficeinventory.

Connect with us

Sales and support

[email protected]

+1-888-623-8654 +44 808 175 5789

• Press Releases
• Terms of Service
• Privacy Policy

Copyright © EZO. All rights reserved.

Personalized Demo For You

Please share your details below & let our Product Specialist get back to you

Need help getting started or have questions? Get in touch with one of our product specialists!

• +61 1300 402 602
• [email protected]

How to Implement an Asset Management Plan

• November 19, 2021

An asset management plan (AMP) entails documented information detailing a tactical strategy for an effective asset management system. The most recent version of ISO 55000 (2014) family of standards for asset management provides a clear roadmap for asset management, its principles, and importance. Typically, asset management plans provide a guideline for obtaining value from tangible assets by optimising performance, risk, and cost across the entire asset lifecycle.

An AMP will involve more than one asset and usually deploys a systematic approach. This is particularly possible where the assets are interdependent and are expected to work together to deliver an intended service.

The AMP implementation process isn’t complicated as long as you hire the right team. At Best Practice, we can help implement an effective asset management system to help manage your organisation’s infrastructure. Below is a step by step guide on how to implement a quality asset management plan.

4 Steps of Implementing an Asset Management Plan

Asset management plans specify three significant aspects required in an asset system to attain the company’s asset management goals and objectives. These include activities, resources and timescales. According to ISO 55001 , an AMP should cover the following four stages:

1. Planning

The first essential step is to plan the asset life cycle, which involves establishing and verifying assets’ requirements. This is often based on the assessment of the current assets and their ability to meet service delivery expectations. Moreover, identification of management procedures is required to help analyse the asset needs. While planning, you should ensure that the ongoing changes add value to the organisation.

2. Procurement

Once you define the cost and other requirements of an asset, the next step is procurement planning. This phase covers every activity involved in acquiring a new asset to optimise procurement costs. Typically, procurement planning consists of designing and purchasing assets that can offer the highest level of service delivery. You can choose to build or buy the asset based on your ability. Then, create a realistic budget for the asset procurement and estimate the time frame for the acquisition.

3. Operation and Maintenances

The operation and maintenance phase defines how you will use and take care of the asset with the ultimate goal of delivering reliable services. An organisation needs to develop an asset management strategy and evaluate the preventive maintenance of all assets.

Furthermore, the asset management plan should focus on common maintenance problems. So, throughout the ongoing application, the asset should be subjected to appropriate monitoring and maintenance to ensure it meets operational requirements.

4. Disposal

Once an asset reaches the end of its productive life, it is considered an underperforming asset, which means it can be treated as a surplus or otherwise disposed of. However, the disposal process should be conducted according to the service deliverables. Before disposing of an asset, you should perform a thorough check to ensure it does not harm anyone or negatively affect the environment.

Need Help Creating and Implementing an Effective Asset Management Plan? Contact us Now

If you’re planning to create an asset management plan but are unsure how to navigate the process, professionals from Best Practice Biz can help you. Get in touch with us online or call us at 1300 402 602 to see how we can help improve your business.

Subscribe to our Newsletter

Bpc_newsletter_form, share this post with your network, more to discover.

Best Business Resolutions To Help Your Company Grow

What is the difference between QMS & EMS

What Is The Cost Of Data Breaches

Copyright 2023 © Best Practice Certification Pty Ltd

Get started, our services.

• Online Training
• Recruitment
• ISO Certification

Contact & Policies

• Privacy Policy
• Legal Information

Discover more from Best Practice

Subscribe now to keep reading and get access to the full archive.

Type your email…

Continue reading

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

• AI ASSISTANTS

Upmetrics AI Your go-to AI-powered business assistant

AI Writing Assist Write, translate, and refine your text with AI

AI Financial Assist Automated forecasts and AI recommendations

• TOP FEATURES

AI Business Plan Generator Create business plans faster with AI

Financial Forecasting Make accurate financial forecasts faster

Strategic Planning Develop actionable strategic plans on-the-go

AI Pitch Deck Generator Use AI to generate your investor deck

See how it works  →

AI-powered business planning software

Very useful business plan software connected to AI. Saved a lot of time, money and energy. Their team is highly skilled and always here to help.

- Julien López

• BY USE CASE

Starting & Launching a Business Plan your business for launch and success

Validate Your Business Idea Discover the potential of your business idea

Secure Funding, Loans, Grants Create plans that get you funded

Business Consultant & Advisors Plan seamlessly with your team members and clients

Business Schools & Educators Simplify business plan education for students

Students & Learners Your e-tutor for business planning

• Sample Plans
• WHY UPMETRICS?

Reviews See why customers love Upmetrics

Customer Success Stories Read our customer success stories

Blogs Latest business planning tips and strategies

Strategic Planning Templates Ready-to-use strategic plan templates

Business Plan Course A step-by-step business planning course

Ebooks & Guides A free resource hub on business planning

Business Tools Free business tools to help you grow

• Sample Business Plans

Investment Company Business Plan

The possibility for substantial financial gains is one of the main advantages of an investment company. As the company expands and gains customers, it has the potential to generate large fees and commissions based on investment portfolios.

Are you looking for the same rewards? Then go on with planning everything first.

Need help writing a business plan for your investment company? You’re at the right place. Our investment company business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write An Investment Company Business Plan?

Writing an investment company business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products and services:.

Highlight the investment company services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of investment company you run and the name of it. You may specialize in one of the following investment businesses:

• Mutual fund companies
• Venture capital funds
• Private equity funds
• Asset management companies
• Pension fund managers
• Describe the legal structure of your investment company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established investment company, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your investment company business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your services:

Mention the investment company services your business will offer. This list may include services like,

• Portfolio management
• Financial planning
• Investment research and analysis
• Wealth management
• Mutual funds and exchange-traded funds

Investment advisory services:

Additional services:.

In short, this section of your investment business plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your investment company business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your investment business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & software:.

Include the list of equipment and software required for investment business, such as servers & data storage, network equipment, trading platforms, customer relationship management software, portfolio management software, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your investment business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your investment company, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your investment firm business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample investment company business plan will provide an idea for writing a successful investment company plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our investment company business plan pdf .

Related Posts

Bookkeeping Business Plan

Concierge Services Business Plan

How to make Perfect Business Outline

Simple Business Plan Template Example

What are Business Plan Components

How to Write Business Plan Appendix

Frequently asked questions, why do you need an investment company business plan.

A business plan is an essential tool for anyone looking to start or run a successful investment business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your investment company.

How to get funding for your investment company?

There are several ways to get funding for your investment company, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your investment company?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your investment company business plan and outline your vision as you have in your mind.

What is the easiest way to write your investment company business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any investment company business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Popular Templates

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

• [email protected]
• Call (866) 670-7483

• Equipment Financing
• Posted on December 31, 2022
• Kortney Murray

The first step in asset planning is, of course, to create the plan . An asset management plan will serve as a road map for you and your company to carry out your asset management strategy.  Not sure how to get started?

In this article, we will lay out five essential steps to building an asset management plan for your organization. 

What is an Asset Management Plan (AMP)?

But first, what exactly is an asset management plan (AMP)? An AMP is an organizational plan that defines the actions that will be taken to develop, operate, maintain, upgrade, and dispose of company assets. It will also define what resources will be applied to carry out these objectives.

All of this will be done most cost-effectively through the analysis of all the costs, risks, and performance attributes associated with the assets.  An AMP can be created for an individual asset, a portfolio of assets, a group of assets, or a class of assets.

It should keep in mind all timelines of each asset to extract as much value from each.  In simple terms, with an AMP, you will summarize the goals of each asset’s life cycle, then break down weekly, monthly, and yearly tasks to help achieve those goals.

So why should you create an AMP? Well, not only does it act as a guide for important decision-making processes, but you will also find there are many benefits to your business. 

Benefits of Asset Management

Here are some of the most common benefits companies will experience when undergoing asset management processes: 

• Reduction of customer complaints
• Increases customer value
• Improves efficiency
• Helps create a budget for the future
• Ensures compliance with regulations and industry standards
• Assets are well-maintained
• Reduces loss
• Prevents theft

Sounds good? Great! But what if you don’t have the organizational skills to come up with an AMP? You can consult an asset management firm to help you. These experts can provide you with more information to help organize and manage your assets. 

But if you are ready to dive in yourself, check out the following 5 steps to building an asset management plan for your business. 

1. Come Up With A Strategy

If your organization does not already have one in place, you will first want to come up with an asset management strategy. To do so, you will need to:

• Assess stakeholder needs: Identify and prioritize the people who will be affected by your AMP. Then do a stakeholder analysis to assess how stakeholder interests should be addressed in your plan. 
• Do a SWOT analysis/risk assessment: Analyze SWOT (strengths, weaknesses, opportunities, and threats) in your organization. This will help you identify and analyze the factors that can shape current and future operations. 

After these assessments, you can go about creating the following:

• Policy and Objectives: These should outline how your company will value, support, use, and implement asset management activities. Make sure the owner/most senior staff member signs off on this document!
• Strategic Asset Management Plan (SAMP): This organizational strategy document will highlight the objectives you want to achieve in your asset management strategy . Outline the tactics your organization will take to convert organizational objectives into asset management objectives. In the SAMP, focus on identifying your assets, defining stakeholders’ needs, and connecting these things to other plans or standards. 

2. Analyze and Record Current Assets

As you are completing your SAMP, you will also want to do a complete asset inventory of your current assets. This will bring an awareness of what exactly you’ll be managing. Your asset inventory should include the following information:

• Asset description
• Asset location
• Current asset value
• Purchase date
• Estimated useful life

Complete an asset register recording all your current assets. The asset register should outline how and what asset data should be collected throughout its lifecycle.  It is most helpful to input the register into an Enterprise Asset Management (EAM) system, or a Computerized Maintenance Management System (CMMS).

Having asset management software to keep track of your assets will save lots of time, keep you organized, and prevent errors from occurring.  As you record your assets, make sure to assess the condition of each item and how critical they are in implementing the company’s needs.

Having a grasp on the current state of your assets will allow you to schedule maintenance as needed. It can also help you specify how much you want to invest in each asset for the needs of your organization.  For instance, ask yourself how long you will allow the depreciation of your equipment until you renew or replace it.

If possible, circle back on an annual basis to best optimize each critical asset’s maintenance plan. This will help ensure the asset is getting the exact care and maintenance it needs to reach organizational objectives. And you’ll save some money in the long run. 

It is also helpful to be aware of how important each asset is. What would happen if it failed to perform its function? If it would upset the workflow of the whole business, you will need to prioritize it above other less important assets. 

3. Calculate Asset Costs

To figure out an asset’s value, not only will you need the asset’s purchase price, but you will also need to assess other asset life-cycle costs. This is a part of lifecycle management. Getting as accurate as possible with your asset costs will directly relate to an effective and efficient AMP. 

