If your business needs equipment, then you have two main options:
- Hire it
- Buy it
Most companies look to buy as much equipment as possible as it means you have full ownership of it. It also means that you have the opportunity to sell it and get some money back if you no longer need it. There are plenty of advantages to buying your own equipment, but also some disadvantages.
Speaking of which, there are some instances where it makes far more sense to hire your business equipment. You might not own the piece of equipment, but it will be more cost-effective if you hire it in these scenarios:
You move around a lot
Does your business involve moving around all the time and working in different places? If so, then hiring your equipment is far more practical. Here, you simply hire what you need when you need it. Then, you move on to the next job and hire the equipment from a local supplier once more. It saves you from needing to pay to keep transporting items of equipment with you from place to place – especially if your work takes you across the country or overseas. This is also particularly effective if you’re dealing with big, heavy, pieces of equipment that are a pain to move around.
You don’t need the equipment all the time
If a piece of equipment isn’t essential, then there’s no point in buying it. This applies to anything you use that isn’t required for every job. Businesses in the construction industry will be most applicable to this scenario. As you can see on https://www.freogroup.com.au/, companies can hire things like mobile cranes and other large machinery/equipment. Your business may only need things like this for one out of every five construction jobs. Therefore, it’s pointless owning something you will barely use! The same goes for other businesses in various industries – consider how often you will need the equipment, and rent it if it isn’t part of your essential daily operations.
It’s incredibly expensive
Sometimes, your business needs equipment that is outrageously expensive. Paying the full price to own it would absolutely tear your finances apart. Remember, you have to think about the financial impact of buying things for your business. In this scenario, you’re way better off renting the piece of equipment. Yes, hiring means you pay every month or you pay whenever you need to use it. But, these payments will be tiny compared to the full cost of an expensive item. So, it’s easier for you to manage, and you can adjust your budget to accommodate these payments with ease. You get what you need, and your finances don’t suffer.
Evidently, buying business equipment isn’t always the best approach. Likewise, hiring equipment won’t always prove to be cost-effective! It’s all about learning how to find the right balance and use both approaches. In the above scenarios, you can certainly enjoy more benefits by hiring your business equipment instead of buying it.