It’s the age old question, should you rent or buy equipment in your business? On the one hand, leasing can save you money in the short term. But in the long run, it could cost a lot more. There are a number of different factors that can impact this decision but before we look at these let’s assess the overall advantages and disadvantages of each option. We’ll start with leasing.
The Pros For Leasing Your Business Equipment
By leasing your equipment, you can keep your business up to date, efficient, modern and fresh. Since you haven’t committed to a purchase, you can update whenever you like. Think of this as getting a phone on a contract rather than buying one outright. On a contract, you can get a new phone once the contract expires and stay up to date with this tech. The same is true leasing equipment. Once the lease agreement expires, you can check the market to see if there’s any upgraded equipment that could be beneficial to your business.
No Charge At First
Since you’re leasing, you can avoid those heavy fixed costs of buying the equipment from day one. Let’s say that you’re using a cloud server. If you buy your own cloud server, you could be looking at thousands for installation charges alone. By leasing, you’ll only be paying around fifty dollars each month to use a server that is already set up and operational.
Go Beyond Your Means
Don’t forget, by leasing technology, you will be able to access more expensive, arguably unaffordable options. For instance, automated software is slowly trickling into every business industry, but it’s not cheap. Leasing out this tech., you can give you the upper hand over your competition without costing your company a fortune.
The Cons For Leasing
Unfortunately, leasing does tend to mean you pay more in the long run. Depending on how long you use the tech for, you could end up paying thousands for that cloud server, but it will be spread out over a longer period. You might not notice the expense, but it will be there, dragging your business down.
You might also find yourself paying for equipment that you no longer need. If your business model is flexible, it’s possible that you’ll reach the point where you no longer need the equipment you’ve leased out. But you’ll still have to keep paying for it until the lease ends.
Don’t forget, you’re also not getting any fixed advantage from the equipment. You don’t own it, so you won’t be able to sell it on and make some of the money back that you spent once you’re finished using it.
The Pros For Buying Your Business Equipment
Simple As Can Be
Buying is easy. Once you decide what equipment you want you find the supplier selling it at the right price and arrange an order. Leasing is a tad more complicated with paperwork that you need fill out and then there are the lease agreements. You’ll need to decide how long you can use it for, how you can use it and a variety of other factors that often come into play with these contracts.
Since you own the tech or equipment you’re going to be using, you can do whatever you want with it. You’ll also find that repairs are a lot easier because you won’t have to worry about waiting for the leasing company to fix it for you. Instead, you can get your business back on track as soon as possible if the equipment does break down and avoid downtime.
Since you own it, you can add your purchases to tax deductions. These can make those heavy costs we mentioned a lot easier and ensure buying equipment doesn’t drain your accounts completely.
The Cons For Buying Your Business Equipment
The disadvantages really do depend on the type of equipment we’re talking about here. For instance, there’s the cost. The cost of buying business equipment can be expensive, but it depends on how long you’re planning to use it for. If you know it’s going to be part of your business model for a few years it might be worth the high first fixed costs. But, it could still mean you need to take out an expensive loan, and that could play havoc with your credit rating.
Then there’s the issue with depreciation and outdated equipment. Certain pieces of equipment are going to depreciate faster than others. For instance, computers will lose nearly 25 percent of their value after the first year. That also means that you could be stuck using outdated equipment that cost a fortune in a couple years of time.
For this reason, there are a number of questions you need to ask yourself before making this decision.
What Are The Tax Benefits?
We have already discussed the tax benefits of making deductions on any equipment that you buy. But there are also tax deductions available for leasing. For instance, you can may able to put the entire first cost as a deduction when leasing equipment. But, it does depend on the specific equipment and the lease in question. As such, you will need to investigate this carefully.
How Often Does The Tech Change?
In the computer world, tech changes every month, but in the agricultural industry, it can take years for tech to advance. As such, in the IT industry, it might be beneficial to lease equipment and keep up to date with changes. While for agricultural companies, a long-term investment could be the best decision and that’s just one example.
What Can You Afford?
On top of this, you need to consider what is the more affordable option for your business. It’s possible that you have the money in your accounts to buy the expensive equipment. Or, you could have the credit rating to easily handle a loan. On the other hand, you might not be in a strong financial position and if that’s the case leasing is always going to be the best possibility.
Which Is Best?
Ultimately, you will need to take all these factors into consideration when choosing whether to lease or buy. Think about how quickly technology changes, how much it will cost and the other benefits that leasing or buying could bring for your business. What you don’t want to do is make a bad business decision with your liabilities especially if your business is in it’s infancy.