To calculate total asset costs, you will need to know things like:

• Maintenance costs
• If the asset is a capital asset or an expense
• Condition and performance modeling
• Disposal costs

From there, you can determine the cost, quality, quantity, efficiency, reliability, function, capacity, and safety of the services you will provide your assets. It is important that your AMP is able to match the level of service that assets provide to the customers’ expectations. You will need to find the balance between the cost to deliver the asset and the level required.

Think about the following: 

• How do the business’s goals impact the asset’s service levels?
• How do regulatory requirements impact service levels?
• What level of service is the asset currently getting?
• Does the service level meet the needs and expectations of the asset’s users?
• If that level of service could change, how, and if there is enough funding for it?
• How much does it cost to service the asset annually?

Once you’ve determined the levels of service you want to achieve, use a lifecycle modeling tool to help you come up with a financial plan for maintenance, renewal, or replacement for each asset.  Factor in any forecasted growth.

Is the demand for the assets expected to increase or decrease? What investments will you need in the future to reach the expected demand? Also, prepare for any possible contingencies.  With all of this information, create a five-year plan, a 10-year plan, or even a 20-year plan.

Include the following: 

• Background information: Include the asset’s age, size, capacity, condition, performance, current value, and previous management summaries. 
• Risk management plan: List any possible risks that can affect the service delivered by the asset. Do the risks threaten any of the business’s objectives? How will the risk be identified and evaluated? What measures will be taken to mitigate those risks?
• Operating plan: Define the strategies to maintain the required service levels, determine which operational tasks will be a priority, and summarize any possible future costs of operation. 
• Asset maintenance plans: Define the maintenance strategies necessary to maintain the required service levels, determine which maintenance tasks are a priority, and summarize any possible future costs of planned maintenance. Include any expenditures that will be for the restoration, replacement, or renewal of an existing to be restored to its original capacity. 
• Capital planning: Name any possible new investments that will create a new asset or upgrade or improve an existing one to a higher potential. If you need help with this section, you may want to consult an investment advisory service with registered investment advisors on staff.
• Disposal plan: Figure out in which ways you will want to dispose of an asset that has reached the end of its useful life. Will it be sold, demolished, or relocated? Consider when you will be disposing of these assets and how much it will cost to dispose of them. 

Make sure to keep this data up-to-date by reviewing and updating it quarterly. Then track any changes that have occurred every year. 

4. Implement Proactive Asset Management

Using the data collected from the previous steps, come up with an asset management plan that is the most cost-effective and proactive. Plan when to do preventative maintenance or repairs for each critical asset. Also, plan when to dispose of and replace the asset after its estimated life cycle is over.

Having a plan in place will inevitably increase asset performance long term. The Annual Works Plan will give you a short-term plan for those assets that need preventative maintenance. Make sure that you are following the guidelines of the manufacturer to ensure you follow the timeline of expected repairs.

There may also be some statutory requirements for the asset that you must follow.  You can, however, modify the expected plans in case it benefits your business in some way.  Once your Annual Works Plan is completed, you can establish work orders to carry out the scheduled maintenance.

This can be done on a daily or weekly basis, or as needed. It will be helpful to have some kind of planner or scheduler or staff member to keep up with these work orders.  After implementing your plan, take a step back to see if it is helping you achieve the outcomes you were looking for from your AMP.

Look closely to see if the plan helped shaved off any extra costs or avoided any risk. Are you getting the most efficiency and effectiveness possible out of your resources? It can help if you can establish a good working relationship with your contractor and procurement teams.

Ensure you are getting the best resources for each maintenance job. Be communicative about the work being done to improve the chances of it being done most effectively and efficiently.  To increase the ability of workers and staff to plan, assign, and carry out maintenance, use a mobile work order application .

If all members have the same application, this will be a far less hassle than sourcing data from completed jobs, then manually entering them into your current system. 

5. Make A Long-term Financial Plan

Having your asset management systems in place will help you plan your business’s finances long-term. With all the information accurate and organized, now is the time to look further down the line.

With a long-term financial plan, you will be able to speculate whether your current asset management objectives are feasible. Then you can make adjustments as needed. 

In your long-term financial plan: 

• Include and summarize all the financial requirements to manage assets
• Include cash flow forecasts for the next one to five years
• Provide in detail how assets should be treated in the long-term scenario (as capital or expense)
• Determine the best funding strategies and when to implement them 

If necessary, contact a financial advisor to help determine when and if you may need additional funding. They can also help you tweak your plan to have a more accessible financial flow. Need more financing ? Here at Coastal Kapital, we can help.

Road Map to Success

Asset planning may sound complicated. But if you break down the five steps we’ve laid out, you will find that once you’ve got a process in place, your company will turn into a well-oiled machine. Having a strategy will allow a unified vision for your staff to work from.

Then defining your assets in detail, calculating their life-cycle costs, and planning proactive management will ensure each asset is getting the level of care to perform at its best. And finally, completing the long-term financial plan will give you an idea of any roadblocks you may encounter along the way, allowing a clear road map to success (and profit !). 

Nice to meet you.

Enter your email to receive our weekly  G2 Tea newsletter  with the hottest marketing news, trends, and expert opinions.

What Is Asset Management? Why It's Necessary for Business Success

June 24, 2021

by Keerthi Rangan

In this post

What is asset management, why is asset management important, what is an asset manager, what is asset management software, what is the asset lifecycle, types of asset management, challenges of asset management, benefits of asset management.

Assets are invaluable in all walks of life.

Assets are especially essential parts of the business equation. Although the concept of an asset is broad, it refers to anything that can be controlled and used to either store or produce more value. These include the physical and intangible assets that your company owns.

Tangible assets are physical items such as machines, tools, real estate, vehicles, and more. In addition, intangible assets include intellectual property (IP), databases, operational data,   software license  agreements, and organizational capital. These assets have a finite value.

The idea of spending time and money on protecting assets that don't generate any revenue may seem like an inefficient use of resources. But as soon as a business grows and scales, the importance of asset management increases proportionally, and ignoring your company's assets can turn into a financial nightmare.

When properly managed, assets can contribute to your company’s growth, financial success, and encourage sustainability. However, poor management practices can hurt your bottom line and potentially hinder or even destroy growth opportunities.

Asset management ensures that your company can continue to grow and expand with the correct use of assets. It will help keep your business on track, manage risk, and more.

Asset management is a systematic process to cost-effectively procure, maintain, upgrade, and dispose of organizational assets. As a result, it enhances asset delivery potential and lowers costs.

The concept of asset management isn’t new or revolutionary, but it has powerful and important applications for businesses. When executed correctly, asset management solves the most pressing concerns plaguing an organization, allowing it to grow more efficiently.

Asset management is a key part of an effective business management strategy. Unfortunately, it's often overlooked as a mundane task that's not very exciting. However, this perception is wrong. Asset management is a critical component of any profitable business, and it provides value to both the organization and its shareholders.

Asset management involves people from all business areas and divisions, from COOs and managers to auditors and engineers, and even IT specialists and equipment operators.

Businesses that invest in asset management reap various benefits. Not all of these benefits are linked to financial gains. Real-time asset tracking produces a constant stream of data, fosters responsibility, and keeps planning and equipment maintenance on track with the help of a suitable asset management system.

Tracking different asset classes (such as fixed assets) with the help of an with the help of   asset tracking software  eliminates some of the drawbacks of older monitoring systems, such as depending on erroneous data and having no means of knowing where assets are or how they function. In addition, asset management provides businesses a 360-degree view of the entire life cycle of the assets.

Asset management software also automatically save time and resources. Furthermore, enhanced scheduling and automated warnings reduce capital expenditures and save money on maintenance. Thus, total operational expenses decrease while planning efficiency improves.

Such a system facilitates the adoption of a risk management strategy and enhances regulatory compliance. In addition, the accuracy of depreciation rates and asset valuation is also improved.

An asset manager is someone who manages a specific group of assets. The asset manager’s goal is simple: to save money through tracking assets and bring more organization to reduce waste. An asset manager is responsible for developing and executing an asset management strategy, ultimately managing the assets entrusted to them.

Traditionally, businesses have outsourced asset management to asset management companies who act as fiduciaries. However, there has been a slow and steady shift toward in-house asset management with the help of asset managers.

Asset managers employ researchers and analysts responsible for tracking asset performance, providing sound investment advice, and taking care of other tasks that could affect the performance of the assets. In particular, asset managers look for high-growth investment opportunities before anyone else.

Asset managers should know various departments: administration, finance, capital, operations, and have a thorough understanding of a business’ stakeholders and strategic and operational procedures.

Asset management software is a tool that helps businesses make their revenue-generating assets more usable. Particularly those assets crucial to the daily operations of any business.

Asset management software gives a comprehensive perspective of an asset's lifespan, from acquisition to deployment to maintenance and disposal. While an organization might track its assets with a basic spreadsheet, asset management tools allow users to evaluate data relevant to each asset, helping them to make more informed decisions about asset management.

Asset management systems accomplish this by guiding users to keep track of assets, analyze maintenance fees, and extend an asset's useful lifespan. Asset management systems record every detail of an asset and are highly beneficial to an organization. In addition to tracking assets, they may also perform additional services such as:

• Decrease the expenses related to procurement, compliance, and maintenance of assets
• Improve the visibility of all assets
• Maximize the usable life of assets
• Enhance and guarantee compliance

An ideal asset management system will give users the resources they need to manage their complete asset inventory in a single, centralized dashboard. Asset managers can see where the assets are housed, who’s utilizing them, and how.

The number of phases that a business' asset goes through during its operating life cycle is known as the asset lifecycle . It’s a strategic and analytical process during which a company can successfully and productively use an asset to achieve its business objectives.

An asset life cycle is divided into numerous stages and generally encompasses all phases of an asset's life (from acquisition to maintenance and disposal). Thus, each asset has a life cycle that may be broken down into four distinct stages:

1. Planning

The initial stage of the asset life cycle is planning. The asset needs are established and verified at this level. Determining asset requirements depends on a review of current assets and their ability to satisfy customer service demands.

Based on the business and industry standards, the requirements may be combined to produce a hybrid asset precisely suited to an organization's needs. Unfortunately, it’s also the stage where many errors can occur.

If something is set up incorrectly or a computation error is made, it can impact all subsequent phases until the asset is renewed or disposed of, which can take years.

When an organization implements excellent planning at all stages of the asset management cycle, it can:

• Identify over-performing assets and under-performing assets
• Determine if existing assets are sufficient for business needs
• Ensure that assets are well-maintained and accountable
• Discover asset information for in-house assets
• Ensure that assets are accessible when they are needed
• Analyze different asset choices based on financial planning

2. Acquisition

A business can choose the best asset only after it identifies the cost and needs of all the available options. Acquisition planning encompasses all of the processes involved in purchasing an asset to achieve a cost-effective acquisition. This includes tasks such as asset design and procurement. The proper execution of these tasks ensures that the asset is fit to use.

