Buying new equipment for your business can be tricky. Tricky due to the fact that it can affect the business’ main cash flow, because it is essentially turning your business cash assets into something that is a fixed-asset that actually deteriorates in price.
As a business owner, you must be able to consider a lot of things when buying new equipment for your business. Here are seven tips to consider:
TIP #1: Have a List
It is actually easy to get lost and drown in all of the choices available to you as a buyer, and in order to be smart as a business owner, a list should always be part of your business plan, one that continuously updates and grows along with the business needs.
Your list should have two columns: the first having all of the necessary and essential equipment the business needs, and the second having all of the “wish list” that the business would like to splurge on when it has the budget to.
TIP #2: Outsource on the things you can
There are a lot of things that your business can outsource instead of buying equipment for it. Make sure that your business outsources what it can in order to make sure that the budget would go into equipment that is essential for the business.
TIP #3: Get the exact measurements: Draw
Make a drawing of your establishment where you would like your equipment to be or where it would go. You might think that the espresso machine with all of the current fix ins and accessories is the one, until you find out it’s too big for your cafè counter! If you have the drawing to check out the measurements, then you would not have a hard time to say an automatic and resounding NO.
TIP #4: Brand New or Second hand?
This is an important question business owners need to ponder over. There are several pros and cons when buying both Brand New or Second-Hand equipment.
The important part here is to measure and decide whether or not it would need the equipment for the whole duration of its lifetime or not.
TIP #5: Always choose quality over price
It is always a good deal when it comes to cheap equipment, but always look at things in the long run, quality is always the number one thing to remember. You would want the equipment to last long rather than buying a newer equipment every now and then.
TIP #6: Don’t scrimp on your most needed equipment
When you have a budget, and you need the equipment you are buying to fit, make sure that for the equipment that your business needs the most, you do not scrimp on. Your business deserves the best, and for the business to do its best, high-quality equipment would be needed for things to be at a 100 percent.
TIP #7: An additional, flexible, and quick source of funds
The best answer? Business loans. There are several business loans available today that are equipment purchasing focused. Make sure that you are getting the most out of your business loan by ensuring that the business loan actually fits the business, from its repayment schedule to just how much the loan will be able to give the business, and to the interest rate that applies to the loan.
Additional sources of funds are needed due to the fact that you cannot and should not deplete your business capital just on equipment. It would need to be flexible in order to ensure that you can purchase other equipment that may pop up that the business would need, and finally quick, as equipment sometimes comes and goes in an instant.