Like many other areas of human endeavor, modern business is undergoing the process of digital transformation. Modern companies can and should concern themselves more with the acquisition of digital assets. Here are three Digital Age assets that can make you and your company wealthy.
If the global pandemic of 2020 proved anything, it established the resiliency of the international stock market. Although individual industries took damage, the overall stock market didn’t suffer as it had during past crises.
Outside of the travel and restaurant industries, stocks proved amazingly resilient. Having learned from the housing crisis of 2008, global financial regulators acted quickly to inject liquidity into the market. In turn, this helped prevent the loss of confidence that has caused market collapses in the past.
Clearly, stocks are essential for building long-term financial stability. Whether it comes to personal or corporate finance, stocks have clearly earned their positive reputation. Society has figured out how to keep the stock market relatively stable at all times. Still, one should remain conservative when building a stock portfolio.
Most experts do not encourage speculating on individual stocks. This is sometimes called value investing. Most financial advisers are far more apt to recommend index funds, ETFs, and mutual funds. It’s a common misconception that only large companies need to invest in stocks. Any organization that wants to have long-term fiscal stability can use stocks to store and build wealth.
When Bitcoin was released to the world, a lot of people showed initial skepticism. By now, it is clear that cryptocurrency is here to stay. In time, one might even see Bitcoin becoming as mainstream as MasterCard and Visa. Not even major regulatory action can deprive Bitcoin of relevance in the modern financial world.
There are a number of other cryptocurrencies which are getting people excited. Nevertheless, Bitcoin remains the digital coin of choice. Indeed, more and more companies are accepting Bitcoin as payment in retail transactions. As other digital assets gain prominence, stay willing to diversify your holdings in new ways.
3. A Strong Digital Brand
Arguably, a solid digital brand is one of the most overlooked assets any organization can have. Traditionally, companies focused on product development to the exclusion of all else. In today’s developed economy, it is near-impossible to offer a product or service that is completely unique.
While innovation remains important, developing your digital brand is the key to building long-term commercial success. When you put all of your energy into developing a specific product or service, this can limit your ability to grow and evolve.
With a powerful brand, you can adapt your products to meet the changing demands of the public. Thinking of your brand as an asset can help you keep focused on long-term brand development.
In the distant past, many businesspeople focused exclusively on building cash reserves. While there’s nothing wrong with maintaining liquidity, the focus has now moved to build assets. With the right mix of assets, your organization can survive economic events that shake competitors to the core.