The equipment you utilize to conduct your business can be one of the biggest costs you have to deal with. While this spending can be frustrating, you can’t, of course, run your business without the right equipment. Given this dichotomy, then, it’s important that you do everything you can to minimize your costs in this area. One of the best ways to minimize costs is to understand when it makes more sense to rent equipment and when it makes more sense to buy equipment. Here are four guidelines to follow.
When the Term is Short
If the time that you’ll need the equipment is limited, it’s a wise idea to rent instead of buy. This is true, in many cases, even if you expect to encounter these specific circumstances again. This is because if you purchase the equipment, you have to have a place to store it, whether or not it’s being used. This extra space, along with the higher cost of buying, often makes renting a better option for short-term projects that are not a core part of your business.
When the Time is Limited
If you need to deploy a particular piece of equipment quickly, equipment rental typically makes more sense. Rental equipment is always ready to go at a moment’s notice, given the wide variety of businesses which may have a need for that particular piece. With buying, on the other hand, though you can often do more to customize a piece of equipment to your needs, you typically have a waiting period as the piece of equipment is prepared for your company and then deployed by the representatives from that company.
When You’re Growing Your Business
As your business grows, especially when it’s growing quickly, renting the equipment you need may make more sense than buying. Renting your equipment will protect you against any unforeseen changes in your business’s trajectory, which could be quite expensive if you have purchased equipment that then needs to be switched out. Of course, if the trajectory you’re on matches the forecasts you have made and you don’t see that changing, then buying may make more sense in the long run.
When You Have a Specific Need
If you have a need for a piece of equipment with custom specifications, buying may be the way to go. A piece of equipment that’s designed specifically for you is sure to fulfill the requirements you have for it. This ensures you can use the equipment at optimal efficiency at all times, allowing for the best return on investment. Of course, if you need to experiment with different types of equipment to see which type works best for your particular application, renting is the way to go.
Unlike Any Other
To be sure, there are instances where buying equipment is better than renting, and there are others where renting equipment is better than buying. What’s most important is that you realize that your business is totally different from any other, meaning a solution that works for another business may not work for yours. By being intimately involved in the day-to-day operations of your business, you will position yourself to make the best decisions regarding equipment acquisition.