An organization must first determine if the asset will be purchased or built in-house. The next step is to create a budget for asset acquisition and a timeline for purchase. Finally, a realistic budget and cash flow should be designated as deficit funds; otherwise, project management may jeopardize the asset purchase process.

When the above criteria are satisfied, a project team should oversee the process to ensure that all acquisition process tasks are performed to achieve corporate service delivery and other asset investment objectives.

3. Operation and maintenance

The operation and maintenance stage is perhaps the longest stage in asset lifecycle management. It describes how an asset is used and managed, including maintenance, to provide continuous services. Therefore, asset managers should prioritize asset maintenance concerns in their asset management strategy.

For example, long-lived physical assets such as roads and buildings, need specific upkeep throughout their lifespan. Similarly, financial services such as portfolio management need regular upgrades for a positive outcome. Thus, the primary goal of this stage is to maximize asset utilization.

During this period, you should focus on a specific asset for proper maintenance, monitoring, and potential enhancement to avoid operational changes. Upgrades, patch repairs, new license purchases, compliance audits, and cost-benefit assessments are all parts of operation and maintenance.

4. Disposal

When an asset approaches the end of its useful lifespan, it can be regarded as a surplus or an underperforming asset. The renewal or disposal of an asset is the final stage of its lifespan. If an asset is to be disposed of, teams should carefully change the maintenance plan to ensure that mandatory maintenance is performed.

All assets will generate enough data to help firms choose the optimal course of action. However, this information is rarely gathered in a fashion that can help executives or managers make the right decisions. Therefore,  an organization should be aware of these essential steps well in advance of the renewal or disposal stages to use the data appropriately.

It's crucial to have a thorough awareness of all essential assets in your workplace. Especially those necessary for wealth management and creation.

For example, a gelato shop owner would collect information on managing their most valuable asset: the refrigerator. An IT asset manager, on the other hand, would keep track of their company's software license compliance to avoid penalties and breaches.

Understanding the different forms of asset management is crucial in selecting a solution that’ll work for you. Here are a few different types of asset management based on their industry sector.

Financial asset management

Financial asset management , often referred to as investment management, is the financial services sector that manages investment funds and segregated customer accounts. While there are other types of asset management based on industry sectors, the term asset management is most commonly used in the financial services industry.

Accounting software   helps corporations, governments, and individuals deal with asset management efficiently and adequately. Financial asset management employs specialists to manage funds and customer investments. 

Financial asset management can be performed in two ways: actively or passively .

• Active financial asset management: This type of asset management requires active responsibilities ranging from examining customer assets to planning and managing investments. All of this is handled by specialists (such as hedge fund managers or financial advisors), and suggestions are made based on each customer's financial health and risk appetite. As a result, investors pay a higher premium for active asset management since it’s more labor-intensive.
• Passive financial asset management: Assets are allocated to replicate a market or sector index in passive asset management. Passive asset management is far less time-consuming than active asset management. It’s also less customized, needs less maintenance, and is more cost-effective for investors.

There are three primary financial asset management services users-  corporations, high-net-worth individuals (HNWI), and financial intermediaries. Each group is interested in asset management for the same reason: to make a significant amount of money by using the money available to invest.

As a result, asset management companies typically charge minimum annual fees (some in the range of $5,000 to $10,000; a select few in the range of $100,000 to $1 million) to weed out smaller investors who may end up costing them in trading and transaction fees.

But recently, asset management companies have created pooled asset structures like mutual funds, index funds, and exchange-traded funds (ETFs) . These are designed for set-it-and-forget-it investors with fewer assets (at least when compared to the wealth these companies typically deal with).

Enterprise asset management

Enterprise asset management (EAM) is a set of processes to control and measure asset performance to extend the useful life of an asset. It's a solution that helps asset-heavy companies focus on asset management, upkeep, condition and efficiency, from its acquisition to its disposal.

EAM software   assists the management of an organization's assets. Sometimes an asset registry and a computerized maintenance management system (CMMS) are often included in an EAM system. In addition, geographically spread, interlinked, or networked assets are frequently represented using geographic information systems (GIS) . The use of a GIS-centric asset registry improves data integrity and interoperability, allowing users to reuse, synchronize, and exchange information more efficiently and effectively.

Some of the features of an EAM system are:

• Asset reporting and analytics
• Management of asset purchase and procurement
• Supply chain and MRO management
• Asset tracking and management
• Maintenance planning and scheduling
• Management of labor and inventory

Top 5 EAM software providers:

• Maintenance Connection
• Fracttal Asset Cloud

*These are the five leading EAM software providers from G2’s Spring 2021 Grid® Report.

Infrastructure asset management

Infrastructure asset management is a broad approach to maintaining physical assets such as water treatment plants, sewer lines, roads, bridges, and transportation. Large corporations like construction corporations and government agencies often use infrastructure asset management to manage important physical assets. The process usually focuses on the final stages of a facility's life cycle, such as maintenance, rehabilitation, and replacement.

Even if a company's infrastructure assets are tangible , these assets still need to be closely monitored, tracked, and managed using the right infrastructure asset management software. This ensures proper preventative maintenance and helps collect critical analytical data that businesses can utilize to make data-driven decisions.

IT Asset Management

IT asset management (ITAM) is a collection of business processes for integrating IT assets across the organization. It combines financial, inventory, contractual, and risk management duties to manage the entire lifecycle of IT assets such as software and hardware.

ITAM software   provides granular visibility for all IT assets by offering an in-depth perspective of a business' IT environment. This becomes critical when defining and controlling a company’s IT infrastructure from the ground up.

ITAM software allows businesses to create an IT asset registry that manages assets such as:

• Software applications
• Cloud applications
• Desktops and workstations
• Servers and routers
• Smartphones, mobile phones, and tablets

ITAM tools provide precise information about the assets affected by a disaster or change. This helps teams with IT service management (ITSM) activities. ITAM systems also reduce unnecessary IT expenditures by maximizing asset use and limiting IT asset acquisitions.

Top 5 ITAM software providers:

• SolarWinds Service Desk
• BMC Helix Discovery
• LogMeIn Central

*These are the five leading ITAM software providers from G2’s Spring 2021 Grid® Report.

Digital asset management

Digital asset management (DAM) is a continuously growing sector that helps businesses manage their digital assets (digital media and content) in a logical, organized, and accessible way.

DAM software provides a cost-effective method to control access to digital assets. The goal of a DAM system is to provide structure to the workflow and lifecycle of a business’ digital assets, including videos, images, audio files, design files, and presentations. Thus, it is often used as a brand management tool to ensure that internal teams are adhering to brand guidelines and maintaining brand consistency.

It also provides several security and efficiency benefits. Using  digital asset management workflow , businesses can control access to their digital assets, providing varying levels of access to content based on predetermined but fluctuating roles. DAMs also boost efficiency by reducing the costs associated with locating or recreating assets. These systems allow for secure storage and organization of media files, as well as keeping track of asset versioning.

Some of the features of a DAM system are:

• Storage and organization of different file types
• Access management for all files
• Metadata assignment for all files
• Version control to keep track of incrementally changing versions of the same asset

Top 5 DAM software providers:

• Widen Collective
• Brandfolder
• PhotoShelter for Brands

*These are the five leading DAM software providers from G2’s Spring 2021 Grid® Report.

Software asset management

Software asset management (SAM)   is a set of business practices used to manage the purchase and use of software. Unlike ITAM, SAM is responsible for software usage by tracking cost, deployment, software licenses, and license compliance for all end-users involved.

SAM software   manages only software assets and not the management of IT hardware such as workstations and servers.

SAM software help businesses:

• Maintain compliance and prevent unanticipated software compliance expenses
• Manage SaaS and software licenses
• Track and monitor software spend through a single point

Top 5 SAM software providers:

• FlexNet Manager
• Microsoft Volume Licensing
• Snow Software
• Alloy Navigator

*These are the five leading SAM software providers from G2’s Spring 2021 Grid® Report.

Asset management is a valuable and important aspect of any modern business process. Asset management ensures that all assets are properly procured, operated, and managed according to industry standards and specifications.

It’s crucial to ensure that asset management is well organized at every phase of a project from conception to completion. Executives responsible for managing, safeguarding, tracking, or simply monitoring assets encounter a number of challenges.

• Selecting the appropriate assets: Most business executives aren’t aware of their organizational infrastructure. Deciding what assets to procure becomes more complex in such scenarios. Asset procurement teams wind up spending money on new assets without fully understanding their need. You can only make educated judgments about purchasing new equipment and software if you know what assets you have, who else has it, what's in use, and how old or expired existing assets are.
• Procurement of uncontrolled assets: A conventional procurement-focused asset strategy is often responsible for introducing more uncontrolled assets into the organization. In IT, such assets are termed shadow assets, which are implemented within a company without the authority of the IT department. This can introduce uncontrolled assets into the company, increasing expenses and security and compliance issues.
• Cross-functional assets: Managing assets across all business units is a major challenge for efficient operations. This is because business units want to use assets to make sense to their business, and generally disregard other units’ needs. The problem is that assets are often borrowed or shared by multiple business units, thus increasing the risk of business interruption when an asset is needed by more than one unit but is currently being used by another.

Assets are important. They are valuable resources that a company needs to run smoothly. Asset management guarantees that the right people have access to assets at all times and that no unnecessary damage occurs.

When you choose asset management, you're choosing to make your assets work harder for you. There are several benefits of using asset management to assure cost-effective procedures and maximum return on investment (ROI) for all of your organizational assets.

• Increased efficiency of all organizational operations: Once an asset management system is implemented, businesses can begin to comprehend the purpose of each asset. This covers their capabilities, management, and disposal to reduce expenses.
• All information in one place: Most asset management software include comprehensive reporting features. This helps businesses get whatever information they want from a single dashboard. Ad-hoc reports tailored to specific needs and basic reporting are easily accessed or promptly prepared and always up-to-date.
• Improved asset reliability: Asset management and tracking enhance the trustworthiness of assets. This allows asset managers to monitor maintenance cycles, analyze expenses, and review asset availability.
• Reduced maintenance cost: When an automated asset management system is in place, organizations often discover that the high maintenance price decreases.  A solid preventive maintenance strategy is required for critical assets. Pesky ghost assets usually lost in the spreadsheet registry can be easily found and managed with an asset management strategy.

Keep calm and manage your assets

Asset management is a critical component of an organization's success. All businesses need to identify and analyze the various asset classes that make up their business. While executives can do this on a global and aggregate level, using specialized software is the most efficient way to ensure that the asset management process is done effectively.

Software designed for asset management can provide the organization with valuable insight into the assets with the potential to generate the greatest return on investment. In addition, businesses can use asset management software to make asset-class level allocations to ensure that the highest possible return is achieved from each asset class.

