24 Assets primer

The value of a business derives from the unique set of assets it develops over time. Assets are stores of value that last in perpetuity and provide a special edge to your business. They deliver value to your customers/employees consistently for at least 90 days even if the founder/key team members are completely disconnected from the world.

The book 24 Assets by Daniel Prestley highlights the importance of developing assets for your business. Assets are necessary to increase the value of your business to potential investors, or just future-proof your enterprise against the inherent uncertainty coming from the external environment. The more assets you foster, the higher the value and strength of your business, according to Daniel Prestley. Every business focuses on 2-3 core assets at the beginning, before branching out to build other assets. When you analyze businesses, according to Prestley, you can correlate the number of assets they have developed over time with the value of the business.

There are 7 asset categories, each composed of specific assets for a total of 24 assets, according to Prestley. Developing these assets requires patience, full commitment, and discipline to stick through the process in the long run. The seven asset categories as outlined by Daniel Prestley are:

1. Intellectual property - valuable ideas and methods protected legally
2. Brand - being known, liked, and trusted
3. Market - unique advantage to sell products faster/more cheaply/with higher quality
4. Product - the ecosystem of products you offer to the world and their unique value proposition
5. Systems - internal systems that save time and increase effectiveness
6. Culture - how you attract, retain, and develop people
7. Funding - the ability to raise capital effectively and in better terms than other businesses

Each category is composed of specific assets that you can develop over time by making them active initiatives within your business so that you can focus your attention on each of them to create solid and scalable foundations that will propel your business forward.

I will be releasing more content about the 24 assets framework soon, as I believe this mental model applied to any business can truly make a difference.