Many small businesses are often hesitant to make large business purchases, as they are fearful they are making a large purchase prematurely or the purchase won’t positively impact their business. For example, a farmer may be considering a new piece of agricultural equipment or a hairdresser may be considering enhancing their washing and styling stations. In this blog post, we outline 3 signs that suggest it’s time to make a large business purchase.
1. The purchase would solve a problem
If you are currently experiencing a business problem, such as being unable to gather the best yield from your crops, and a large purchase would help you to solve this problem, it is a good indication that the purchase is necessary and will positively impact your business. It is not enough to simply ‘want’ the purchase, it must have clear benefits and be addressing a problem within your company.
2. The purchase would help you to meet customer demand
If your business is in high-demand and potentially having to turn customers away, this is a sign it may be time to make a large business purchase, providing the purchase will allow you to serve more customers. For example, if you have to turn customers away from your salon due to not having enough washing stations or styling equipment, an investment into more equipment for your salon is necessary as it will allow you to serve more clients.
3. Your business has been stable
If your business has been consistently making profits for 6-12 months and is not currently in severe debt, investing your profits into a new business purchase is an effective choice. Whilst you may not have the money to buy new equipment outright, having a stable financial record will prove you can make payments for leased equipment.
Time to make a large business purchase – find out more
If the above information suggests it is time for your business to make a large purchase, but you do not want to harm the cash flow of your business by purchasing the equipment outright, contact Tower Leasing. We offer leasing and alternative finance solutions that can help you grow and expand your business.