Are you juggling multiple IT projects? Learn how  IT portfolio management  can help you streamline all your IT initiatives and reduce the cost involved.

Track and manage SaaS spend management

With G2 Track's free forever plan

Keerthi Rangan is an SEO specialist and a former content marketing specialist at G2 focused on the IT management software market. Her content helps organizations understand the different IT concepts and corresponding software available to transform their businesses, data, and people. Keerthi leverages her background in Python development to build subject matter expertise in the software and IT management space. Her coverage areas include: network automation, software-defined networking (SDN), blockchain, databases, asset management, disaster recovery, intent-based networks, infrastructure as code (IaC), SaaS, and more.

Recommended Articles

How to Manage Your Digital Assets With DAM Platforms

Most businesses produce vast amounts of content, but many are not managing it well.

by Nahla Davies

12 Best Examples of Gamification Across Business Spheres

Re-inventing customer experience with games.

by Lauren Fram

What Is Kubernetes Architecture? Importance + Best Practices

Kubernetes has experienced tremendous growth in its adoption since 2014. Inspired by Google's...

by Samudyata Bhat

Never miss a post.

Subscribe to keep your fingers on the tech pulse.

By submitting this form, you are agreeing to receive marketing communications from G2.

All Formats

12+ Asset Management Plan Templates – PDF, Word

Every business has its own set of assets. Holding assets is a part of any enterprise in the public or private sector. It’s important that business owners know what theirs are as they need to know the best ways in which they can use them. You can also like management plans in PDF . In order for them to do that, they’ll also need to come up with a simple plan that will allow them to make full use of whatever business assets they happen to have. And that’s why this article is going to teach you how to come up with an asset maintenance plan template.

Simple Asset Management Plan Creative Template

• Google Docs

Printable Asset Management Design Plan

Corporate Asset Management Plan Template

Asset Management Maintenance Plan Template

• Apple Pages

Software Asset Management Implementation Plan

IT Service Asset and Configuration Management Plan

Standard Asset Management Plan Template

Sample Asset Management Plan

Strategic Asset Management Plan

Simple School Asset Facility Management Plan

How to Create Your Business’s Asset Management Plan

1. take note of the necessary acquisitions, 2. plan for asset operations, 3. come up with a plan for maintaining these assets, corporate oraganzational asset equipment management plan.

Real Estate Property Asset Management Strategy Plan

4. Plan Out the Disposal of Old Assets

5. include information in regards to funding, 6. manage all of the different risks towards your assets, more in business, inventory management sheet template, inventory management template, retail inventory management template, business ledger template, accounting ledger template, general ledger template, student loan calculator, student budget calculator, student loan repayment calculator template, receipt sample.

• What is a Template?
• How to Create a Sales Plan + Templates
• 28+ Blank Check Template – DOC, PSD, PDF & Vector Formats
• 39+ Free Obituary Templates in MS Word | PDF | Apple Pages | Google Docs
• 41+ Christmas Brochures Templates – PSD, Word, Publisher, Apple Pages
• 23+ Christmas Brochure Templates
• 11+ Scholarship Profile Templates in DOC | PDF
• 4+ Hospitality Induction Templates in DOC | PDF
• 7+ Financial Plan Templates
• 10+ Operational Plan Templates
• 11+ Student SWOT Analysis Templates – PDF
• 9+ Training Plan Templates
• 7+ Production Evaluation Templates
• 5+ Shooting Schedule Template
• 5+ Budget Planner Templates

File Formats

Word templates, google docs templates, excel templates, powerpoint templates, google sheets templates, google slides templates, pdf templates, publisher templates, psd templates, indesign templates, illustrator templates, pages templates, keynote templates, numbers templates, outlook templates.

Need a business plan? Call now:

Talk to our experts:

• Business Plan for Investors
• Bank/SBA Business Plan
• Operational/Strategic Planning
• L1 Visa Business Plan
• E1 Treaty Trader Visa Business Plan
• E2 Treaty Investor Visa Business Plan
• EB1 Business Plan
• EB2 Visa Business Plan

EB5 Business Plan

• Innovator Founder Visa Business Plan
• UK Start-Up Visa Business Plan
• UK Expansion Worker Visa Business Plan
• Manitoba MPNP Visa Business Plan
• Start-Up Visa Business Plan
• Nova Scotia NSNP Visa Business Plan
• British Columbia BC PNP Visa Business Plan
• Self-Employed Visa Business Plan
• OINP Entrepreneur Stream Business Plan
• LMIA Owner Operator Business Plan
• ICT Work Permit Business Plan
• LMIA Mobility Program – C11 Entrepreneur Business Plan
• USMCA (ex-NAFTA) Business Plan
• Franchise Business Planning 
• Landlord Business Plan 
• Nonprofit Start-Up Business Plan 
• USDA Business Plan
• Cannabis business plan 
• eCommerce business plan
• Online Boutique Business Plan
• Mobile Application Business Plan
• Daycare business plan
• Restaurant business plan
• Food Delivery Business Plan
• Real Estate Business Plan
• Business Continuity Plan
• Buy Side Due Diligence Services
• ICO whitepaper
• ICO consulting services
• Confidential Information Memorandum
• Private Placement Memorandum
• Feasibility study
• Fractional CFO
• How it works
• Business Plan Examples

Business Plan for an Investment Company

Published Dec.20, 2022

Updated Apr.19, 2024

By: Jakub Babkins

Average rating 5 / 5. Vote count: 5

No votes so far! Be the first to rate this post.

Table of Content

1. Investment company Business Plan For Starting Your Own Business

The sample business plan for an investment company outlines the creation of an investment company. The company’s mission is to provide clients with access to a wide range of investment opportunities, including stocks, bonds, mutual funds, and alternative investments. The company will also provide financial planning and wealth management services, including portfolio design, asset allocation, and risk management strategies.

The Investment Company’s business plan includes strategies for marketing and advertising, financial projections, and a detailed description of the company’s services and fees. This is the business Plan for Investors who want to invest in a company with a significant probability of success.

2. Sources Of Financing For Investment Firms

In writing a business plan for an investment company, the sources of financing for investment firms typically include private investors, venture capital firms, angel investors, crowdfunding, and debt capital. Private investors are individuals or groups who invest in the company in exchange for equity or a portion of the profits. Venture capital firms provide financing and advice to companies in exchange for equity. Angel investors are wealthy individuals or groups who invest in companies in exchange for equity. Crowdfunding involves the collection of small amounts of money from a large group of people. Debt capital is a loan secured by the company’s assets and must be repaid with interest.

The most common sources of financing for investment firms are debt financing, equity financing, and derivatives. Debt financing involves loans from banks, other lending institutions, or private investors. Equity financing involves the issuance of stock to raise capital. Derivatives are contracts between two parties that derive their value from an underlying asset or benchmark.

The most important source of financing for an investment company in the business plan investment company is the capital that the company brings in from its own operations.

3. Executive Summary Of Investment Company Business Plan

The business.

The new investment company business plan for an Investment Company is designed to provide an overview of our company’s mission and objectives. We are a full-service investment firm that specializes in providing comprehensive financial advice and services to individuals, families, and business owners. We aim to maximize investment returns and increase our clients’ net worth.

We plan to provide a wide range of services, including portfolio management, asset allocation, retirement planning, estate planning, tax planning, and general financial planning.

Management Of Investment Company

The investment company business plan outlines the management team of experienced financial and legal professionals committed to providing the highest quality of investment management services. Our goal is to create a fully integrated, world-class investment company that provides our clients with a range of innovative and tailored investment solutions.

Customers Of Investment Company

In the investment company business plan template, the customers of our investment company will be individuals, small businesses, and institutions that are looking for a trusted financial partner to help them manage and grow their wealth. We will offer our clients a wide range of services, including portfolio management, retirement planning, estate planning, tax planning, and philanthropic planning. Our goal is to provide our clients with the best advice, products, and services to help them meet their financial goals.

Business Target

The business target for our investment company is to create long-term capital appreciation and wealth for our investors by making prudent investments in start-up and established businesses. Our goal is to be a reliable and trusted partner for our investors and maximize their investment return.

4. Investment Company Summary

Company owner.

Our investment company, JS Investment Group, is owned and operated by John Smith. John Smith is a highly experienced investor and entrepreneur who has successfully founded and managed several small investment company business plans. He deeply understands the investment industry and is passionate about helping others achieve success through strategic investments.

Why The Investment Company Is Being Started

The primary reason for starting an investment company in an investment company business plan sample is to provide clients with a safe and secure place to invest their money. With a wide range of investment options available, our team of experienced financial professionals can help clients make informed decisions about their investments. We also plan to provide clients with up-to-date market analysis and research.

How The Investment Company Will Be Started

The company will seek to raise capital through debt and equity financing. Equity financing will come from the founders and outside investors. The company will also seek to raise capital through debt financing, which will be used to fund the startup costs and ongoing operations of the company. In the business plan for the investment holding company, the company will focus on providing quality investment advice and services to its clients.

The Investment company owner John Smith estimates startup costs based on assets, investments, loans, and expenses in collaboration with financial experts.

JS Investment Group’s start-up requirements include total startup expenses, total assets, total start-up funding, total funding requirements, total assets, total liabilities, total planned investment, total capital, total liabilities, and total funding.

5. Services of Investment Company

The product description section in a business plan for an investment banking company includes services. However, below are the all services offered by our investment company include:

• Investment Advisory: Providing tailored advice and strategies to meet individual, business, and corporate clients’ investment goals.
• Investment Management: The business plan for an investment banking company provides services of designing, constructing, and managing bespoke portfolios for clients, as well as providing ongoing monitoring and rebalancing services.
• Mutual Fund Management: The business plan for an investment management company offers selecting and monitoring mutual funds for clients, as well as providing risk management and portfolio diversification services.
• Estate Planning: Developing strategies for both tax and non-tax-related estate planning objectives.
• Retirement Planning: Assisting clients with the creation of retirement plans and investments to meet their retirement income needs.
• Financial Planning: Helping clients to prepare for their financial future by creating strategies that integrate their investment, tax, insurance, and estate planning goals.
• Risk Management: Identifying and managing investment risks to help clients reach their financial goals.
• Portfolio Analysis: Examining and evaluating portfolios to ensure they are in line with the client’s investment objectives.
• Tax Planning: Developing strategies to minimize the client’s tax liability and maximize after-tax returns.
• Asset Allocation: Designing and implementing asset allocation strategies to help clients meet their long-term financial goals.

6. Marketing Analysis

A marketing analysis is an important part of a sample business plan for an investment company. This analysis provides information on the market in which the company operates, including the size and growth of the market, the competition, and potential growth opportunities.

The investment company market is highly competitive, as investors have a wide range of options when it comes to deciding where to invest their money.

