Retool Your Business and Equip Yourself For Success
Everyone in business knows that you need good quality, reliable tools to deliver the best service to your clients. Unsuitable, poor quality, unreliable gear results in lost clients and lost income.
There is an old saying “the poor man pays twice”, so when we try to save costs by putting off decisions or going the cheap option, sometimes the outcome is not ideal and we spend more money to fix the problem or we lose business. Either way we end up ‘paying twice’ which comes out of profit and is not good business practice.
Is it time for a review?
Motor vehicles, software and machinery – the ‘gear’ a business needs to perform efficiently will vary by industry and location, but best practice in a well run business is a regular review of these needs.
The start of year can be an ideal time to do this, when targets and strategies are being set for the next 12 months, new work contracts are being established and some early tax planning is in progress.
An important factor in planning is making sure working capital is preserved – the engine room of any business. There is no sense in using all your cash to buy an asset, that has a long working life, if you are then left short of capital needed to pay business expenses, buy stock or pay wages.
What financing is available?
Facilities such as chattel mortgage, lease and rental provide a range of financing options that can be tailored to best suit the needs of the business. Strategies that can be considered include:
-Matching loan terms to the working life of the asset.
-Structuring payments to match cash flow including seasonal considerations
-Acquiring an asset to be used for a specific work contract with options at the end of the contract to buy or hand the asset back.
-Having the flexibility to upgrade an asset when your needs change.
Your finance broker should be an extension of your business and part of the team. Take the first step in making sure your business is well equipped to succeed in 2019, contact your broker today to review your financing needs for the year ahead.