If you’re starting your own small business, there are a ton of things that you’ve got to get taken care of before you can really start feeling like a real business owner. From getting a business license to funding your ideas and building up your customer or client base, there’s a lot of work that has to go into starting a business from scratch. So when it comes to the point where you need to start acquiring equipment for your business, you might not know what the best option will be for your startup. To help you in making this decision, here are three situations when it makes sense to rent your equipment rather than buy it.
You Have Limited Cash Flow
One of the first reasons why a small business owner might consider renting equipment rather than buying is is due to having limited cash flow. When it comes to getting equipment, there’s a much bigger upfront cost to buy something than there is to rent something. According to Ryan Kernan, a contributor to BusinessKnowHow.com, if you simply can’t reasonably afford to buy the equipment you’re going to need to run your business, then renting it makes the most sense. Just make sure that before you make this decision based on your financial situation, you speak with your accountant to see if they come up with the same conclusions as you have.
You Need The Most Current Equipment
Another reason renting your business equipment might be a good idea for you could be because you’ll always be needing to use the most current or up-to-date equipment. Especially if you work in a field where technology is advancing at a very fast rate, spending your money to buy a new piece of equipment that’s just doing to be out of date in a few months or years doesn’t really make sense. According to Rachel Burger, a contributor to The Balance Small Business, it’s a much better idea to rent equipment that’s using the latest technology and then return that piece once something more updated becomes available rather than having to try to sell a piece of equipment that no one wants to use anymore.
You Won’t Use The Equipment On A Regular Basis
Because investing in equipment can be a huge expense for a new small business, you should really only spend your money on buying pieces that you’ll be using on a very regular basis. For everything else, Jackie Zimmermann, a contributor to NerdWallet, suggests that you just rent the piece you’ll need as you need them. This will keep you from wasting money on a piece of equipment that would have spent most of its time sitting in storage anyway.
If you need to get some business equipment for your new startup, consider using the tips mentioned above to help you decide if renting or leasing is going to be a better option for your needs.