New equipment — look before you leap

The thumbnail version:

  • In the excitement of buying new equipment there are important considerations you should not overlook.

The full version:

I really want that new equipment but . . . .

A recent article by Mark Wallis writing for Sign Media Canada had some sound advice for shop owners thinking of acquiring additional equipment. The article is well worth a read because it covers the kind of thing that many small business owners tend not to consider in any depth when making important business decisions such as buying new equipment. Here is an overview of those things:

  1. Who will operate the machine?
  2. Will you have to hire more people and will there be a cost of training involved?
  3. What about maintenance costs?
  4. What does upkeep involve (regular services etc.)?
  5. Do you have enough power to run the equipment?
  6. What additional equipment will you need to make the new item run?
  7. Are you going to run into safety issues?
  8. Do you have the space for the new equipment?
  9. What is the depreciating factor? Will you be able to recover your money if you sell it?

This is all good advice to consider in advance of committing to any new equipment.