The company will face competition from both traditional and online investment companies. Traditional investment companies offer services such as portfolio management and financial planning. Online investment companies offer services such as stock trading and portfolio management.

In addition to traditional investment companies, investors can choose from online brokers, mutual funds, and other alternative investments. As a result, it is important for an investment company to differentiate itself from the competition and to create a strong value proposition for its customers.

The investment industry is expected to continue to grow as people become more aware of the need for financial planning and the importance of investing.

Market Trends

Excellent work.

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

In order to compete effectively in the investment company market, it is important to understand the current market trends and identify areas of opportunity.

In the investment company business plan example, one of the most important trends to consider is the shift towards more technology-driven investment strategies. This trend is driven by advancements in technology and increased access to data, which has enabled more sophisticated portfolio management techniques.

Additionally, many investors are increasingly looking to alternative investments such as cryptocurrency, venture capital, and private equity as a way of diversifying their portfolios. Furthermore, an increasing number of investors are turning to online trading platforms as a way of managing their investments. Finally, it is important to consider the potential impact of environmental, social, and governance (ESG) investing on the industry, as ESG-focused investments are gaining traction in the financial markets.

Marketing Segmentation

In the private investment company business plan, the company will target a wide range of potential customers, including individual investors, high-net-worth individuals, family offices, and institutional investors. Each of these customer segments will require different strategies and services, so the company will tailor its marketing and services accordingly.

For individual investors, the company will focus on providing personalized services that are tailored to the specific needs and investment goals of each client. The company will also provide educational resources and tools to help clients make informed decisions about their investments.

For high-net-worth individuals, the company will focus on providing personalized portfolio construction and asset management services.

We plan to target high-net-worth, individuals and institutional clients who are looking for a more personalized approach to investing. We will use a combination of traditional and alternative investment strategies to provide our clients with the best return on their investments. We plan to use our extensive network of banks and other financial institutions to secure the most attractive terms for our clients.

We have identified three key areas of focus when it comes to our business plan. First, we plan to build a strong customer base by offering superior customer service and customer education. Second, we plan to develop our own proprietary financial products and services to offer our clients. Finally, we plan to focus on developing relationships with banks and other financial institutions to ensure that we can offer the best terms for our clients.

Product Pricing

JS Investment Group will use a combination of fixed fees and performance-based fees for our services. For our portfolio management and asset allocation services, we will charge a flat fee of 1% of the total assets under management. For our investment research and risk management services, we will charge a fixed fee of $250 per hour.

For our performance-based fees, we will charge a 20% fee on any profits earned by our clients. This fee will be applied on a quarterly basis and will be calculated based on the performance of the portfolio during that period.

7. Marketing Strategy Of Investment Company

Competitive analysis.

The business plan for an investment company covers the company analysis in which the company’s competitive landscape is large and diverse. There are a number of large and well-established firms that have been in the industry for many years. Additionally, there is a large number of small, independent firms that have emerged in recent years.

Sales Strategy

Our sales strategy is to target potential customers through a variety of outlets, including direct mail, email marketing, social media campaigns, and online advertising. We will focus our efforts on targeting potential customers who are likely to be interested in our services, such as high-net-worth individuals, small business owners, and those with an interest in investing. We will also work to build relationships with local financial advisors and other industry professionals in order to develop a strong referral network.

Sales Monthly

The company’s primary source of revenue will be from the sales of investment products, with a focus on monthly sales. The company will also offer financial advice and portfolio management services, for which it will charge a fee. Experts predict the following sales each month for our company.

Sales Yearly

The JS Investment Group will generate revenue by selling various services. Experts predict the following sales yearly for our company.

Sales Forecast

Our sales forecast for the next three years predicts a steady increase in revenue. Below is a forecast of sales for our company:

8. Personnel Plan Of Investment Company

Company staff.

The Company Staff will be responsible for the overall management and operation of the investment company. They will be responsible for recruiting and managing a team of qualified and experienced professionals to ensure the success of the business.  The JS Investment Group operations will require the following employees:

The management staff includes:

• Marketing Manager
• Operation Manager
• Investment Manager

The operational team includes:

• Front Desk Coordinator
• Investment Advisor
• Security Guards

Other Staff includes:

• Administrative Assistant
• Tax Planner
• Receptionist

Average Salary of Employees

The investment holding company business plan includes the average salary of employees, which varies according to the role of employees and services. We will offer competitive salaries to all our employees to ensure we attract and retain the best talent. The average salary of our employees will be approximately $40,000 per year.

9. Financial Plan For Investment Company

In collaboration with financial experts, John Smith assessed the company’s financial needs and developed a financial plan for sample of investment company business plan. A three-year financial plan outlines the company’s development.

Important Assumptions

The following are important assumptions for the financial plan of the investment company:

Deviations, however, are expected to be limited to levels that do not impact the investment company’s major financial goals.

Brake-even Analysis

The following is a breakdown of the investment company’s fixed and variable costs:

The following table shows an analysis of monthly break-evens of an investment company

Projected Profit and Loss

The following is the projected profit and loss for an investment company.

Profit Monthly

Profit Yearly

Gross Margin Monthly

Gross Margin Yearly

Projected Cash Flow

The following column diagram shows cash flow projections.

The following table shows the pro forma cash flow of an private equity firm business plan . The cash flow statement includes cash received from operations, cash received from operations, and general assumptions.

Projected Balance Sheet

Below is a projected balance sheet of an investment holding Company Business Plan that shows data about the pro forma balance sheet, total current assets, total long-term assets, total assets, current subtotal liabilities, total liabilities, total capital, and total liabilities.

Business Ratios

The following table shows business ratios, ratio analysis, and total assets.

10. Get the Expertise to Create a Winning Business Plan!

“Start Your Investment Company with Professional Assistance: Get the Support of OGS Capital’s Expert Team!”

At OGS Capital, our experienced consultants provide professional assistance to help you start and grow your investment company. Our team has in-depth knowledge and expertise in launching businesses, and we understand the complexities of the investment industry. We can provide expert advice and guidance to help you create and execute a custom sample business plan for investment holding company that will ensure your investment company’s success.

We can help you with the entire process of developing your business, from crafting a comprehensive financial plan to finding appropriate funding sources. With our knowledge and resources, we can help you create a detailed business plan that will serve as a roadmap for your business.

• What is the main business of an investment company? The main business of an investment company is to manage investments and provide financial advice and solutions to their clients. They may provide services such as portfolio management, asset allocation, retirement planning and financial planning. They may also offer a variety of other services such as stock and bond trading, insurance, estate planning and tax planning.
• Can I create my own investment company? Yes, you can create your own investment company. The process involves registering the company with the SEC, registering with the state in which you will be doing business, setting up the necessary accounts and paperwork, and finding clients. You should also consult a qualified accountant, lawyer, and financial adviser to ensure you have all the appropriate information and documents in place.
• How much does it cost to start an investment firm? The cost of starting an investment firm will vary depending on the type of firm you are looking to establish and the services you plan to provide. Typically, startup costs can range from $5,000 to $50,000, depending on the complexity of the business. Costs may include office equipment, legal and accounting fees, licensing fees, technology costs, marketing costs, and other miscellaneous costs.

Download Investment Company Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

How to Start a Plumbing Business in 2024: A Detailed Guide

Vegetable Farming Business Plan

Trading Business Plan

How To Write A Textile Manufacturing Business Plan

Start a Vending Machine Business in 2024: A Detailed Guide

Oil and Gas Business Plan

Any questions? Get in Touch!

We have been mentioned in the press:

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Search the site:

Wealth Management Business Plan Template

Written by Dave Lavinsky

Wealth Management Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their wealth management companies. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a wealth management business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Wealth Management Business Plan?

A business plan provides a snapshot of your wealth management business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Wealth Management Firm

If you’re looking to start a wealth management business or grow your existing wealth management company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your wealth management business to improve your chances of success. Your wealth management business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Wealth Management Businesses

With regard to funding, the main sources of funding for a wealth management business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for wealth management companies.

Finish Your Business Plan Today!

How to write a business plan for a wealth management business.

If you want to start a wealth management business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your wealth management business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of wealth management business you are running and the status. For example, are you a startup, do you have a wealth management business that you would like to grow, or are you operating a franchise of wealth management businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the wealth management industry.
• Discuss the type of wealth management business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of wealth management business you are operating.

For example, you might specialize in one of the following types of wealth management businesses:

• Personal Financial Planning and Advice: As the most common form of wealth management, this type of advisory service includes an assessment of financial needs and decisions on investments.
• Asset Management and Allocation: This type of wealth management business assists with maximizing and protecting wealth over the long-term.
• Estate Planning: Wealth management advisory services include oversight of assets, investing for the future and protecting assets.
• Tax Accounting: A tax accounting wealth management advisor oversees all assets and tax preparation, filings, estimates and other tax-related business items.

In addition to explaining the type of wealth management business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients, the total portfolio assets managed, reaching X number of wealth management referrals, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the wealth management industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the wealth management industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your wealth management business plan:

• How big is the wealth management industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your wealth management business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your wealth management business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, families, corporations, foundations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of wealth management business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regard to demographics, include a discussion of the ages, locations, occupations and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Wealth Management Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other wealth management businesses.

Indirect competitors are other options that customers may use that aren’t directly competing with your service. This includes tax accountants, online wealth-building services, and stock brokers. You need to mention such competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them, such as

• What types of customers do they serve?
• What type of wealth management business are they?
• What is their pricing (premium, low, etc.)?
• Do they offer any unique or special values for customers?
• What are their weaknesses?

With regard to the last two questions, think about your answers from the customers’ perspective. And, don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide options for family trust management?
• Will you offer management services that your competition doesn’t?
• Will you provide better customer service than those of your competitors?
• Will you offer packaged services for corporations?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a wealth management business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of wealth management company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide free initial consultations, guaranteed profits on certain assets, or yearly analysis at low to no cost?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the services you offer and their prices.

Place : Place refers to the site of your wealth management company. Document where your company is situated and mention how the site will impact your success. For example, is your wealth management business located in an upper socioeconomic location? Does your business offer amenities for special clients, such as season tickets to venues of their choice? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your wealth management marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in wealth-building periodicals
• Reach out to individuals via personal referrals
• Offer introductory meetings to corporations
• Engage in email marketing by blogging in a Q & A section
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your wealth management business, including answering calls, setting appointments, planning and providing services, billing clients, managing and maintaining accounts, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth new client, or when you hope to reach $X in revenue. It could also be when you expect to expand your wealth management business to a new city.

Management Team

To demonstrate your wealth management business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing wealth management businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a wealth management business or successfully running a small brokerage firm.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you book 5 wealth management clients per week and offer on-site monthly advisory services for corporations? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your wealth management business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a wealth management business:

• Cost of advisory online access to investment information
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of contracted clients you serve.

Writing a business plan for your wealth management business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the wealth management industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful wealth management business.

