Chosen Thought

Archive for August, 2009

The decisions that business owners have to make are hard. Why do they choose to purchase equipment? How do they decide to lease equipment? What kinds of economic issues do they take into consideration? The article is going to discuss how leasing might benefit your company or how you might want to just purchase equipment outright.

Obviously the steps in making a decision to purchase equipment are a factor that you have to consider. Is your equipment old and not cutting it for your client’s demands? The first option a business owner has is to purchase the equipment from capital saved up. The benefits of doing so are you don’t have to worry about payments on a monthly basis. Most company owners are feed up with the lease or loan process. Purchasing equipment outright limits paperwork that can delay much needed time on the piece of equipment. Also the calculation that a business owner does before purchasing the equipment tell them to buy with cash because of the return expected with signing of a new client. The price of the equipment is low and affordable to pay out of pocket. Obviously there are many more reasons to purchase equipment outright that are not mentioned.

Leasing? Why should I pay that interest rate when I can pay for the equipment? That is the question most business owners will ask themselves. Leasing of equipment provides your company a tax shelter that limits your exposure at the end of the year to the government. Leasing also provides your business with low monthly payments that makes any piece of equipment affordable for small or big business. Also provides businesses with the opportunity to have the equipment pay for it self. The options your company will have with leasing are limitless.

You really can’t blame people for getting it all screwed up. They have been taught that way, and we are social animals and we learn from our environment-I mean, this is nature. However, it’s just numerically the case that they were born in that relationship, in that family, in that city, in that society. The truth is absolutely different.What am I referring to? I am referring to how you’re taught and trained to get a job; taught, trained and educated to get a job.And you’re taught, trained and educated that you can get a better job if you want to make more money and have more of the comforts of life, when in fact there isn’t a job that will ever do it for you. A job, which some people say is an acronym for “just over broke,” is, as a matter of fact, what most people are.

What are we talking about? This: it means being in business for yourself. But not just any business. Many business “owners” simply traded their job for a “pay yourself last” chain around their neck.. That could be worse than a job. You’ve got to get away from trading hours for dollars.”Oh, this is a good job. It pays $20 an hour.” (Adjust this figure for your own location and time.)You think so? Hey, on an eight-hour day that’s $160. Now, you can convert that to your own currency, but then by the time you pay 40-50% to the tax person, that ain’t a good job!And what are you going to do? Are you going to put in a little bit of overtime? How much can you do, and how much do you want to do? You’ve got to think leverage. You’ve got to think multiplication.