The use of capital for buying business equipment is an essential and stressful task. You have to invest in assets even before the first from the money you saved for years. This is where the entrepreneurial skills are tested for every new owner looking to enhance a small business.
There are lenders ready to give you guaranteed loans for the procurement of equipment. But you should spend money wisely for the purpose.
Apart from the limited money to spend, there are other factors as well that needs to weigh in, including quality and quantity. Here is the road map you need to make sure you have the right equipment within the budget.
Create a List of Products for Your Small Business
A shopping list is a prominent part of going out for buying products. But the way you make it ultimately determine the total cost.
- Start with categorizing products between wants and needs. This list should be updated with time keeping in mind the business growth.
- The items on the “needs” column should be bought first.
- You can purchase other things based on the money left or the performance of the business.
Make sure the list agrees with the business plan you have made.
Consider Outsourcing Tasks
While the smart solution to a majority of the operation is to handle them yourself, outsourcing can be more feasible in some situations.
- From small expenses such as posts to bigger ones like delivery can be outsourced to save money on equipment.
- You need to recheck the “needs” column for items that are more feasible to contract-out.
Blueprint for Space
The office space is an important constraint when it comes to deciding the equipment. There is no point in buying something you cannot place inside the office. This is true for every type of business, from restaurant to small media house.
The coffee bean grinder or the copier in the office space can be too big to be installed.
- Draw the complete layout of the setup before finalizing items in the list.
- Make sure the blueprint in detailed, with every small piece of equipment allocated in it.
- To make it more precise, measure the office area carefully.
This whole step will narrow down the required items to a great extent. Ultimately, saving you a lot of money.
Purchase Used Equipment
Your limited budget may not allow you to buy the new item from the market, however tempting they look. The used equipment is a great way of saving on the capital while purchasing what is required.
All you need is enough knowledge of the equipment and good bargaining skills. While not everyone can have the skills to bargain with the seller, knowledge can be gained with a little research on the internet.
You can get a used item as low as 50% to the actual cost, even more in some cases.
- There are chances you may end up with a superior quality product than you thought of purchasing.
- There are numerous ways you can get your hands on used items sale.
- Try online sites, auctions, and garage sales to find the best deals.
Quality VS Price
The cheap equipment can cost you more on repair and maintenance than an expensive quality-product. Quality is often not the only drawback with these products. They may not even serve the purpose they were bought for in some cases. Therefore,
- Your focus should be equally on quality as well as the price of the item.
- Take help from family or friends while deciding the right product.
- You can also search for different review sites for the comments from other buyers.
- Take good note on whether the equipment is serviceable nearby, or the replacements parts are available.
- Look for deals from different sellers while you are out shopping. You may get a quality product at a reasonable price after checking one or two marketplaces.
Make sure the product you are buying returns the value before making a significant investment in the quality.
Spend a Little More on Important Items
There is specific equipment that may serve a more critical purpose than others. The burner in your kitchen is more important than the prep-table. In this case, you can spend more on the former to get a better model. Same goes for the other businesses as well.
The idea here is to streamline the critical processes and increase productivity at extra cost.
- Mark the essential items in the list.
- Try to allocate a little more budget to them, if possible. This will help you serve your customer better and increase the chances of success.
- Even in the business setups relying heavily on the electronic equipment, you should buy the systems from established brands.
Rely on Flexible Source of Capital
Saving for the business is vital to reduce the liabilities while running it. But while shopping for the required equipment, you should always consider taking financial help. Lenders will offer you guaranteed loans with lower interest rates if you have all the documents ready. But make sure the loan amount is closest to the required sum.
In the Nutshell
To sum up, with proper planning you can go through the equipment-shopping for your small business without much trouble. However, you must not stay rigid on it since there may come a situation when you have to make changes to save money or procure better equipment.