Protecting Business Assets with the 24 Assets Framework

Every business needs a proactive plan to safeguard its assets as part of a comprehensive risk management strategy. Does yours have one?

At Contiguglia Law Firm, we help businesses ensure their assets are secure and legally protected, giving them the confidence to grow and thrive. As part of our ongoing efforts to help businesses protect their assets, we’ll discuss the 24 Assets Framework in this article.

What is the 24 Assets Framework?

The 24 Assets Framework, developed by Daniel Priestley, highlights the pressing areas businesses must identify, protect, and leverage their most valuable resources.

These assets cover a business’s major vulnerabilities and ensure there aren’t any blindspots in their risk management approach.

Below, we’ll cover an overview of the 24 assets and why protecting them is so important.

Funding Assets

Funding assets play an important part in getting the capital necessary to expand and sustain a business. Protecting these assets ensures businesses remain financially stable and can access favorable borrowing arrangements.

The four funding assets are as follows:

Business Plan: Get confidentiality agreements in place to prevent unauthorized business plan sharing. With regular updates to the plan, you can be confident it remains relevant and aligned with current market conditions.
Business Valuation: Frequent valuations help businesses confirm that their value is reflected appropriately. Engaging independent valuation specialists and obtaining documents help address possible conflicts.
Structure: Creating a clear organizational structure with suitable legal frameworks, such as limited liability or partnerships, can be effective risk management strategies. Perform regular audits of compliance with corporate governance policies so nothing is overlooked.
Risk Mitigation: Insurance coverage, contingency plans, and diversification strategies are vital. Have your legal team or outside counsel develop and review contracts to ensure they cover any conflicts or unanticipated situations.

For more on risk mitigation, read this article next: Legal Risk Management: Turning Risks Into Business Opportunities.

Culture Assets

Culture assets help businesses attract and retain top talent while fostering an environment of innovation. Protecting these assets involves both proactive legal measures and ongoing compliance.

Priestley lists four culture assets:

Key People of Influence: Drafting strong employment contracts that include non-compete clauses and intellectual property agreements protects influential team members’ contributions.
Marketing and Sales Team: Periodic training on compliance with labor laws and workplace ethics fosters a stable and productive team environment.
Management and Administration: Effective administration systems let team members focus on value-added work rather than routine tasks. Tracking KPIs via dashboards enhances transparency and decision-making. Keeping these systems updated, documented, and user-friendly helps new team members integrate fast and perform well.
Technicians: Implementing clear ownership policies for work-related creations ensures proprietary processes and inventions remain with the business, even when employees leave.

Systems Assets

Efficient systems and processes improve a business’s capacity to run smoothly. Protecting these assets entails ensuring that they are properly documented and legally secured.

The three systems assets are:

Marketing and Sales Systems: Use encryption and cybersecurity protocols to safeguard customer data held in marketing systems. Drafting user agreements and internal regulations reduces any legal liabilities (provided qualified legal experts do it).
Management and Administrative Systems: To avoid contract violations, study the licensing agreements for automation technologies carefully. Backup and disaster recovery procedures are also needed to protect vital administrative systems.
Operations Systems: Standard operating procedures (SOPs) should be thorough, reviewed regularly, and available only to authorized individuals. Supply chain agreements should include terms that address delays or quality issues.

Product Assets

Product assets set a business apart from its competition. Legal protection keeps these assets exclusive and valuable.

Gifts: Free resources or promotional products must conform to consumer protection regulations. When distributing these items, please attach terms of use or disclaimers.
Product for Prospects (P4P): Privacy policies and secure data-gathering procedures safeguard user information obtained during trials or promotions.
Core Product: File patent applications promptly to avoid disputes. Clear product descriptions in marketing materials reduce customer confusion and potential claims.
Products for Clients (P4C): To retain trust and avoid legal complications, service agreements must include subscription terms, cancelation policies, and dispute resolution procedures.

Market Assets

Market assets enable organizations to communicate with their target audience efficiently. Protecting these assets ensures you can access valuable channels and data as needed.

The three market assets in the framework are:

Position: Closely monitor when trademarks are set to expire so you can be ahead of the game in renewing them and ensuring exclusivity. Legal teams might watch for infringements to defend a company’s market position.
Channels: Are domain names, social media accounts, and other digital platforms correctly registered? If not, this needs to be addressed right away. Vendor agreements should include provisions that govern access continuity.
Data: Enforce strict compliance with data protection laws such as GDPR. Regularly updating privacy policies and training employees on data handling minimizes the likelihood of breaches.

Brand Assets

A strong brand inspires loyalty and trust. Legal measures help businesses retain their reputation and prevent abuse.

The three brand assets are as follows:

Philosophy: Trademark slogans and taglines that reflect a company’s mission. Include these aspects in contracts with marketing partners so they are consistent.
Identity: Registering a trademark protects visual branding, such as logos and designs. Regularly examine brand rules to make sure they are followed consistently across all platforms.
Ambassadors: Create agreements with ambassadors or influencers that explicitly define expectations, obligations, and repercussions for noncompliance with the brand’s principles.

To learn more about protecting your business brand assets, visit this article next: Top 10 Legal Mistakes That Can Derail Your Business Branding.

Intellectual Property (IP) Assets

Intellectual property assets are often the cornerstone of a business’s value. Proper legal protection ensures that these assets remain defensible and profitable.

Content: Regularly audit copyrighted materials to confirm ownership and proper usage. Clearly outline usage terms in licensing agreements.
Methodology: Protect proprietary methods through trade secret policies, confidentiality agreements, and legal documentation. Team members must understand the importance of safeguarding these processes—conduct training and other education to make sure they do.
Registered IP: Patents, trademarks, and copyrights must be monitored to prevent expiration. Legal teams can also handle infringement cases promptly to maintain exclusivity.

We have an entire article about the power of IP law here.

Practical Legal Tips for the 24 Assets Framework

Contiguglia Law Firm in Denver offers comprehensive business risk management consulting services.

Whether we are drafting strong contracts, securing intellectual property rights, or ensuring compliance with regulatory frameworks, our team is dedicated to protecting your business assets.

Developing a thorough risk management plan allows the businesses we work with to focus on growth, knowing their assets are secure.