Whether your company is in construction, scaffolding, or engineering, machinery is a key but expensive part of daily business. For a new or small business, purchasing machinery can make a huge financial dent that can be difficult to justify. Of course, there is the option of hiring equipment, such as band saws or drilling machines, but the rates can soon mount up leading to huge costs that will be incurred with every new project or production.
Buying machinery means your business will have to find the money to pay upfront although you will quickly reap the financial benefits. Investing in machinery means you will have to make a substantial one off payment, rather than hiring as the cash flows in, but the overall cost is considerably lower. Your business will no longer be providing a hire company with the profits you glean from every project. Instead you can reinvest your capital to increase and train your workforce, or expand the company. More importantly, you will own the machinery that is essential to your business, meaning you can manufacture all year round without negotiating hire. Owning more equipment will also allow your business to grow, take on larger projects and work to a tighter timescale.
If you are starting out, it makes sense to hire equipment until you have a good reputation, strong business links, and the needed injection of cash required for purchase. Initially to allow your business to grow, you will have to reinvest capital. Purchasing machinery means you will be preparing for and investing in your company’s future. In many cases, this kind of business expense is also tax deductible and may provide your company with benefits in the form of tax relief. You can talk to an accountant or research online to find out about tax breaks that apply to businesses in the UK.
Furthermore, purchasing machinery may be less expensive than you would initially think. While there are many companies selling brand new, up-to-date technology, companies such as Clarence Jones also specialize in selling used equipment. This will allow your business to become independent and grow sooner than you may have anticipated. In addition, they also buy used machinery. Therefore at a later stage, you can sell old equipment and use the money to reinvest in new machinery. Do bear in mind that if you choose to buy used machinery, you will have to pay for repairs or maintenance work.
Investing in machinery allows you to build your company and prepare for the future. Hiring equipment long term is not a viable option as costs soon mount up. Reinvest your capital by purchasing machinery to allow your business to work to shorter deadlines, take on larger projects, and increase the scale of operation.