Wealth Management Business Plan FAQs

What is the easiest way to complete my wealth management business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your wealth management company business plan.

How Do You Start a Wealth Management Business?

Starting a Wealth Management business is easy with these 14 steps:

• Choose the Name for Your Wealth Management Business
• Create Your Wealth Management Business Plan
• Choose the Legal Structure for Your Wealth Management Business
• Secure Startup Funding for Your Wealth Management Business (If Needed)
• Secure a Location for Your Business
• Register Your Wealth Management Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Wealth Management Business
• Buy or Lease the Right Wealth Management Business Equipment
• Develop Your Wealth Management Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Wealth Management Business
• Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

Don’t you wish there was a faster, easier way to finish your Wealth Management business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan services can give you a winning business plan.

Other Helpful Business Plan Articles & Templates

Learn the basics of MTTR

Explore how they differ

Compare CMMS and EAM

Get the latest insights and build on your knowledge from our articles on middleware.

Give a better workplace experience by ensuring the functionality, comfort and safety of the facilities and on the ground.

Combine both software and systems solutions to efficiently store, organize, manage, retrieve and distribute your digital assets.

Learn how to effectively coordinate resources, employees and equipment, in work activities and operations off company property.

Inspect equipments to detect defects both in person and remotely using digital images to maintain quality and safety standards.

Learn why you need real-time visibility into the condition of your assets and a plan to keep them running smoothly when things break.

Learn why and how to build an effective asset lifecycle management strategy for operational efficiency and cost-effectiveness.

Learn the basics of vibration analysis and how it helps to identify, monitor and prevent mechanical failures and costly downtime.

Combine regular maintenance tasks with machine learning, data analytics and predictive asset health monitoring to prevent downtime.

Learn the fundamentals and hottest themes in asset management from our series of explainer videos.

Learn about intelligent asset management systems and how effective management helps to track resources and accelerate costs reduction.

Watch and learn how load balancing can help you maintain highly on-demand digital experiences, website, application and databases.

Less time looking for info. More time exploring sustainability.

Ready to implement bold, sustainable business transformation? Our newsletter can show you how.

What are you searching for?

Couldn't find what you are looking for? Contact us through email . We are happy to help.

A Fund Managers’ business plan

Avoid the pitfalls of under-predicting expenses & over-predicting raising capital

Launching and running a hedge fund is a huge responsibility for any investment manager, requiring a significant amount of oversight for their investors. Making the right strategic decisions upfront is an essential component to a fund manager’s future success. Addressing the major decisions to be made:

• What is the appropriate business plan?
• Do we have the right strategy, structure and jurisdiction?
• How will we raise capital?
• Do we have the resources and technology needed to be scalable?  
• How do we eliminate unforeseen expenses?

Fund managers can get into trouble by having an overly optimistic view. Under-predicting expenses and over-predicting raising capital is the common pitfall, so always take the conservative approach. Based upon the complexity of the investments, expenses may vary from 35K to 100K USD (€27K – €81K) and usually include legal cost, audit and tax and fund administration. Budgets should reflect whether the investors or the investment manager bear the burden. In all cases, creating a methodical business plan – from pre-launch through the fund lifecycle – will help eliminate a significant amount of unforeseen expenses, involve regulatory requirements and tackle investor concerns. 

For most emerging managers, the first year running cost are their primary concern along with raising capital. So opt for a cost-effective ramp up solution as your fund scales. Other factors to consider: 

• Timely and accurate reporting to meet your investor needs;
• Connect with local offices;
• The appropriate technology for your strategy;
• Streamlined execution.

Creating the appropriate structure will be based upon your investment strategy and location of your investors. The most common structure in the US for emerging managers is a Delaware Limited Partnership. These structures are: 

• commonly formed;
• open ended (not limited to the number of US investors);
• non-regulated by the security and exchange committee (SEC);
• cost effective.

Private equity funds are closed-ended (limiting the number of investors), have a typical life span of seven to ten years and are generally more complex than a typical open-ended fund. A significant amount of planning is needed to predict running costs and investment duration throughout the fund lifecycle. These are generally disclosed in the funds formation documents. Raising enough capital is always a key driver, as well as limitation of startup, management and personal expenses.

To successfully grow your fund, you need to have formulated an appropriate business plan and you should have a personal stake in the fund (the ‘Skin in the Game’): why would an investor invest, if you won’t? One of the mistakes emerging managers make is trying to raise capital before drafting their legal documents. This could give the impression that you are not serious about your fund. Most start-up funds raise initial capital from friends and family to develop a track-record, while others focus on institutional and high net worth investors. Considering the right sector, appropriate fees and the right business partner can dramatically improve your results.   

When selecting the right business partner:

• Always consider a firm with a longstanding presence across the globe;
• Find proven expertise, resources and knowledge to stay informed and involved on the appropriate jurisdiction and compliant structures;
• Limit expenses and position yourself in the best possible light to raise capital;
• Check for the option of turnkey solutions if you need them; it helps streamline funds to market while reducing costs;
• Cutting edge technology is a critical component in successful fund administration and corporate services. We advise to select and invest in top class technology.

Just ask yourself: will you be the big fish in a small pond, or a small fish in a big pond? It is extremely important to align yourself with partners that are large enough to provide a comprehensive and seamless service level, yet small enough to offer you partnership and dedication needed. Choose service providers who have your best interest in mind and truly act as an extension of your business. Regardless of your fund size and scope.

Need to know more? The Bolder Group (formerly Circle Partners and AMS Financial) has been working with emerging and established fund manager since the year 2000, playing an essential role in fund structuring, ongoing corporate and legal support, fund accounting and administrations services, register and transfer agency services, financial, regulatory and tax reporting services. We create partnerships with clients and create a customized solution to fit individual needs.

Get a cost estimate

" * " indicates required fields

How can we help you?

Schedule a call.

A guide to marketing strategy for asset managers

By Edgefolio Team – On November 30, 2023

Asset management marketers face with a number of challenges when fundraising. There are more hedge funds than ever, making the job of attracting investor attention harder. On top of this, the vast majority of funds flow to the small minority of funds with known brands and reputations.

To operate in this environment, fund marketers need a robust fund marketing strategy. Scrambling for short-term opportunities must be replaced with a thought-out plan of who you’re targeting, what you’re saying, and how. This plan should take advantage of the technology available as a means to execute the plan, and subsequently track and report ROI, and optimise the strategy.

In our white paper: “ Building a fund marketing strategy ” – available for download now – we go into detail on how to build a marketing plan. This blog gives a high-level outline of what the paper covers.

Considerations for building a fund marketing strategy.

Investor target audience. Know your customer and research their profile. How does an investor that aligns with your strategy differ from other investors? What do different investor types look for in your fund marketing? What makes them tick?

Fund positioning. Establish and articulate your value proposition. Performance and fees are not differentiators for today’s investors. What is your niche? What is special about the team making investment decisions? How is your strategy innovative? How do you compare to competitors?

Marketing tactics and channels. Identify the channels to reach your audience and what messaging to deploy at each phase of the buying cycle. How can you demonstrate the expertise of your leadership? How should you communicate quantitative and qualitative information? How can you build momentum? Do all investor types value the same tactics and channels?

Measuring success and optimisation . Understand the impact of your marketing efforts on your funnel and how to improve ROI. What made an investor reach out to you? What did they engage with prior? What marketing tactics are hitting the mark, and what are falling short? What should you do more of, and what might you abandon?

Technology as an enabler.  Engage the right technology to connect with your investors, remain compliant, distribute data and thought leadership. – and then measure success to refine and optimise.

So we have considered the task at hand. But what are the next steps to building and deploying a marketing strategy? Read the white paper to learn a lot more.

We've detected unusual activity from your computer network

To continue, please click the box below to let us know you're not a robot.

Why did this happen?

Please make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information you can review our Terms of Service and Cookie Policy .

For inquiries related to this message please contact our support team and provide the reference ID below.

Sony and Apollo Move Ahead With Paramount Bid Process but Reticent About Earlier Plan, NYT Reports

FILE PHOTO: The logo of Paramount Pictures studios is pictured after the Writers Guild of America (WGA) said it reached a preliminary labor agreement with major studios in Los Angeles, California, U.S., September 24, 2023. REUTERS/David Swanson/File Photo

(Reuters) - Sony Pictures Entertainment and Apollo Global Management have signed nondisclosure agreements that will allow them to look at Paramount's books ahead of a potential bid for the movie studio's assets, the New York Times reported on Friday, citing people familiar with the matter.

The companies are, however, backing away from an initial plan to make an all-cash $26 billion offer for Paramount, the newspaper said.

Reuters reported this month that Paramount was in talks to open its books to a consortium of the Sony movie unit and the U.S. buyout firm. CNBC later reported that Sony was rethinking its bid, sending Paramount's shares tumbling and helping the Japanese firm's shares surge after upbeat earnings.

Sony and Apollo are now contemplating a variety of approaches to acquire Paramount's assets, the New York Times said.

Paramount declined to comment on the report, while Sony and Apollo did not immediately respond to a request for comment late Friday.

Like other studios, Paramount has been struggling to recover from last year's months-long strikes by Hollywood writers and actors, a soft advertising market and falling cable subscriptions in the United States which have eroded profits for its TV business.

Paramount has also been talking with Skydance Media but earlier this month ended a period of exclusivity in the negotiations.

(Reporting by Mrinmay Dey in Bengaluru; Editing by Edwina Gibbs)

Copyright 2024 Thomson Reuters .

Tags: United States , Japan

The Best Financial Tools for You

Credit Cards

Personal Loans

Comparative assessments and other editorial opinions are those of U.S. News and have not been previously reviewed, approved or endorsed by any other entities, such as banks, credit card issuers or travel companies. The content on this page is accurate as of the posting date; however, some of our partner offers may have expired.

Subscribe to our daily newsletter to get investing advice, rankings and stock market news.

See a newsletter example .

You May Also Like

7 best cryptocurrency exchanges.

Jeff Reeves May 22, 2024

6 Best Biotech Stocks to Buy for 2024

Wayne Duggan May 22, 2024

Bill Gates Portfolio: 7 Best Stocks

Brian O'Connell May 22, 2024

Top Fidelity Funds for Retirement

Tony Dong May 22, 2024

7 Stocks That Outperform in a Recession

8 Best High-Yield REITs to Buy

Tony Dong May 21, 2024

Elon Musk's Record of Overpromising

Wayne Duggan May 21, 2024

What Are Magnificent 7 Stocks?

9 Biggest Financial Fraud Cases

Brian O'Connell May 21, 2024

6 Best Vanguard Funds for Retirement

Coryanne Hicks May 21, 2024

Sell in May and Go Away in 2024?

