What is a tradie without tools or a fish and chip shop without a fryer? Essentially useless. No matter the industry you’re in, you’ll be using and relying on the tools of the trade. Whether it be technology, machinery or even nonelectrical, having access to the best and most effective equipment for the job will help the business prosper. Amongst the rush that is running your own business, unless employees are screaming at you for new equipment you may be missing the signs that are telling you it’s time to arrange equipment finance for an upgrade. Don’t dig your own grave, start considering your options!
How can you know?
You’re spending too much money on repairs
You don’t need us to tell you that it’s easy for a business to bleed money! Watch your expenses to see where those hard-earned dollars are going. The 50% rule is a guideline that can help you determine if it’s time to stop burning cash and replace a product. If you’re spending 50%+ of the cost of the item on repairs then you’re better off buying a new one and reaping the benefits of an updated version. Most equipment has a recommended lifespan so you may get to a point where repairs are futile and you’re just throwing money away fixing junk.
You’ve outgrown it
Congratulations! Your business is growing, but can it continue to grow if you’re using prehistoric equipment? You don’t want to be upgrading to a product that is too complex for your needs but you also don’t want to be held back. Think about what aspects of change you think would bring benefits to the business and ask your employees what they need to help the business prosper, after all, they’re the ones using most of the equipment.
Efficiency could do with an increase
Is workflow moving at a snail’s pace? Ask yourself how effectively would the day to day tasks be running with new equipment? The last thing you want to be doing is losing money on costs associated with prolonged tasks simply because the equipment doesn’t allow for time efficiency. Not only will new assets increase performance but modern equipment boasts improved energy efficiency, lowering your electricity bills. Maximise your productivity and minimise unnecessary costs!
You want to get ahead of your competitors
Your business will always be viewed in competition with its competitors. Potential clients aren’t silly. If someone comes across your company there’s a good chance they’ve done their research into what you offer versus your competitors. Guarantee them that you’re an industry leader by investing in the best equipment. Show them that you can work quickly, to high demand and provide superior outcomes, that your competitors can’t.
Armed with this information there is one more question to ask yourself; To upgrade or not to upgrade? Talk to your loan broker for advice in making a decision that supports your prosperity or to arrange finances to get the job done. SFE Loans offers equipment and asset finance solutions that can help guarantee success without the headache.
If you’d like to learn more about business loans or simply have a question, get in contact with us.