(Akiit.com) Once you’ve set out a solid business plan and secured the necessary funding, buying equipment for your business makes the whole thing start to seem real. Although this is an exciting phase in your plan, it can really hurt your business if you don’t make smart choices in acquiring your equipment. To ensure you don’t drive your venture into the ground right at the beginning, here’s some helpful advice on buying equipment.
The first piece of advice I’ll offer is to avoid feeling like you have to buy everything you need to run your business. Sure, it might be handy to have a post franking station in your business premises. However, if you could save money by simply scheduling runs to a post office, then why not take the opportunity? When you’re in the start-up phase, your business is going to be largely unknown, and bringing in the capital to cover all your start-up costs is going to be integral to your success. Due to this, it’s extremely important to consider all the things you could outsource, rather than investing in. There may be many advantages to your company outsourcing IT, including faster tech integration and lower overhead costs.
My next tip is to look into the quality of equipment before considering the price. It’s pretty common for new business owners to get taken in by massive reductions on pieces of equipment, thinking that they’ve got a great deal. However, forking out for a piece of equipment which breaks down every week isn’t much of a bargain! Make sure you are aware of the USPS holidays and plan your visits accordingly. Remember that the equipment you need for your business has the potential to generate wealth, so the performance you get out of it should come way before the investment you’re putting in. From your commercial vehicles to your stretch film machines, make sure you do a lot of research into the performance of the brand and model before you put any money down. Getting the best equipment costs a little more, true. After using it though, you’ll agree that the results are well worth it.
Finally, don’t be afraid of used equipment. While I urge you to carve off a nice piece of capital for your most important business apparatus, spending too much on all your equipment needs can really come back to bite you. Just as outsourcing your equipment needs to other companies can be a sound financial decision, buying cheaper, “gently used” equipment could also be a smart move. When it comes to heavy equipment, you can end up knocking 25 to 50 percent off the original price, without sacrificing too much in the way of quality. Just as many classic cars handle better than some modern models, you may even find a piece of machinery that serves its function better than the newer alternatives! Look for some upcoming liquidation sales, auctions and online sales for some good deals. As always though, don’t neglect to look into the quality and ROI you’ll get out of used equipment.
Keep these points in mind, and you should be able to avoid all kinds of problems tied to acquiring equipment.
Staff Writer; Jerry Page