Dmytro Spilka May 20, 2024

7 Best Funds to Hold in a Roth IRA

Tony Dong May 20, 2024

Cheap Dividend Stocks to Buy Under $20

Wayne Duggan May 20, 2024

7 Cheap ETFs to Buy Now

Glenn Fydenkevez May 20, 2024

Utility Stocks for Dividends

Matt Whittaker May 17, 2024

9 Growth Stocks for the Next 10 Years

Jeff Reeves May 17, 2024

7 Best Money Market Funds for 2024

Tony Dong May 17, 2024

5 Best No-Load Mutual Funds

Coryanne Hicks May 17, 2024

Top Stocks From All 11 Market Sectors

Glenn Fydenkevez May 16, 2024

Top Ray Dalio Stocks for 2024

Brian O'Connell May 16, 2024

Cookies on GOV.UK

We use some essential cookies to make this website work.

We’d like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services.

We also use cookies set by other sites to help us deliver content from their services.

You have accepted additional cookies. You can change your cookie settings at any time.

You have rejected additional cookies. You can change your cookie settings at any time.

• Environment
• Environment Agency business plans

Environment Agency business plan 2024 to 2025

Published 20 May 2024

Applies to England

© Crown copyright 2024

This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected] .

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

This publication is available at https://www.gov.uk/government/publications/environment-agency-business-plans/environment-agency-business-plan-2024-to-2025

1. Introduction

We are the Environment Agency ( EA ), a non-departmental public body established in 1996 and sponsored by the  Department for Food and Rural Affairs ( Defra ). In our roles as regulator, operator, adviser, responder, and research centre, we are tasked with:

• protecting and enhancing the environment as a whole
• contributing towards sustainable development

Our remit primarily covers England, though our influence and collaboration with other UK environmental bodies and partners extends beyond England’s borders. England represents approximately:

• 13 million hectares of land
• 22,000 miles (35,000 km) of river
• 3,100 miles (5,000 km) of coastline seawards to the three-mile limit, which includes 2 million hectares of coastal waters

Through our work we contribute towards the UK government’s 25 Year Environment Plan ( 25YEP ) which launched in January 2018. It set out 10 ambitious goals relating to key aspects of our remit including:

• the environment
• biodiversity
• air quality
• waste reduction
• climate change mitigation

The Environment Act 2021 legally enshrined the commitment to refresh the 25YEP every 5 years. In 2023 the first review of the 25YEP resulted in the Environmental Improvement Plan ( EIP ). The plan builds upon the vision of the 25YEP and sets actions to achieve its goals. It reflects the UK’s commitment to environmental stewardship and global biodiversity conservation.

Key areas we contribute to include:

• halting biodiversity decline
• resource management
• climate change adaptation
• enhancing beauty and heritage

EA2025 – our current 5-year corporate action plan – comes to an end in March 2025. It reflects the ambition of the 25YEP .

This business plan sets out our priorities for 2024 to 2025. It will help focus our delivery as we transition to a new corporate action plan in our 30th anniversary year.

2. Foreword from the Chair

As the primary environmental regulator in England, we exist to create better places for people, wildlife, and the environment. We are here to:

• protect and improve the environment
• support sustainable development

This business plan represents a hugely important and exciting step forward for the Environment Agency. It will guide our delivery towards this mission for 2024 to 2025.

As Chair, I regularly meet with our partners, stakeholders, and communities up and down the country. They tell me they want the Environment Agency to:

• keep rivers clean
• hold polluters to account
• protect homes and businesses from the devastating impact of flooding

Their expectations are clear, and we must strive to meet them. Ultimately, we will be judged on our performance and the outcomes we deliver. We must therefore find ways to enhance and improve it in everything we do.

In the year ahead this includes:

• supporting our people to be more integrated and able to work more effectively as one team
• increasing transparency
• improving the way we use data and information to inform our decisions

This is already happening with regards to our role in ensuring people and wildlife have clean and plentiful water. This will continue to be a huge focus for the organisation. It remains one of the biggest challenges we face but also one of the biggest gifts we can give to future generations. This plan highlights work we will do this year to improve water quality. I look forward to meeting many of our new recruits who will drive this work forward in the year ahead.

We will contribute to green growth and a sustainable future for the country through our continued work on:

• the Flood and Coastal Erosion Risk Management Programme
• maintaining our strong performance on regulation

We can look back on 2023 to 2024 and be proud of what we have delivered. Through this business plan we can also look forward with a sense of optimism and determination. We know that if we can deliver it, we can achieve excellence as a leading environmental regulator. And more importantly make many people’s lives, and the places and environments in which they live, much better.

Alan Lovell, Chair

1 April 2024

3. Foreword from the Chief Executive

Our 2024 to 2025 business plan marks the next stage in our journey. We shall focus on:

• meeting the aspirations and standards the public hold for us
• expanding our work on water quality and waste management
• committing to challenging but realistic efficiency and savings targets

We start the year having achieved very good results in 2023 to 2024. This includes:

• protecting more homes from flooding
• delivering an excellent incident response
• cleaner healthier air (year-on-year reduction in pollutants)
• protecting people and the environment through effective regulation (97% compliance at permitted sites)

Our customer service improved too, as we met Freedom of Information deadlines and service standards for permitting.

We have delivered these improved results whilst managing one of the wettest winters on record.

Three years into the second flood asset capital programme , we have protected an additional 88,272 properties (101% of target) on top of more than 314,000 homes protected under the first 6-year programme. Over the last winter period, sadly almost 7,000 properties did flood (with over 240,000 properties protected) which underlines the on-going threat flooding poses to people’s lives and livelihoods.

I pay tribute to all our staff who worked tirelessly, often through weekends and holidays, to deliver an effective response to the weather and flooding we experienced last year.

As we look to 2024 to 2025, we will meet 2 major challenges. Firstly, to deliver a step change in our work on water quality. This follows the government’s approval to invest up to £53m in a new water inspection, enforcement, and data capability. This will ensure we can play a key part in delivering the government’s accelerated Plan for Water , assessing our progress and contribution against our targets and performance framework. We will need to work with all parties to move the dial on water quality and we are determined to succeed as a regulator in this domain.

Our second challenge will be to realise a major step forward on waste management. The coming year has many critical milestones as we deliver the government’s ambitious waste strategy. Core to success will be finding our voice as a confident regulator, which responds to the concerns of communities impacted by poor waste management and waste crime.

Our people are of course at the heart of what we do. In the year ahead we have set targets to improve diversity, building on our success in the last year. We want to introduce new talent schemes, particularly for under-represented groups, expand our work in sponsoring early career professionals, and sign the Armed Forces Covenant.

We know we can rely on our talented, passionate, and skilled staff to deliver for the environment and our communities in the year ahead.

Philip Duffy, Chief Executive and Accounting Officer

4. Final year of our 5-year corporate plan – EA2025

2024 to 2025 will be the final year of our current 5-year corporate action plan – EA2025 .

• reflects and connects with our people’s passion to protect and enhance the environment
• maps our varied and wide-reaching work to the ambition set out in the 25 Year Environment Plan ( 25YEP )

In the period of EA2025 the world came to grips with the Covid 19 global pandemic. For the Environment Agency, EA2025 helped us retain our sense of purpose and come through an enforced transformation on working practice. The pandemic also heightened the public’s awareness and appreciation of the environment and the places people live.

Our delivery of EA2025 has been tracked and published on GOV.UK in regular quarterly updates of our corporate scorecard . Whilst some of the measures have evolved over the period between 2020 to 2024, we can track our progress in delivering for the places and communities we serve. Our results in 2023 to 2024 are the latest in that series.

Looking ahead, we shall replace EA2025 with our new corporate action plan in 2025 when we will celebrate our 30th anniversary. We are focusing increasingly on the things we are uniquely placed and empowered to do to deliver against our long-term goals set out in EA2025. This focus aligns with:

• growing expectations of the public
• contributing to the delivery of the government’s Environmental Improvement Plan ( EIP )
• other significant contributions we make across a range of government policy and environmental legislation, including net zero and levelling-up

This 2024 to 2025 business plan will help us focus on:

• leveraging our roles (regulator, adviser, operator, responder and research centre)
• the powers given to us by government (as part of our statutory duties and legal responsibilities) to deliver on and progress the ambition set out in our long-term goals

In renewing our corporate plan, we shall take the opportunity to ensure we provide clarity to our people, our partners, and stakeholders, those we regulate, and the public on:

• our purpose as an organisation and our vision for the future
• how we shall bring all the resources we have to bear in delivering against that vision

5. Our performance in 2023 to 2024: making a difference

The Environment Agency use a red, amber, green system to see how we are performing:

• green - we are performing at or above the target(s) set
• amber - we are falling slightly short of the target
• red - there are improvements to be made

This table shows the red, amber, green scores for the measures plus the actual and target figures.

5.1 Corporate scorecard 2023 to 2024

6. our priorities and focus for 2024 to 2025.

In 2024 to 2025 we will do all we can to better enable our people to meet the challenges we face in the years ahead.

To do this means embarking on a journey of transformation. This is crucial if we are to secure the developments needed to improve our services to the public and to those we regulate.

A fundamental part of this journey will mean driving efficiencies and delivering better outcomes. In 2024 to 2025 we will focus on:

• developing and recruiting people with new skills
• applying new digital technology tools
• embracing a culture of innovation and agility
• providing clarity on priorities
• streamlining how we do things
• removing duplication
• speeding up decision making and action

Transformation will also underpin our drive to deliver efficiencies against our grant-in-aid and charges income. This will all mean we are better able to align our resources and effort to secure the best possible outcomes for people and the environment.

