It’s an exciting time. Starting up a new business, finding the perfect location for a home office, and buying equipment are just a few of the to do items on an already overwhelming list. However, before diving into any hard-earned capital to pay for equipment, consider the following.
Identify Needs Versus Wants
Although tempting to have an automatic latte machine in the breakroom, ask the question, “Is this item absolutely necessary for the day to day functioning of the business?” If the answer is no, then put that item in a wish list to buy after all of the necessary items have been purchased.
Leasing Versus Buying
It may actually be less expensive to lease a piece of equipment over buying it. If the business uses a copier on a regular basis, leasing one that comes with a technician who will service the machine may be less expensive than buying a new copier every few years.
On the flip side, new equipment has tax advantages in the form of depreciation, which can lower the overall taxes paid at the end of the year. Crunch some numbers before deciding on buying or leasing an expensive piece of equipment.
Consider the Space
When looking for the perfect piece of equipment to place in a new space, be sure that the item will fit and not overcrowd the space. A workspace with room to move around reduces stress and increases productivity over one stuffed with equipment like bulky computers and desks that are too big.
Go Bargain Shopping
A new piece of equipment doesn’t necessarily mean showroom new. Consider buying gently used items that can save up to 50 percent of the original price. Check auctions, online sites, liquidation sales, and even garage sales to save a large part of the budget.
Choose Quality Over Quantity
Although tempting to purchase equipment at a bargain, if the offer seems too good to be true, it probably is. Carefully research an item before committing to buying. Focus on the quality and value, not just a great buy. In addition, check the manufacturer. If there are parts needed to fix this great buy, will they take weeks to get to your location? If so, that great bargain just became a great headache.
Spend Money Where It Is Needed
Although more expensive in the beginning, spending a little extra on critical items can help avoid potential problems down the road. For vital items, don’t just jump at the lowest price model. Instead, really study the options. It may be worth the extra cost upfront to buy a piece of equipment that will be used for essential business operations on a day to day basis.