It does not matter if you are planning to open a new or simply expanding your business, you will need facilities or equipment. This simply means that you will need things such as computers, chairs, desks, and even transportation. Well, the good news is that it is possible to rest almost anything these days. However, many business owners prefer buying their equipment such as transportation.
What many do not know is that renting can provide a lifeline for cash-strapped businesses that need necessary equipment for trade. Though, this move is not always the smartest decision. There are situations buying equipment is better than renting. This is because there are many factors to consider such as comparing the rent cost and the income it brings.
Should you buy or rent transport for your business; this is the million-dollar question. Well, to help you make the best decision in this situation, below are the benefits and limits of each. This will help you make the right decision.
In a nutshell, there are generally four factors to consider when making this huge decision. These factors include:
• The Risk
• The Focus or Aim
The Pros And Cons Of Renting Transportation
• You Get Access To Numerous Transport Option: One of the biggest advantages businesses get for renting transportation is that they are not limited in terms of transportation options. This simply means that you will get to satisfy your business’s transportation needs.
• Getting Special Rate: Another benefit is that you will be in a position to receive special rates. What does this mean? well, if you are renting transportation on a contract basis (such as a monthly payment plan, millage basis, etc.), you will surely receive special rates that may benefit your business greatly.
• Efficient And Fast: Renting transportation for your business is efficient and fast. This means you will get the transport you need, at the right time. Generally, you will get a ready transport.
• You Do Not Have To Pay The Full Cost: The benefit of it all is that with renting a truck, you do not have to pay the full cost. This means that you do not have to use up all your cash or borrow money. This is an excellent way to also project your income as well as calculating the risk.
• You Get Access For A Fixed Period: Generally, depending on the point of view you look at this point from, it can be a limitation or a benefit. For example, it can be a benefit if you need transportation for a particular time only. On the other hand, it is a limitation because you are guided by a contract, which means that if it expires, you will not get access to it, not unless you renew.
• You Must Pay: Since you are renting transportation for your business, this means that you must pay for the service.
• Last Minute Bookings: Renting offers limitations to last minute bookings. This generally means that it needs booking in advance.
The Pros And Cons Of Buying Transportation
• Very Efficient And Flexible: This is a benefit that applies to conducting business. It makes doing or transporting material easy.
• No Last Minute Booking: This option does not have last minute booking
• Ad Benefits: With your own transportation, you will get an opportunity to advertise your business.
• Time Constraint: For business with time constraint such as floral shops or bakeries, having a vehicle is more beneficial.
• Insurance And Maintenance: With buying transportation, you must be ready to deal with insurance and all maintenances.
• Storage: When you buy A vehicle, you must have somewhere to store them, like a garage. This will present an issue with your facilities especially if you do not have space.
• Purchasing Cost: It is a known fact that purchasing transportation is not cheap.