You need your equipment to be in good shape at all times. If one thing breaks down, it could bring your business to a halt. The problem could mess up your entire schedule until it’s replaced — you could even lose sales if it takes too long. To keep everything running smoothly, you need to be prepared for that important equipment to stop working.
Be Prepared from the Get-Go
If you haven’t opened up your business just yet, then this is the perfect opportunity to think about the future of your equipment. You should factor the costs to repairing equipment or replacing equipment into your initial financing goals. That way, you don’t have to rework your budget in the future. You’ll be prepared from the very beginning.
Start by researching the type of equipment you’re going to need for your business. Look up the average prices, the average costs of repairs and how long the pieces are expected to last.
For instance, if you need a photocopier for your office space, you’re going to want to know that a brand-new model is expected to last between 7 to 10 years if it’s brand-new. So, if you invest in a new high-end photocopier, you’ll know that you won’t have to worry about upgrades for a long time. But, if you get a used model, you’ll need to prepare for that break down to happen much faster.
Invest in Quality
One way to lower your chances of equipment breakdown is to invest in quality. While you can save some money by picking used items and old models, the savings might not be worth it in the end. When you consider the potential costs of maintenance, repairs and complete replacements, you’ll realize that you might not be saving much at all.
You’re better off thinking of the long-term when you purchase business equipment — you want to take a high initial cost to avoid the costs of depreciation later. If you need to think of savings, look for discounted or used pieces that aren’t necessary for the business to function. Items like desk lamps or shelving units don’t have to be top-of-the-line.
If you don’t think you can afford to invest in quality equipment, you can look into our small business financing options so that you can make the right purchases. All you have to do is send in an online application and you could get access to this funding within days.
Have a Back-up Plan
Even when you purchase high-quality equipment, you always need to have a back-up plan. Something can always go wrong. You should consider these three options as a way to resolve an unexpected breakdown.
You can get equipment breakdown insurance to help you cover the costs of repairs, along with the residual losses from the malfunctioning appliance. Even if you work from a home office, you can manage to file for this specific type of coverage.
Here are some items that the insurance can take care of:
- Boilers and furnaces
- Air conditioning
- Computer equipment
If you factor in the costs of equipment repairs or replacements into your original financing, you need to take that calculated amount and stash it into a savings account. This will be the emergency fund that you use to make these inevitable payments as quickly as possible.
Other than speed, another one of the benefits of having an emergency fund is that it will have a minimal impact on your cash flow. You don’t have to touch a single penny of your monthly budget. You don’t have to whip out your credit card. You don’t have to panic about cutting costs so that you can make the payment go through. As long as you have enough in the fund, you should be fine.
After using an emergency fund, you always have to try your best to replenish it right away. Leaving it empty puts you in a vulnerable position. If another piece of equipment breaks down soon after, your finances could take a big hit. By refilling the emergency fund, you can guarantee that your safety net stays strong.
What if you don’t have insurance coverage? What if you don’t have an emergency fund available? You wouldn’t be the only one. Over 58% of Americans have less than $1000 in their savings to cover unexpected costs. So, it’s understandable that the average owner won’t have a stash of money for emergencies.
In that case, you can always turn to First Down Funding for help. We offer bridge funding for these types of scenarios. It’s designed to bridge the gap and get you back to solid ground in a hurry. So, if you have no way of taking care of a sudden equipment repair or replacement, you can send in an application online and get access to the money right away.
Bridge funding can also be used to cover these short-term needs:
- Buying discount materials
- Improving everyday cash flow
- Honoring payments to partners
- Meeting small missed payments
We know that having access to cash is necessary for running your business smoothly — otherwise, you’d have to panic every time an unexpected cost comes up. When you can afford these costs, you can deal with broken equipment right away. Then, you can get back to your regular schedule.
When you don’t have access to emergency funds, you can’t fix the problem in a hurry. You have to take the time to make the repairs and to scrounge up enough money to pay for it. You could completely disrupt your cash flow, upset customers and lose sales. A single piece of equipment could cause a massive setback. You could be dealing with the ripple effects weeks or months later.
You can’t afford to put your business on hold, even for a day. You need to be prepared for that moment that your equipment stops working properly so that you can get the repairs or replacements right away. When you have the necessary funds on hand, you can make sure that the problem is a minor inconvenience and not a total disaster.
Categorised in: News
This post was written by firstdownadmin