Leasing Computers – Give Your New Business a Strong Start
In good times and bad, starting a new business requires attention to costs. Many new business startups choose leasing computers over buying so they can free up capital and credit for other expenses.
Who Wants to Start a Business Now?
Of course, we are experiencing bad economic times right now, so you may be wondering whether it is wise to start a new business. Consider a few points raised by Steve Hart, writing in the New Zealand Herald.
Times of economic retrenchment mean layoffs. Hart believes that for many unemployed people, it is easier to start a new business than try finding a new job. He also states that starting a business in bad times is not that different from starting one in good times, but entrepreneurs may need a little extra confidence.
How do you know if you have a winning business idea? Do some research, find out who your competitors are and make sure you can offer a new and radically different way of doing things. Maybe it comes down to serving a niche market – perhaps in communications or marketing – two areas that businesses usually need help with in a recession. Or, using the example in Hart’s article, it may be a new selection of consulting services, packaged in a way that appeals to businesses needing assistance with public relations, employment strategy, branding, company culture, and so on.
Once you have decided to launch your business, you need to create a complete budget that factors in all of your expenses. Since the purchase of IT assets will eat up a significant portion of that budget, you may want look at how leasing computers can help you save money.
Benefits of Leasing Computers
One of the main benefits of leasing computers is that it frees up your capital and your credit. Instead of tying up a large portion of your available credit or using your cash reserves to purchase computers and printers, you can lease for only a small monthly payment. With more cash and credit available, you can manage other, unforeseen expenses that may arise.
The payments you make for leasing a computer or other office equipment can often be written off as business expenses.
Leasing computers also takes the pressure off the long-range budgeting process. With leasing you know what your costs will be every month.
And what about obsolescence? In a couple years’ time, your IT assets will be old hat. Instead of having to lay out more money to upgrade, you can simply obtain new machines when your existing computer lease expires.
Before Leasing Computers…Read the Fine Print
If you think leasing computers is the right option for your business, be sure to check all the details of your lease agreement. Know whether there are penalties for ending the lease early, determine what kind of support you receive for your leased equipment, and find out about the requirements for obtaining insurance and carrying out maintenance on the equipment.
If you are still not sure about the value of leasing computers, speak with a leasing agent and your accountant to get a complete picture of the financial pros and cons, as they relate to your business.