Is it time to purchase assets for your business? Don’t just throw your money away – take your time to make a check list of your business needs, and study it carefully. Even if you’ve made similar purchases in the past, your requirements may have changed since then. Here are some things to consider before you hand over the cash for that new company car, printer or computer.
They need to have a purpose
It feels obvious, but everything you buy for your business should have a clearly defined purpose. This purpose should directly address a need that your business is experiencing. For example, if you have to regularly travel to meetings with clients and take cabs on a daily basis, your fares may be more expensive than the costs associated with maintaining a company car. The need is transportation; the solution is a car. Think objectively about every potential asset you buy before spending any money.
They need to be yours
This is particularly relevant if you’re buying anything second-hand. Don’t assume that everything you purchase is unsecured and yours outright, even if you paid in full. That’s why specialist companies like GlobalX Legal Solutions offer software that lets you check tools like the Personal Property Securities Register (PPSR) – go here to find out more about it. Take the car example: if you buy a car that someone else has used as security on a loan, and they then default on the loan, you could find yourself embroiled in a messy legal situation. It’s worth a check!
They need to align to your brand
If you’ve invested hours into carefully crafting and communicating your brand, don’t just leave it at that. Your assets can continue the communications and do some of the work for you. Not only that, but if you surround yourself and your staff with your key brand messages, then it can double as inspiration and motivation, and remind them to infuse all of their work with it.
If we continue with the car, you could purchase a type of car that matches with your vision. Does your business stand for family values? A sensible car might be the way to communicate that. Is your business all about an active lifestyle? You might want something that you could take camping or to more rugged locations. Everything about you should immediately communicate who you are and why you are there, and you don’t always need to label things with your brand name to state that.
They need to fit into your budget
This is the boring end of the process. It’s often a drag to think about finances when you are in the process of purchasing new assets for your business, but it’s a key factor nonetheless. Don’t go up to your eyebrows in debt just because you want something. Keep it realistic and achievable to ensure that you are able to keep growing in both short- and long-term capacities.
Do you have any tips to consider for purchasing business assets? Share your ideas to help others out!
Jayson @ Monster Piggy Bank says
A business is simply a collection of assets indeed. But, be careful and do lots of study.