Is Work-Life Balance Making Us Less Productive and Lazy?
Striking the right ‘work-life’ balance is still the talk of the town among workers of all ages and experience.
Job seekers, are no longer afraid to mention they have a home life, and that they won’t be married to the job.
Also there’s the realities of harmful stress on health and relationships, it has been a reality check for many of us over the years and now we value more freedom and flexibility often more than our pay packet.
Businesses have been slow on the uptake however that is changing albeit not through altruism but from it’s huge cost savings in operations including less office space and technology required.
Startups can engage staff where they reside not necessarily where the business is located. Still there remains some doubt as to it’s real value to economy.
Are we losing overall productivity? Is flexi-time, more holidays and remote working making us lazy? If you don’t have to go into the office why would you and is this affecting team relationships and the sharing of information?
There are so many questions and no right or wrong answer.
Why is it still a thing some 40 years on? To find out we need to look at some of it’s drivers; namely technology and women. The work-life conflict was first mentioned by workers in the UK in late 1970s and a few years later in the US and here we are today nearly 40 years later still flying it’s flag, women probably more so than men.
Positive female role models and more women in the workforce, has kept the movement alive and well and some might argue it has been the driving influence of better employment terms, and pay. Only recently it was reported Canadian women are investing almost as much as men in the market now and that’s due to the shrinking wage gap, and lower unemployment, among other factors.
The use of systems that allow workers to be monitored while working remotely, has given the power back to the Business. Not only can they keep tabs on their workers and their productivity via software like online chat they can grab the huge savings less office space and services allows.
Hot desks are now the norm in corporate offices. Plus companies can also get away with providing less technology too. Hardware like desktops are less in demand now as workers can use their own computers.
Workers in many industries are now encouraged to use their own hardware and software. This means some may use Apple while others use Microsoft and then there’s also the array of smart devices in use too.
BYODs (bring your own devices) can be secure in the workplace with firewalls and other security systems. They access company systems and software as well as their own personal assets. This technology leap is a big win-win for both the user and the business.
The way we work is forever evolving and technology means we are more connected now than ever before.
Reading emails and texts in the evening or first thing in the morning and on weekends suggests we are probably working more, and we’re more productive with our time now than previously.
What we do know is nothing stands still. Change is inevitable, especially in business, and with technology. Soon everything will be using AI, so you can be sure there’s a lot more transformation in the way we work and where we do it just around the corner.
Work Times Are Changing For The Better
Leaders in business have always had more leeway with their working hours. They have never been restrained by the standard business hours most of us are contracted to do every week. You know what I’m referring to, most ‘wage-slaves’ i.e. employees, need to work Monday to Friday between 8am and 6 pm, for 40 hours a week.
Flexi time for workers has crept in, in many industries, over the years, particularly with startups and more forward-thinking organisations keen to get the work-life balance right. Remote working has been popular with these businesses, but any change to the norm has been slow progress particularly with the mainstream majority. Let’s take a quick look at the adoption curve which explains uptake trends.
The early and late majority is the big peak in the ‘rate of adoption’ curve aka diffusions of innovation. This curve presents the way innovation (particularly in technology) is adopted by us – human kind and the curve is an illustration we can view and instantly comprehend.
Work times are changing but arguably it’s yet to become the norm with the ‘majority’, (the peak in the curve). There is some way to go before we see real change the times we work and for it to be part of our employment agreements.
Slow on the uptake
Business owners and their management have not been quick off the mark with remote working or flex time and there’s a perfectly valid reason for their reluctance.
Trust and accountability
A lack of trust and the ability to keep a watchful eye on staff, when they’re not in the office, is the main reason for the slow uptake of more flexible working hours and working away from the office.
Leaders are inherently naturally driven and motivated to put in the hours due to their status within the business, therefore working from their home or holiday is not a constant distraction. Their staff are likely to take more liberty with their new work environment and a lack of personal oversight has deterred many businesses to the leap of faith until now.
Technology is the game changer and it is empowering businesses, like never before. There are many tools like chat Apps, readily available to assist both staff and management’s trust issues.
Staff can be hired in different locations and remote workers can be part of team meetings via conference calls. Plus there’s the use chat bot software so the power and control is there for the business to watch over their staff.
The natural progression of work is more flexible work times, as jobs also change. The earlier risers can get their work done when they’re most productive, in much the same way as the night owls among us can log on and be equally as productive during the dark hours of the day. Rising early though has gotten a lot of attention lately.
Just look at the rising times of some well known Entrepreneurs. BBC has recently done a story on the unorthodox waking hours of successful business owners, celebrities and famous people and questioned if rising early meant more success.
