The decision to go into business can be overwhelming at times. There’s the question of capital, the sales potential of the product or service you want to offer and finding the right location for your office space. Past these three major considerations, you also have to think about building a team, salaries and benefits of your workers and the equipment you will need in the office.
The latter is especially important because, without the proper tools and equipment, you won’t be able to operate your business smoothly. Thus, the question becomes, should you buy or lease your office equipment? Many factors could influence that decision, of course, but here are the most critical aspects.
How Crucial is it to Your Business?
This is perhaps the most important question you need to ask yourself before deciding whether you should buy or lease office equipment. If the equipment in question is the very lifeblood of the company, then the price should have been factored in when you were tallying up your initial investments.
For example, you can’t very well have a food business if you don’t have enough kitchen tools. Since you know you’ll be using these things all the time, it would be wiser to invest in high-quality materials at the onset.
On the other hand, even though adding a car plan to your benefits package could attract better hires, forego with it if it’s not essential to your company making a profit. Offer a long-term car rental plan instead. That way, you save money and still recruit top-notch candidates.
How Much Will it Cost Me?
Price point matters. But in terms of office equipment, it’s not just the value you get now that matters; what’s more important is the value it will give you in years to come. Let’s take a look at tech gadgets as an example.
Technology is one of those things that constantly change. The latest innovation seems to always be just around the corner. Telehealth or telemedicine, for example, used to be conducted over the phone. An old-school landline telephone would have been enough. Nowadays, with the advent of video calls, doctors can give better diagnosis and treatments as they can physically examine patients, albeit virtually.
What can we learn from this? The question of what kind of value a piece of equipment can bring for you lies in its longevity of use. Think about how long you think you’ll be able to get some use out of the office equipment, and then decide. Leasing or renting it now could save you money, but will it still be the case five years down the road?
How Big is Your Workforce?
Apart from whether your tech equipment is still relevant to use in this market, you should consider the number of people you wish to employ. Every full-time employee would need to be provided with a PC or laptop, for example. If you have client-facing workers, they might need other things as well, such as a company phone or a company car.
The general rule of thumb is that the smaller the workforce, the more prudent it is to buy the equipment. If you expect your workforce to fluctuate as the years go on, it might be better for you to lease your equipment. It will save on costs, and you can always adjust the number of items you need based on how many employees you have.