Whether during establishment or expansion, purchasing equipment is a key step in moving a business forward. For many entrepreneurs, it’s also a stressful undertaking. Investing hard-earned capital into a fixed asset is indeed a risk – and the less informed you are, the truer the sentiment. Make the wrong decision and you can severely restrict growth.
The right purchase is the result of careful comparison shopping and thorough assessment of the equipment and its long-term value. Having come this far, you likely recognise the importance of this decision. To make things easier, consider the following 5 tips for getting the right equipment for your business.
Consider Your Needs
The last thing you want to do is make ad-hoc, isolated purchases. Instead, start by reviewing your production process before setting goals. Then, identify the equipment that will help you reach them and detail how. A good approach here is to create two lists; one with a rundown of what is essential for basic operations and another with ‘wish-list’ items.
Is your equipment of choice going to help you stay ahead of competitors? Will it increase quality or efficiency? Is it better to upgrade rather than buying new machinery? Perhaps it would be wise to hire a consultant during this stage. Once you have a clear idea of your needs and how your equipment will meet them, you can move forward.
Identify Outsourcing Opportunities
While one company is investing in an on-site postal franking machine, another is simply sending customers their mail through the post office. A potential addition to the previous step would be to consider the possibility of outsourcing the use of certain equipment, whether to save time, money or floor space.
Know Your Vendor
When it comes to choosing a vendor, you need to know how to separate the pros from the posers. Consider this supplier of automated capsule filling equipment. Their machines come with a one-year warranty, as well as a lifelong customer and technical support in addition to free training at their facility on how to use the equipment.
You need a vendor that will be there when something goes wrong. They should be able to promptly answer your calls and provide the information you need. If they can’t, you risk losing valuable time and money to dealing with an issue yourself or looking for someone else to do it.
Keep It Clean and Green
A safe and healthy work environment is paramount to business success. The same rings true for a workplace that is environmentally-conscious. Look for equipment that’s made with the wellbeing of your employees in mind. Moreover, its design should be as energy-efficient as possible, thus helping you save both the planet and your bottom line.
Finance First
For many business owners, the hesitation that prevents their purchase of equipment comes from financing concerns. Unfortunately, there’s no easy way out there. You need to compare your options and find the solution that best suits your budget. The key here is to do it before you reach the purchasing stage.
Having your financing in place early on puts you in a position of strength when negotiating with vendors. Financing your equipment externally can free up your cash flow, allowing you to handle the debt whenever there is surplus cash. Compare your options between institutions and remember to look beyond the interest rates.
Be sure to shop around and learn as much as possible about the equipment you need before pulling the trigger. Read online reviews, attend trade shows and avoid letting the price tag alone guide your purchase decisions. Keeping these rules in mind will go a long way in helping you get the right equipment for your business.
oil packaging facility -DepositPhotos