Apple’s CEO Tim Cook is up at 03.45am and Actor, Entrepreneur, Mark Wahlberg really uses the 24 hours in day to work for him. Rising at 02.30am and going to bed at 7.30 pm.
No longer does it need to be daylight before we rise and get to work and it’s likely this way of living where we elect when we work during 24 hours of the day, will extend to the rest of us non super stars, as evidence suggests, when productivity goes up so to does the revenue and profit.
So as for the early bird does get the worm idiom, yes it’s real but for everyone and that’s why work times are changing as businesses need to be more competitive. The desire to make more money will keep pushing the envelope in all areas of business and with the enabler of technology to track and measure us, it won’t be long before there’s no such thing as standard work times.
Giving Your Travel Business An Edge Through A Call Handling Service
It is clear that the telephone plays a vital role in the day-to-day running of businesses, especially for a travel agency. With the development of digital technology, the telephone can now be carried by anyone in the form of a small hand-held device wherein you can call, chat or video chat with someone located on the other side of the world in real time, and seek and find information on just about anything through the internet, all at the touch of a button or a click of the mouse. This technological breakthrough has made being connected not only easy and convenient but also a must. But what happens when the calls continue to come even after work hours and even during holidays?
If you take a close look at a business such as a travel agency, this is exactly the type of organisation that can really benefit from a call handling service.
The primary role of a travel agency is to make airline ticket bookings, which is a role that a virtual receptionist can carry out from a remote location. Remote bookings are now made easier because of the Internet. The digital platform provided by the Internet makes it possible for a professional receptionist who is remotely located to book flights for clients. Because all travel businesses have to use a cloud-based online booking system, the call centre can easily access this, allowing the receptionist to have up-to-date information on bookings.
By having someone to answer phones for the travel business round-the-clock, none of its clients are left ignored. With just a call at any time of night or day, clients will be confident that a travel business personnel will always be around to book their flights once they decide on the schedule.
When you’re running your business remotely a virtual receptionist service can made a fundamental difference to your customer service.
A virtual receptionist would be able to answer queries about flight availability or enquiries on working out a connection to somewhere on the other side of the world, just as anyone would if they were actually in the travel agency office. This is a skilled job for anyone, yet it does not mean that the person must be located within the premises. In fact, many travel agents use call handling services as this is the most cost-effective way to offer a professional service to their clients.
While some travellers like to book their flight and accommodation separately, there are many who take advantage of the package tours on offer and by using a virtual receptionist who is fully-briefed on all available packages, they can make bookings on your behalf and the customer would assume the receptionist is located at the agency premises.
Holiday season and other festivals are definitely busy periods for travel agencies and if your receptionist is stretched at this time, why not let a call handling provider deal with any extra calls? We all want to get away in the winter months and during the peak holiday season, you can use a call handling service and when things get quiet down again, you can put a hold on the service.
Even people who work in the holiday industry need a holiday sometimes and losing your receptionist for a couple of weeks could really put a spanner in the works. With an established call handling company at your beck and call, you are always assured that your customers will be greeted professionally and your business will not suffer.
If your main goal is to ensure that questions and requests by clients are paid enough attention, then hiring a virtual receptionist will be beneficial for you. A virtual receptionist is trained to handle calls courteously and professionally, so you are rest assured your clients are talking with well-trained people round-the-clock.
With the top-notch quality of service virtual receptionists are giving your clients, you can increase your profit while saving on labour costs. Satisfied clients can bring in new clients through word of mouth. Plus, calls by those who are only available after work hours are also paid attention to.
Unlike in-house receptionists, virtual receptionists are paid only with the service they provide and once they provide it. They can answer large volumes of calls with unwavering amount of attention to every call.
If you run a travel agency, talk to an established call handling provider and they are sure to have a package that is ideal for your business, and if used as a back up to your directly employed staff, this service is an essential requirement for all businesses.
- Management2 years ago
20 Of The Worst Business Decisions Ever Made
- Finance2 years ago
What are the Advantages And Disadvantages of Business Loans?
- Mindset5 months ago
5 Positive Impacts of Green Businesses On Employees’ Wellbeing and Performance
- Finance1 year ago
M&A How Industry Leaders Structure Their Deals – Fee Guide 2017
- Marketing12 months ago
Creating Brand Identity for Small Business [Infographic]
- Marketing2 years ago
What You Can Learn From Amazon’s Marketing Strategy
- Finance1 year ago
Blockchain & Cryptocurrencies What’s All the Fuss About
- IT Security2 years ago
Do I Need To Be PCI Compliant?