Published On: Mon, Sep 5th, 2016

Startup Savings: Where To Cut Costs When You Buy New Equipment

Having a fantastic business idea is an excellent experience. You think you have struck gold, and you plan on getting started right away. But then you realize the sheer amount of investment it’s going to take to make your dreams a reality.

A large part of that initial investment will be on equipment – and maybe machinery. These items of capital are going to cost you big bucks, whichever way you look at it. And, if you can’t afford them – or borrow the money – it’s going to sink your idea before you get started.

The good news is there are ways and means of cutting better deals. We’ve put together this guide for new startups of all persuasions, in any industry. Read on to find out how you can reduce the costs of equipment and make sure your business idea develops into something viable.

lease

Via- flickr

The leasing route

Before buying anything, take a look around and see if you can find rental options. There are companies out there that will lease absolutely anything – you just need to know where to look. Vehicles, photocopiers, vending machines – you name it; someone will lease it. It’s a low-cost route to getting the equipment you need to start your business. Once your profits start to roll in, you can then make plans for investing in your equipment.

Chester Typewriter Repair, 1004 East Tremont Avenue (2002)

Via – flickr

The used market

The next step should be the used market. Again, it doesn’t matter what industry you are in; there will be plenty of opportunities to buy second hand. Let’s assume you are starting a health clinic targeting people who want to lose weight. There will be a variety of equipment you need, the most costly of which will be your key diagnostic and treatment gear. But instead of buying new, why not look around for used cosmetic lasers or other treatment devices? Given that most healthcare centers only use each piece of equipment for a small percentage of the time, it makes sense to avoid paying over the odds.

Life is Sharing

Via – flickr

Sharing

Staying on the healthcare theme, many hospitals are starting to share equipment – and the burden of the expense. By pooling their resources, they save money on buying things they don’t always need. It’s something all startups should consider. Look around your locale to find complementary businesses and reach out to them. Let’s say you are setting up a printing company – perhaps you could strike a deal with a local marketing firm? They share a small percentage of your costs and get to use the press when they need it.

BAKOKO Timber Cafe Furniture

Via – flickr

The flat pack option

Buying furniture from IKEA is always going to be cheaper than buying ready-made as you have to build it yourself. But is it possible to experience this ‘flat-pack’ style of buying when you looking for equipment for your business? In short, yes. If you are good with computers, for example, you can save around 25% on the cost of a new PC by building it yourself. If you are a carpentry business you could save thousands by designing and creating your business workbenches. Put your skills to use and create what you need and you will cut down on the costs of expensive equipment.

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