Businesses use tools and equipment to carry out all kinds of tasks. Of course, the kinds of tools needed will depend entirely on the kind of business we’re talking about. But it doesn’t matter whether your company is in construction or telesales, the need for buying or borrowing tools and equipment is always there. But which one of those two options should it be?
There are many factors that will have to come into play as you’re deciding which way forward is the best for you and your company. Money is one of the most obvious concerns that business owners have. But that should be approached from a long-term rather than a short-term perspective. However, if you get the short-term wrong, there won’t be a long-term. That’s just one example of how complicated this all can be.
To help you make your decision regarding whether to buy or borrow equipment for your company to use, here are some of the pros and cons of both options.
Buying resources for your company might seem like a modest aim, but is it that simple? Read on to find out.
When you buy your own things, they belong to your company and no one can take them away. That’s what many entrepreneurs see as being so important. In a way, it’s about self-sufficiency. It shows that you are not dependent on anyone else or any other companies. Instead, you’re able to fend for yourself and buy the things that you need to have. That’s not a small thing, and it can be useful when you’re trying to run a business.
The monetary cost of repeatedly hiring or leasing equipment from another company will stack up over time. Of course, it’s spread out, and we’ll talk more about that later. If you do decide to buy things for your business, they will be paid for once, and that’s where the obligation will end. It’s less messy and more straightforward than many of the alternative options.
If what matters most to you is knowing what’s yours and what’s not, and not having any messiness invade, then this could be the solution for you.
If you do choose to buy all of your own equipment and tools that you use to run your business, you will not be able to get the support that companies often provide. For example, if you hire an item, any fixes and repairs that need to be carried out will be handled by someone else. That’s obviously not going to be the case when you buy something once the warranty has run out. You’ll be left to deal with those kinds of things, as well as the expense associated with them, by yourself.
In the construction sector, a lot of the things you need are just very expensive indeed. This has always been the case and probably always will be. If you have to buy these certain things yourself, it could leave your company with no money to do anything else. This is something that doesn’t just apply to the construction industry either. There are many companies out there with high startup costs, making it hard for entrepreneurs to get started.
Buying expensive things for your business can seem a good idea at the time. But when your business is later struggling for money, it might not look so wise.
Hiring, Borrowing & Leasing
When you can’t afford to buy (or simply don’t want to), you can hire, lease and borrow tools and equipment instead. Let’s look at this option in more depth.
When you hire from a company, you can pay only for the item for the period of time that you’re using it. This can be much more sensible, and a hell of a lot more affordable for the company as well. Tip truck hire companies allow you to get a tip truck for a particular project. So, you might only be using it for a couple of weeks out of the year. Therefore, why buy an expensive vehicle for one function that might come around again. That would be a pure waste of money for the company.
If you choose a good company, they will make sure that you receive equipment that has been properly tuned and maintained. This means that you won’t have to worry so much about things breaking down on you and causing you problems. And if you do experience a problem, it should be rapidly fixed by the company that you hired the equipment from. It means you won’t find yourself in hot water.
Hiring equipment or leasing offers more flexibility all-round, and when you’re trying to run your company in an efficient way, that can be really important.
There are, of course, some negative things to think about when it comes to hiring equipment too, though. Not everything is really easy and straightforward, as much as we might wish it was. You could be hit by hidden fees and charges if you don’t read the small print. Of course, not every company will try to catch you out in this way, but some of them certainly will. It’s something that you will need to be alert to if you’re going to avoid it.
You will also have a time limit and possibly usage constraints when you use equipment that doesn’t technically belong to you. It can add more pressure to your job when you’re using that equipment. It’s something that might not be a problem for everyone, but it’s still worth giving some thought to. The equipment won’t be yours, so you won’t be able to use it how you please in every instance. You’ll need to be careful and considerate.
There is no easy answer to this problem. There are reasons to borrow and there are reasons to buy. It’s a dilemma that many businesses have to contend with each year, but what’s most important is that you approach the problem with the right knowledge. That’s what the information above will have helped you with.