A difficult early decision that new business owners have to make is whether to buy or lease the equipment they need.
Both options have their pros and cons, and sadly there is no one size fits all answer to which option is better.
With this in mind, here are 7 questions to ask yourself in order to determine which option suits your business best.
1) How much capital do I have?
This is the most important factor to consider when weighing up how to best finance new equipment.
Quite simply, if buying your desired equipment puts a significant dent in your overall business budget, then leasing is likely to be the better option.
But what is meant by a significant dent?
Well ask yourself this:
How far will the loss of capital incurred from buying the equipment outright lead to compromises in other areas of my business?
If you are in the early stages of developing your business, you want to be focussed on customer acquisition.
The foundations of customer acquisition are:
Providing an excellent customer experience;
Compromises to these three facets of your business should be avoided at all costs, especially while it is still in its infancy.