If you have a start-up business, the urge to fill it up with equipment as soon as possible is strong. It’s even stronger if the nature of your business relies heavily on equipment, like a graphics design studio.
But before you start purchasing computers, servers, and other items, it would be better to come up with a plan to prevent going over budget. Also, try to figure out how much your VAT returns are going to be so that you can work on recouping expenses. Here are some more steps you should keep in mind.
Make a list
List down all the items you need. Don’t just write them down, however. You also need to indicate which equipment you need right away to run your basic operations and which ones you can save for later.
Learn to outsource
Not all equipment that comes to your mind should be in your office, especially if you have a start-up company. Chances are your office is small and your budget is limited. Rather than buy all the equipment you want, choose the ones that you can outsource instead.
For example, if you have a graphic arts studio, you should invest in digital editing equipment and top-of-the-line cameras. But you should leave the printing side of the business to other companies because printers are expensive and you can outsource this aspect from many shops.
Buy second-hand equipment if you can
New equipment will be more expensive, of course, so try to look for pre-owned items that are still in good quality. You shouldn’t settle for second-hand equipment that is central to the nature of your business, though.
This means that you can buy second-hand phones and computers that you will use to contact customers and manage inventory, but not pre-owned computers to edit images for your graphic arts studio. You don’t want to run the risk of producing poor quality photos. Spend on equipment that truly matters to your business.
Sometimes, your family or friends have a few items they no longer need that you can use in your office. If they do have those items you’re looking for, then kindly ask them if you can borrow. This can save you tons of money that you can allot to expanding your business.
Use credit cards
It’s highly likely that you won’t be able to afford all the equipment you need. You can ask for a business loan from a bank, but seeing that you’re a start-up, it can be hard to secure one. You can assure them that your start-up has a strong foundation by showing them your business plan, but an easier way to get the equipment you need is to use a credit card.
If you’re going to use a credit card, however, make sure that you monitor all of your expenses. Store all your receipts. Pay your dues on time to avoid interests. The worst thing that can happen to you while you’re managing your start-up company is paying an exorbitant amount of debt. It can keep you from expanding your business, so be wise with your credit card use.
Purchasing equipment is a necessity for your start-up business. As long as you do it wisely, you can manage your expenses and work towards expanding your venture.