Business trends are changing fast and no month passes without an innovation that can change how businesses can enhance their efficiency and improve productivity. Business owners are very enthusiastic about new business innovations and they are highly interested in incorporating them to their companies to increase productivity through enhanced efficiency.
However, the cost of incorporating trends is very high. Here are some simple strategies your business can use to incorporate the current trends.
1. Get Business Loans
Why don’t you get a business loan and purchase the equipment? There are several loan options out there in the industry that you can quickly get and finance your equipment. Most of the plants and equipment in various companies are funded through business loans.
However, you should always consider the small business loans which have added subsidies and an extended repayment period. Remember the new equipment will not generate income immediately to service your loan, so, look for lenders who are willing to wait.
Business loans can be done for any reason, businesses take business loans for the following reasons:
- To maintain and accelerate business operations
- Start a new office or branch
- To invent in internal affairs like equipments and resources
- To match the competitor investments
- To regulate the official cash flow
Business loans have there own importance and benefits, below given are some of the best benefits of taking business loans;
- Business loans are granted to the corporate identity and are not liable to be repaid by the business owner or proprietor
- Business loans are given on comparatively lower interest rates!
- Capital Availability and limits are much higher in business loans
- Withdrawing flexibility, i.e. you can withdraw the loan whenever you need!
2. Leasing Agreements
Leasing is a financial agreement between the lesser and lessee where the lessee has to pay lease amounts for an agreed period. If there is equipment that can change your business operations but you don’t have money to buy such equipment, you can lease from the equipment manufacturer or from companies that have been able to purchase. Some of the advantages of the lease agreement are that you will not be required to purchase the equipment at the end of the lease period and you will not pay depreciation costs.
3. Hire Purchase
Hire purchase is a buying agreement between the seller and the buyer where the buyer will take the equipment and pay in instalments. Unlike lease agreements where the tenant returns the equipment, in hire purchase, the ownership of the equipment is transferred to the buyer.
This is a simple strategy that many organizations have been using to buy most of their production and manufacturing equipment. However, it is essential to highlight that the hire purchase price is always higher than when buying on a cash basis.
4. Equipment Loan
Another strategy that your business can use to access trendy equipment in the industry is through equipment loans. Some lending institutions are very specific when giving equipment loans. All the money (loan) given must be involved in buying the equipment. The problem is that the equipment bought through such loans becomes the collateral and can easily be auctioned in cases of default.
Organizations operating in the same industry can choose to buy trending equipment through cost sharing. Sharing the cost of the equipment on a 50: 50 basis is a simple way of raising money. However, there should exist a clear agreement on how the equipment will be used after purchase. Cost-sharing mostly works in non-profit making organizations such as schools and government departments.
Crowdfunding is an amazing way to increase the funding for your business, as the name suggests its a way of funding a business, project or venture by raising a small amount of funds from a large number of people with the help of mass media mainly the Internet. Crowdfunding is mainly beneficial for artistic ventures and businesses where people will like to invest in your talent more than your business.
Benefits of crowdfunding:
- Crowdfunding campaigns are easier to implement
- It builds relationship and increase social proof
- You get to know the interest of people, are they interested in your business or service or not.
- Free marketing! Crowdfunding is like one job with two works, you get funds and with funding you get to have free marketing.
Challenges of Crowdfunding
- Difficult to design and implement a campaign where people get eager to invest in your business or venture.
- Time-consuming! Yes, Crowdfundings are not done overnight, it takes time to design, implement and market your crowdfunding campaigns!
So, are you looking forward to buying new and trendy equipment for your business but you do not have sufficient funds to finance such investments? These are some of the simple strategies you can use to keep your business relevant to trendy with modern equipment.