Are you geared up for the year ahead?

Posted on September 30, 2010

 

"Geared up" can refer to a myriad of factors but an important consideration is your current equipment. You may not realise how important the equipment used in the day-to-day operations of your business are. Consider the computer you are currently using. Have you completed an audit of what equipment resources you currently have, how old your equipment is, or what new equipment may be needed next year?

 

It is important to realise the limitations of your current equipment so that you can clearly identify when it may be time to upgrade.

 

What benefits can I expect from upgrading?

It may sound crazy to consider an equipment acquisition as an opportunity to minimise costs but consider the following benefits that can be measured in dollar terms:

 

Productivity Gains - How much time is currently lost by your team when IT related failures force your employees to restart computers, change workstations, request alternative equipment or take a coffee break while servers/systems are reset or repaired? How often is your copier jammed or out of service and requiring a maintenance call?

 

The up time gained from new IT or imaging equipment can easily be converted in to productivity time gained. Not to mention the positive impact new equipment may have on staff morale.

 

Reduced Maintenance Costs - Once again an IT scenario is best to demonstrate the cost of maintaining equipment longer than its useable life. Let's assume a file server with a useful life of 4 years. At the 4 year mark the file server may require maintenance for it to run at its current capacity. This may be the need for upgraded memory or a replacement hard drive. A few complications now arise. Firstly, technology moves fast, components may now be deemed "old" and therefore hard to source. Secondly, the replacement of a few components does not guarantee that the life of the server will be extended for a long enough period to provide a return on investment for the required maintenance.

 

Consider the cost of replacing components on equipment that may be at the industry average end of its useful life versus updating to new equipment.

 

Technological Improvements - Many office equipment categories have seen a dramatic shift in their technology in the last 5 years. Many of these improvements have introduced increased efficiency leading to decreased manufacturing and servicing costs. This has generated savings on replacing equipment you currently have with new equipment. Not only may the cost of such equipment be cheaper in relative terms but there may also be new features that can also have a positive effect on productivity.
Consider a Multi-function networked copier that can now print, copy, scan and email all from the one device versus your current copier/printer and its features. Can you see added benefits in updating your devices? Even if your current device does all these functions. Chances are current service costs may be reduced with the new technology available in today's devices.

 

 

There is also the intrinsic cost associated with your equipment that you may not easily identify or measure, improved staff morale - The recent uncertainty surrounding the economy has stymied many employees motivation and hindered workplace morale. Many experts have written of the benefits associated with something as small as updating staff equipment that they use to complete there day-to-day tasks. It can improve morale and hence positively impact productivity.

 

Expansion - Now is the time to identify gaps within your market and plan to take hold. As the economy begins to expand these market gaps will also expand. Obtaining a share of these segments can see your market share and overall business grow exponentially.

 

Do you have the equipment resources available to fuel these expansion opportunities? If not, the window of opportunity may close before you have time to act. Proactive planning now will see you capitalise on these opportunities.

Hassle free equipment finance

If you have identified the need to update some of your key equipment you will need to consider how you are going to fund these acquisitions.

 

Recent commentary in the press has focussed on the difficulties SME's face in obtaining credit for their business. Whilst many of the big banks may be assessing their client's exposure there are alternatives available to your bank. Our previous article, "Cash is King" (2008). Stressed that banks and the facilities available are extremely important to SME's, but when it comes to your equipment, consider equipment finance specialists.

 

Contact Alliance Equipment Finance today.

Contact your local Alliance Equipment Finance Relationship Manager to discuss your needs to get geared up for 2011.

Alternatively, contact our Customer Care team via our contact form to request a call back from your Relationship Manager.

 

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