Our people are central to our future success. We will therefore continue to:

• prioritise their health, safety, and wellbeing
• provide opportunities for personal development and offer flexible working
• provide an inclusive and supportive working environment that reflects the diversity of the communities we serve

7. Focus areas for the year ahead

Our focus on water will mean a significant uplift in resources for our work to improve water quality, and options to address water quantity. We will :

• hire our first new water regulators and begin training them, as we expand our water industry water quality regulation teams from 130 staff to 340 by the end of the year
• deliver 4,000 inspections of wastewater and storm installations, and we will publish our findings
• look at options to use near real time event duration monitoring data, when it becomes available, as a development from the new data capabilities to provide mapped data on storm overflow spills and flow to full treatment data, which are already in use by Area teams
• complete 4,000 agriculture outcomes and farm inspections
• invest an additional £5.8m in 2024 to 2025 in water industry enforcement activity, enabling us to effectively tackle the worst offenders and make full use of voluntary undertaking and variable monetary penalties to tackle serious environmental offending impacting water
• continue to drive water industry investment through Price Review 2024, including securing options to close the 5 billion litre-per-day gap between supply and demand, and ensuring that the water industry deliver on their legal obligations to improve the water environment
• work with all water abstractors to help them understand and secure their water resilience
• deliver government initiatives to identify new water resource options, enable more efficient water use and return more water to the environment
• produce comprehensive classifications for all bathing waters, incorporate new bathing water designations in our operational activities, and ensure action plans are in place to address risk of non-compliance
• deliver the requirements of the River Basin Management Plan cycle and maximise Water Framework Directive delivery to 2027
• increase our Water Environment Improvement Programme delivery to £14.5m through partnership-working, delivering outcomes on Water Framework Directive measures
• deliver the Environment Agency elements of the Plan for Water

7.2 Flood and Coastal Erosion Risk Management Programme

In the year ahead we will:

• continue to deliver the government’s £5.6bn programme for flood protection and resilience including year 4 of our current six-year capital programme; the £200m flood and coastal innovation programme and the £25m natural flood management programme
• deliver the £100m Frequently Flooded Allowance to protect communities that have suffered repeated flooding, and the £75m Internal Drainage Boards fund to protect agricultural land and rural communities
• publish our next National Flood Risk Assessment ( NaFRA2 ) - this will provide an up to date understanding of both current and future flood risk for rivers, the sea and surface water
• develop our long-term investment plans for future flood and coastal resilience in advance of the next spending review
• complete the renewal of our commercial frameworks and establish a new charter for working collaboratively with our suppliers
• develop a strategy for improving the performance and reliability of our flood and navigation assets
• deliver on our Category 1 responder role to deliver a flood warning service under the Civil Contingencies Act (2004)

7.3 Waste and resources regulation

We will work to support the government’s ambitions for waste reduction through:

• focusing on our compliance work on poor performing waste management operators and directing resources to sites presenting a high fire risk or risk of abandonment
• increasing our emphasis on ‘upstream’ interventions, undertaking waste classification, waste acceptance and producer responsibility checks to prevent harm - such as the handling and disposal of non-permitted waste and sulphate waste as landfill and deposit for recovery sites
• directing our response to waste crime on the greatest threat, risk and harm, using best practice in risk assessment - this will mean closing high-risk illegal sites, stopping illegal waste exports and the mis-description of waste
• strengthening our intelligence-led approach and our collaboration with partners to target effort on offending and criminality in the waste sector
• our Waste Regulatory Reforms Programme to develop a new delivery model for new duties and introduce the Extended Producer Responsibility for packaging - this is worth £1.2bn per annum to the UK’s Gross Domestic Product

7.4 Regulation

We will be a confident regulator and maintain our strong performance on regulatory activities, including:

• focusing on high-risk activity, including Control of Major Accidents Hazards ( COMAH ), landfill regulation and abandoned sites, hazardous waste, agriculture compliance, oil refineries, nuclear sites, and radioactive sources to minimise adverse impacts on the environment and communities
• using our regulatory and advisory roles to support the nuclear sector’s contribution to sustainable development by delivering regulation and advice across the civil and defence nuclear lifecycles - delivering the programme to prepare for the regulation of Advanced Nuclear Technologies ( ANT ), including fusion
• ensuring we have a sustainable and class-leading permitting system
• supporting climate resilience and environmental protection and development of decarbonisation – Carbon Capture Utilisation and Storage ( CCUS ), hydrogen, decarb ready, advising government, developing regulatory approaches to innovation, implementing relevant legislation
• spatial planning – influencing strategic planning to identify opportunities for improving environmental and climate resilience. This includes working in partnership with others to protect, create and restore wildlife rich habitats and support nature recovery. Identification of environmental limitations that may shape and inform development programmes, particularly around water quality and water scarcity.
• focusing on our service to customers, delivering permit reviews, reservoir permits, Environmental Permitting Regulation ( EPR ) permits, water industry permits, digitalisation and standardisation of low-risk permits. We will adopt the new triage approach to enforcement, ensuring it is timely, intelligence-led and target effort based on threat, risk, and harm.

7.5 Organisational transformation

We will modernise our services and working environment through:

• creating a new unit in the business - the Strategy, Transformation and Assurance Directorate - to deliver ‘do it once’ services, improve our IT-enabled transformation effort, raise standards in our offer to our staff and provide better assurance of compliance across the business
• identifying and targeting key functions such as permitting that can benefit from digitalisation and service revision, through which we will deliver better customer experience and improved operational efficiency
• progressing towards our high ambitions for our staff through keeping them safe, strengthening our culture, offering a new talent scheme, greater interchange, new governance and initiatives to improve representation of staff from minority ethnic backgrounds by 1.5 percentage points
• improving our employee offer through targeted skills development, attraction and recruitment actions, and a continuous focus on how we reward our people, all guided by our People Strategy
• maintaining our performance against the Information Commissioner’s Office ( ICO ) standards for Freedom of Information and advancing plans to proactively publish more information

7.6 Efficiencies and value for money

We will improve management of our finances and value for money by:

• delivering £15m efficiencies to fulfil our Spending Review commitment, whilst maintaining performance
• reprioritising £8m of spending towards front line water quality work, which will be delivered by efficiencies
• reviewing more of our fees and charges, to ensure that the true cost of services is met by those that use them and bring our charges into line with other government bodies
• establishing a robust commercial plan to make best use of our assets to deliver greater taxpayer value and improve maintenance of our assets wherever possible
• continuing our close collaboration with the National Audit Office ( NAO ) to improve our understanding of our asset base, with a view to removing remaining accounting qualifications and holding significantly improved technical data

7.7 Providing advice to government

We will deliver on our role as the government’s adviser on pollution and environmental risks by:

• reinforcing our nuclear programme, with dedicated focus on Sizewell C nuclear power station
• continuing our programme of managing emerging threats, including work with the Health and Safety Executive on the management of per- and poly-fluoroalkyl substances ( PFAS or ‘forever chemicals’), the implementation of our Methane Plan, and further advisory work on emerging technologies
• reviewing and revising our monitoring work for further opportunities to leverage digital technology to improve the insights and evidence it provides
• advising on, influencing, and implementing planning reforms and levelling up agenda through informing changes to the town and country planning regime and accelerated Nationally Significant Infrastructure Project delivery
• providing a strategic overview role on all sources of flood risk from rivers and the sea
• driving the government’s waste reform projects in partnership with Defra , to deliver a more circular economy and reduce waste crime

8. How we will know we are succeeding

Our 2024 to 2025 priorities, targets and corporate scorecard measures.

8.1 Incident response

We will prepare for, respond to and support recovery from high-risk flooding and environmental incidents including major incidents.

Target and measure for 2024 to 2025

We will target 90% resilience in our capability to respond to incidents.

8.2 Capital programme

We will deliver the agreed capital programme for both the Environment Agency and Risk Management Authorities to better protect properties from flooding by 2027 and deliver wider environmental benefits.

We will target:

• a cumulative total of 114,000 properties better protected from flooding as part of the second programme of the Flood and Coastal Erosion Risk Management Capital Investment Programme (2021 to 2027)
• 80% on track / complete innovation actions delivered in flood and coastal resilience to adapt to a changing climate

8.3 Planning

We will influence local authority planning decisions and Nationally Significant Infrastructure Projects ( NSIPs ) to deliver good environmental outcomes.

• 97% of local authority planning decisions that we successfully influence
• 97% of Development Consent Orders ( DCOs ) for Nationally Significant Infrastructure Projects ( NSIPs ) that we successfully influence

8.4 Asset operation and maintenance

We will maintain our assets to ensure reliable operation and response.

We have a target of 94.5% of assets at required condition. The winter storms between 2023 and 2024 have had a significant impact on existing assets. While we will endeavour to repair and maintain our assets, the more likely outcome for 2024 to 2025 is 92%.

8.5 Compliance

We will ensure effective compliance with a focus on our statutory duties.

• 97% compliance with environmental permits
• reducing the number of serious environmental incidents from permitted sites, activities, and sources we regulate directly to an annual limit of 150

We will deliver the Environment Agency elements of the Plan for Water.

• conduct 4,000 water company compliance inspections
• target 90% of non-compliant water company sewage treatment works to be brought back into compliance
• target completing 4,000 agriculture outcomes and farm inspections

We will reduce the impact of regulated and illegal waste on the environment.

We will target at least 90 high-risk illegal waste sites ( IWS ). They will be ‘stopped’ which means either:

• there is subsequently no activity for a minimum of 28 days
• that site has been brought into compliance

8.8 Habitat restoration

We will deliver environmental enhancement and restoration where we have a statutory duty.

We will target creating or restoring 1,250 hectares of wildlife-rich habitat, delivering Environmental Net Gains to benefit people and wildlife.

8.9 Sustainability

We will deliver our corporate sustainability commitments to meet government targets.

• reduce our carbon emissions to 250,697 tonnes
• become a net zero organisation by 2045 to 2050

8.10 Transformation

As part of a wider transformation programme, we shall review and revise our end-to-end services and the use of digital technology to support our people to deliver.

We will target the equivalent of £15m savings in grant-in-aid and £8m savings in charges income.

8.11 People

Our people’s safety is our top priority. We also want people to be their best selves when working at the Environment Agency and strive to ensure our people reflect the diversity of the communities we serve.

• a 0.11 Lost Time Incident ( LTI ) frequency rate limit per 100,000 hours
• a rate of 50% of executive managers who are female, and 7.6% of staff from minority ethnic backgrounds

9. Our funding

The Environment Agency’s total budget for 2024 to 2025 is £2,086m. This is an increase of £125m compared to our £1,961m budget in 2023 to 2024 and includes:

• government approval to invest up to £53m to deliver the Plan for Water
• a £9m increase in water resources charges relating to Kielder Water in Northumberland (the largest man-made lake in Northern Europe)

As shown in the table, funding to deliver:

• our flood related outcomes is predominately received from government
• environment protection outcomes is predominately generated through our fees and charges

This budget has been allocated across the business to:

• maximise our ability to deliver as one organisation
• enable the delivery of our priorities set out in this business plan

We are committed to efficiencies as a public body. We will deliver £15m of efficiencies this financial year to fulfil our Spending Review commitment. We have also committed to provide an additional £8m from existing resources to fund the commitments set out in the Plan for Water. We aim to deliver these savings by efficiencies. As such a new corporate scorecard measure has been included to capture this commitment. 

Our budget will also change throughout 2024 to 2025 as we are expecting to receive £5.8m to fund water quality enforcement. Our charge income may also increase depending on the outcome of charge reviews in progress.

We are also looking to the future and will develop an over-arching funding strategy to prepare us for future years. This will include proposals such as:

• a commercial plan
• maximising cost-recovery
• work to a prioritised fees and charges programme
• gaining agreement to have greater flexibility in our funding

The aim is to enable us to be more agile and responsive to fast evolving priorities so we can deliver the expectations placed upon us.

Is this page useful?

• Yes this page is useful
• No this page is not useful

Help us improve GOV.UK

Don’t include personal or financial information like your National Insurance number or credit card details.

To help us improve GOV.UK, we’d like to know more about your visit today. Please fill in this survey (opens in a new tab) .