Many of you are engaged in some form of business and employ quite some assets in generating revenue. Basically, you use solid assets and soft assets. There is another category of assets which you use but do not understand how these are functioning. These assets are known as “Cosmic Assets”. Let me explain solid assets, soft assets and cosmic assets:
Solid Assets
These are hard assets employed in a business and have several features such as tangibility, physical dimension, durability and reality. Land & buildings, plant & machinery, tools & equipment, inventory, vehicles, furniture & fittings are key assets under this category. Most of these have re-sale value. However, these assets are fairly illiquid in the sense that there is no ready or over the counter market.
Soft Assets
Softs assets are divided into four groups:
1. Financial Assets: In contrast to solid assets, financial assets do not convey any sense of durability or reality. Though there is tangibility of sort, soft assets can vary in terms of physical appearance. Currency or stock/bond certificate has physical appearance whereas balance in a bank has a notional appearance. As regards to liquidity, money and bank balances are very liquid while share/bond certificates could range between liquid to illiquid due to market conditions. Financial assets have realisable value
2. Intangible Assets: As soft assets intangibles do not have a ready price tag. Other than that these assets do have physical characteristics in the form of drawings, models etc. Intangibles of a business include: Technology, Patents, Brands, Logos, Names, Designs, and Copyrights. All these are now protected as Intellectual Property Rights (IPR). In order to make Intangibles soft assets you have to ascribe monetary value. This is done in two ways:
I. When a business is a going concern intangibles could be valued and shown in the financial statements of a business as an off-balance sheet item
II. When a business is sold it is gone concern and intangibles are valued and collectively called as goodwill
3. Human Pool: People employed in a business is an important soft asset. There is no doubt that they generate the cash-flow for the business
4. Customer Relationship: A business exists in an environment where people inside the business interacts with customers outside a business to generate sales and realise revenue. Hence, customer relationship is an important soft asset
Cosmic Assets
Cosmic assets are interwoven in a business. You neither recognise these cosmic assets nor understand how to harness their cosmic energy. The lucky business gets it right when the cosmic assets start functioning on their own. That is why 90% of businesses are not successful. If you understand and evaluate cosmics you can employ the cosmic assets to your own advantages.
Let me list below few forms in which cosmic assets are seen:
1. Steven bought a furniture business; first thing he did was to get rid of the wooden table the previous owner was using. Within few months the business crashed. Steven still does not know that the table brought the business
2. Business name of a jeweller has the letter “m” in a prominent manner; his business is thriving even during recession
3. The name and emblem of North Atlantic Treaty Organization (NATO) has cosmic power that last for several decades
4. Old and tested Cuticura soap and talcum powder are sold since 1865 relatively unchanged.
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