When to invest in new equipment for your business

Business owners are held up to a high standard: even with family-owned businesses, everything is meant to look professional and in tip-top shape. Lacking the right tools for the job is not an image you want to have, no matter how skilled you might be.

Using old equipment to do your work is great – until it’s not. Very few business owners look forward to ‘upgrading’, as industrial-grade equipment and machinery is expensive enough to empty your savings account and even force you into debt. To help you decide whether you need to invest in some new equipment, here are some good scenarios in which you might want to do so.

Invest in new equipment

  • There’s a new competitor around the block, and his guns are bigger. This makes for a fairly expected first reason, although it’s not one you’ll have to worry about too often – as an ‘older’ business, you’ll enjoy more reputation and customer trust and it will be hard for newer businesses to get on your level. How much a new competitor with better equipment would affect you depends on several factors. For example, if you have any sort of rental business, you can’t have competitors renting better and more appealing equipment. Similarly, businesses with a heavy technical aspect are often judged based on how sophisticated their equipment looks – you might have seemed like the owner of a business from the future so far, but a new player on the field can quickly send you back into the Stone Age.
  • Your equipment is breaking down and/or isn’t letting you do your job right. Similar to how a lot of people will wear their favorite shoes until they can no longer remember their initial appearance, many business owners will stick to their ‘tried-and-true’ tools for as long as possible. They served you well so far, who’s to tell you they no longer can? Unfortunately, most things not made from gold experience wear and tear, and the time to retire them eventually comes. As a business owner, it’s your responsibility to recognize when this is the case and move on with the times – plus, new equipment will give you and your brand a ‘brand new’ look that future customers will appreciate.
  • There is a growing demand in your area for services you can’t offer due to equipment restrictions. Have you ever had to turn down an interested customer because you lacked the tools for the job? If there have been more than a few of these cases, it’s time to get a bigger tool belt. Your cleaning business might have originally been able to do with some brushes and a lot of hard work, but calls from medical facilities and similar institutions can quickly change that – to cater to them, you’ll have to upgrade and buy a high-powered carpet cleaning van. Expensive, yes, but also an investment that will pay itself off eventually – should you no longer need such equipment at some point in the future, you can always sell it for a good price while keeping all that sweet money it has made you over the years.