No one gets the satisfaction of bossing you around for the whole office to see. But when it’s time to make a big decision for your business, this is where being an entrepreneur turns sour.
Automation equipment like a taping machine is a solid investment that will grow your business. But how will you find the right one that would lead you to success?
Here are 3 questions that you should answer before buying an equipment to expand your business. I’ve also added a couple of things you SHOULD know before taking home that new mechanical business ally.
Is it a need?
Performing a thorough assessment of your needs is a must before making any business decision. In this way, risks and investments done for your company are calculated well which can greatly reduce losses. Place your decisions in perspective wherein it will benefit most, if not all, of your stakeholders. It is best to take a look and consider the different aspects of your business to ensure the balance of your decision.
Who will fund the purchase?
Not all businesses have the loads of extra cash lying around to support expansion efforts. With that said, planning is a very important component in every purchase. If the purchase is not immediate, you can start setting aside a portion of your profits on a monthly basis until you are able to have enough funds for the purchase. For immediate funding needs, you may take out a loan from the bank, your family and friends or other financial institutions that are willing to do.
How will the new tool benefit my business?
Major decisions such as buying additional machines, raw materials and hiring employees have a considerable impact not only to you but also to your business as a whole. Make sure that you see a clear use for the machine that you intend to purchase and a direct positive impact that can bring to your current suppliers, employees and customers.
Expanding a business and its operations just because a competitor is doing so is not the smartest choice for any business owner.
BONUS TIP: What You Must Know
Before moving on with the purchase, it is very important for you to know and clearly understand the after-sales support that will be provided to you by the company. Do they have professionals that will guide you through the learning process or you’ll have to learn the machine’s workings on your own? Make sure that you are comfortable with the arrangement so that the purchase can be utilized well right from the beginning.
It is nothing but normal for machines to get broken or decline in performance after it has reached its peak. This is the reason why service and product warranty clauses are very important in every purchase. Knowing the extent of help the company can provide you in case the inevitable happens can contribute to your peace of mind.
