Top 6 Asset Tracking Challenges in Small Enterprises

Updated October 6, 2023

Assets play a critical role in a business, and they ensure smooth day-to-day operations. However, this isn’t as easy as it seems, and managing assets in a small enterprise is a common challenge. Nowadays, most businesses are embracing technological tools to track assets and ease maintenance processes. Nonetheless, mro maintenance mostly depends on your type of business, and lack of strategic asset management procedures can result in significant operational hurdles.

Here are asset tracking and management challenges that you should know:

  1. Asset theft

Most small businesses lack information on all the business assets and their location. This creates loopholes for employees to steal the company’s assets without the management realizing it. Worse still, as the business owner, you end up incurring additional costs replacing lost office equipment.

  1. High asset costs

If you don’t know your assets’ condition, you’ll spend more on repairs and maintenance. Sadly, this s what happens to most small enterprises. For instance, if you don’t track your company’s equipment, you won’t know when to repair it or replace faulty parts. You only do this when the machine breaks down, which affects your business operations, and is more costly to repair.

  1. Budgeting issues

Not knowing the exact number of office equipment makes it difficult to budget for asset maintenance. You won’t know what needs repairs or replacement and at how much. You also incur unexpected expenses, and some may cost more than expected. However, with a clear image of your company’s assets, you can tell what needs repair, when and at what cost.

  1. Increased injury risk

Poorly maintained equipment increase the risk of workplace injuries. In most cases, this results from assets management systems. For example, a faulty ladder and other climbing equipment can expose your employees to falls and severe injuries, which can cost the company a lot of money.

  1. Legal liabilities

As mentioned earlier, the lack of proper asset management systems in your businesses increases employee injuries which can be costly. Worse still, accident victims can file a lawsuit against the company and demand compensation for the damages.

What’s more? cmms for hospitals also save a lot of trouble in health facilities. Without proper asset maintenance systems in place, health professionals may use faulty equipment on patients. And this can result in a wrong diagnosis and medical malpractice lawsuits.

  1. Loss of business

Lack of asset management systems leads to equipment breakdown and failures, affecting business operations in numerous ways. In most cases, employees are unwilling to explain what’s happening to your clients, leading to loss of clients and profits.

How can you overcome asset tracking challenges in your small business?

Running a small business means fewer employees who play multiple roles. Buy, you should assign one person to help track assets. He or she should know your company’s assets, location, present condition, and maintenance schedules. Not having this valuable information can lead to costly repairs, financial loss, and tax issues.

To avoid this, take stock of all the assets and inventory in your company. Also, include specific details, specifications of equipment rules, if any. Know the location of all your assets and whether they are housed in one location or multiple places.

Lastly, track your assets and who’s using what and when making it easier for employees to use what they need. You can also use modern management tools to track your assets to streamline processes, schedule maintenance, and increase efficiency. And the best bit? You can now get the best CMMS software and use it to ease preventive maintenance operations in your business.

The bottom line

Small businesses face numerous challenges during asset management. Many lack the right expertise to track their assets and spend a lot on maintenance and repairs, which can be avoided. The best way to deal with asset management challenges in your small venture is to acquire an asset management software system. This will allow you to track your assets, improve efficiency, lower maintenance costs, and grow your small business.