Running a startup can be difficult, especially when you’re out of cash. You have to invest in a lot of things, including equipment, which can be very costly.
If you’re looking at purchasing equipment for your startup, take a moment and go through some money saving tips given below. You might be able to save on a few hundred dollars, if not more:
1. Buy Used Items
Most people would say no to buying used products without even looking at the benefits of doing so. On paper, buying used electronics may look like a bad idea, even though many businesses buy pre-owned equipment.
The key lies in purchasing from a reliable seller. For example, Amazon has its own pre-onwed program called Warehouse Deals where preowned products are checked before they are put on sale. You must find a store that has quality standards.
Look at the listings found in the Yellow Pages or pay a visit to a thrift store to see what’s available for sale. However, this is a decision you need to make carefully. A few questions you should ask the seller include:
- Why are you doing away with this equipment?
- For how long have you used it?
- Did you face any trouble using the equipment? Are there any shortcomings?
Getting answers to these questions will help you make a decision. Also, do not blindly purchase, but make it a point to get the equipment inspected by a professional to ensure there are no issues. If you are lucky, you may even get a warranty on the product.
2. Contrast and Compare
It is very important to not buy the first product you come across. Make it a point to go through available options and prepare a list of products or sellers that fit the bill. Next, compare them all to make a sound judgment. A wise idea would be to go through a review site like PricenFees where you can find details on any product or seller which you can use to make a sound judgment.
Remember that not everything that comes cheap is bad and not everything that comes with a heavy price tag is good. The price tag is not a way to judge quality. You should ideally go through expert reviews to contrast and compare two or more options.
3. Tax Incentives
While this may not be directly linked to the purchase, you may be able to save a lot of money due to friendly state and federal tax laws. You can deduct the cost of the equipment as an expense in the same year or over the years by way of depreciation.
Certain machinery may allow you more tax incentives. It is a wise idea to look into this so you can save more money.
4. Negotiate and Look for Financing
You can save money by being a little smart. Here are some tips:
Negotiate: Believe it or not, negotiating may help you save tonnes of money. At times all that you have to do to get a discount is to ask for one. However, this option is only available at physical stores or when you buy directly from a seller. Most online stores do not offer the ease to negotiate.
Discounts: Most online stores offer massive discounts, especially if you are a first time customer. It is a nice idea to inquire about available offers before you make a purchase. Also, if the timeline allows, try to buy during the holiday season as stores usually slash prices around this time. Black Friday recorded big numbers in 2016 due to this reason with more and more people availing discounts.
Financing: If you need financing to finance your purchase, you need to compare what banks or financial institution offer so you do not end up paying a lot. You will need collateral and may also have to face certain restrictions when you’re financing a project, so make sure to be careful.
When it’s time for purchasing an equipment, the first thing you should see if you really need it or if your business is doing fine without having to purchase it. In case you need it, look at the options that you have. You might be able to lease or rent the equipment. Doing so may be a wiser option than to purchase as purchasing an equipment has added costs as well. Nonetheless, if you’ve decided to add a new equipment, then follow the above mentioned tips to make sure you do not spend more than what you should on your new equipment.
This post is part of our contributor series. It is written and published independently of TNW.
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