This Podcast Is Episode Number 498, And It's About The Solution To Your Construction Company Equipment Dilemma Is it time for your construction business to invest in some new equipment? And if so, is it a more brilliant business decision and cost-effective to rent or buy? Black Friday, followed by Cyber Monday, is coming. The real question is what equipment is on your business shopping list. It is all a question of your budget, income, cash flow, profit & loss, and taxes. Why you might need new equipment: The right equipment can enhance your processes, productivity, innovation capacity, and bottom line, but should you buy now or wait till a later date? A few reasons you might need to purchase new equipment now are because: - You have some big contracts coming up and need to increase production. - Your construction business is expanding at a fast rate. - You need to replace some aging equipment to maintain your business’s high standards and keep up with the competition. Evaluate your existing financial state It can be easy to get caught up in the growth of your business without putting the necessary time into assessing whether you’re financially ready to buy some more equipment. Try to look beyond your current situation to project your costs over the coming months or years (depending on whether you plan to hire or buy).  You can reduce the financial impact on your business by: Using financing to buy the equipment – you may even get lower rates than hiring the asset, and after you complete your payments, you’ll own it. Purchasing quality used equipment could be more cost-effective than renting over the long term. Examine your business as a whole Short-term purchases without long-term plans can be costly Consider these questions when drawing up plans to invest in more equipment: What effect will the new equipment have on your human resources? Will you need additional staff or relocate staff elsewhere throughout your business? Can the equipment you’re replacing be used elsewhere in your business? The length of the job or project A crucial deciding factor as to whether the right time to purchase more equipment is now is the length of an upcoming project (or the frequency of extra jobs coming up). Additional short-term work suggests hiring would be a better option. Likewise, if you need a highly specialized (and expensive) piece of equipment, it might be preferable to hire it. It makes more sense to buy for longer-term projects. Hire costs can add up quickly as a job gets delayed and pushes past its expected finish date. Usage and availability Knowing that the right equipment is available to your business whenever needed is a significant advantage. If anything unexpected happens with a job, you’ll have the necessary equipment to react and reschedule. Potential clients will also notice that you own the equipment necessary to complete their requests, helping develop trust with your business. When you decide whether to hire or buy, consider the risk of your preferred hire company not having the equipment you want when you need it. Deciding to hire or buy You can get the new equipment you need by renting (hiring) or buying. Each has advantages and disadvantages, so it’s worthwhile assessing your business’s current financial situation, its current capabilities, and its plans (for growth). Weigh up the pros If you choose to purchase new equipment, the advantages over hiring will include the following: Availability – you can be sure the equipment will be available when needed. Ownership – you own the equipment and can potentially get a return on it when you sell it. Additional financing – if using a loan to pay for your equipment, you might be able to get extra funding to cover transport, training, or installation. If you decide to rent the equipment, the pros include the following: Cost – smaller initial investment Maintenance – the lender, should handle insurance and maintenance. Technology...