Ever regret wasting company money on some fancy equipment? You are not alone. Many business owners have made purchasing mistakes that could have been avoided. Here are some steps you can take before you spend money that can help make sure the next piece of machinery you buy meets your company's needs -- and doesn't bust the budget.
Cut Costs and Taxes |
It's more common than you might think: a business owner buys "state-of-the-art" equipment only to discover that all those bells and whistles weren't necessary.
Others have invested in a bargain-priced business equipment that wound up being more trouble than it was worth. For example, a stripped-down photocopy machine that doesn't collate documents or an inexpensive fax machine that requires employees to hand-feed individual pages.
Purchasing mistakes like these are costly to a business and can even become embarrassing if they wind up causing more mistakes.
So to avoid this in the future, here's a basic plan for buying reasonably priced equipment and machinery that saves you money and meets your needs:
Compare specs and prices. Check with professional and industry associations to see if they conduct tests of business machines. Trade publications are another potentially valuable source of product reviews.
Ask for references. If you're making a significant investment, ask the manufacturer or distributor for references from other companies in your line of business. When contacting the references, inquire about the performance and reliability of the equipment and whether the supplier provides maintenance and repair services.
Buy it used. There are dealers who sell barely used office furniture and machines for a fraction of the original cost. Many of the castoffs came from companies that went out of business after a short time. Auctions provide exceptional opportunities too.
Keep taxes in mind.There are complex laws governing the tax deductions your company can claim for computers and other office equipment.
Consult with your financial advisor before buying expensive machinery to get the best results. If you do your homework, the right equipment choice will become obvious. If you're uncertain, postpone the purchase or consider leasing the equipment. When it comes to expensive office machines, you're better off sure than sorry.
