7 Things to Consider Before Buying Equipment for Your Small Business
If your employees are the heart and soul of your business, the equipment and tools you utilize are its hands and feet. That is to say, a company cannot operate without the proper machines and gear in place to help get the job done. Considering how vital this aspect of your business is, then, it can become overwhelming to try and understand what you truly need to purchase. With a little advanced planning, though, you will be well on your way to buying the best tools to help your business be the best it can be.
1. Is This Future-Proof?
A particular machine may seem like a great deal in the present until it’s obsolete in a year or two. Whether it becomes obsolete due to changes in your business or the technology integrated within the machine simply can’t keep up, wasting your money like this could put you at a major disadvantage down the road.
It’s important, then, to take a look at the latest and greatest machines, noting the features they offer and how those features improve productivity. Then when you go to purchase gear for yourself, you’ll be able to spot the features you really need and get a great deal on the machine that offers those features.
2. Can I Train Others How to Use This?
Even experienced operators can sometimes be overwhelmed by a new piece of machinery. That’s why it’s so important to consider whether you and your team will be able to quickly learn a particular machine or equipment and be able to use it optimally. If you have trouble understanding it yourself, there’s very little chance that you will be able to demonstrate it to someone else. Even if it’s the best machine for the money, you may want to consider another model if it will only result in frustration and lost productivity.
3. Is it an Energy Hog?
As a small business owner, you know the importance of keeping your costs low, including your utility costs. In many business settings, the machines at that business use a majority of the monthly energy, meaning that finding efficient machines is crucial to keeping costs down. In addition to saving you money, using energy-efficient equipment can help attract talent and customers who appreciate a company that strives to be environmentally friendly.
4. Am I Getting the Best Deal?
Commercial machinery sales is a competitive industry, with each company involved realizing the benefits of attracting a customer for life. With this in mind, it’s essential to shop around for new hardware for your business to ensure you’re receiving the best deal. It may be that your first offer turns out to be the best. However, it may be that, with two or three firm offers in hand, the next company you visit will offer a mind-blowing deal that you would never have expected.
5. Do I Really Need This?
One of the most basic things to consider before purchasing any new gear is also one of the most important. Asking yourself if you genuinely need a particular piece of gear isn’t a case of being over-cautious. Instead, it shows restraint and maturity on your part as a business owner.
It can be especially tempting to purchase something new when you hear about another company that is growing as a result of buying a particular piece of machinery. However, just because one company finds success with a specific strategy doesn’t guarantee success in your context. Make sure to consider your company’s situation in-depth before committing any money to a particular strategy.
6. Do Others Think This is a Good Idea?
While it may not be useful to imitate the decisions of other professionals simply to see if it works in your context, these fellow professionals can be a great resource if you consult them in the correct context. By bringing in one or more outsiders to assess your business’s needs, you will receive an objective, non-emotional opinion on whether or not a particular purchase is wise. While you know your business best, your emotional investment in the company can sometimes make it difficult to see a specific situation clearly, creating the need for some outside assistance.
7. How Will I Pay for This?
Every machinery purchase decision ultimately comes down to one thing: dollars and cents. Before signing on the dotted line, you must consider the best way to pay for a particular piece of hardware. If the machine is one that is expected to last a long time without becoming obsolete, buying it outright may make the most sense, as you will own the equipment and will be able to utilize it for its entire lifespan.
On the other hand, leasing or renting are great options if you expect the item to become obsolete soon or if you only need the machine for a limited amount of time. Either way, it’s essential to thoroughly look over your company’s financials before committing to any purchase.
Whether you own a hair salon, an advertising agency, a construction company, a restaurant, etc, that needs new appliances or heavy equipment. Gokapital can help you get the equipment NOW while preserving that much-needed working capital.