Five things you should buy and not hire in 2018

business purchase not hire

Thinking of starting a new business this year, or looking at ways to future-proof your current business while saving money? Hiring may seem like an easy way of getting your hands on the equipment you need, but it’s worth considering how buying instead can work for you. Read on to find out more…

Temporary fencing – construction/events industry

Don’t be fooled by the “temporary” in the name – temporary fencing is durable and strong, and is designed for regular use across many types of projects.

If you’re in the construction, road management, entertainment or events business, there’s a good chance you’ll find the need for temporary fencing more than once.

If you’re finding that you’re hiring temporary fencing and returning it only to discover it will be required again for another project, it’s time to look at buying temporary fencing outright!

It’s important to think about whether the amount of fencing you need for one project will be similar for what you need in future projects, and where you can store temporary fencing – but the financial benefits of buying instead of hiring will make temporary fencing a great investment.

Your own premises

There are so many variables when it comes to owning your own business, and it’s important to future-proof yourself as much as possible – the next question to ask yourself is whether you can buy your own premises instead of renting.

Investing in real estate can be nerve-wracking, but don’t let that stop you from looking into it – you never know how it could help your business!

Owning your own premises means you can have more control over where you set your business up – even having the potential to move in where there’s less competition for your business nearby.

There are different ways of buying the perfect premises – a self-managed super fund could work for you, or maybe a more traditional mortgage is the way to go.

Once you’ve bought your building, you can even lease the building back to the business, effectively paying yourself rent and having the potential tax benefits which come with that.

If the premises are bigger than what your business currently needs, you can lease spare space to other businesses, creating further income for yourself.

No matter which route you take, speaking to a financial advisor is vital – but don’t be afraid to take the first step.

Shipping containers

Maybe you’re outgrowing your business premises, or your inventory includes items that are vital but not used year-round.

Shipping containers have become popular in recent years as an easy and low-maintenance way to store your goods – and if you buy one outright, it’s even more convenient.

By owning your own shopping container, you remove the cost of hiring or renting, and any relocation fees that come along with that.

It also means you’re free to relocate the container when you need, rather than waiting on permission from the owner of the container.

There are some things to consider when it comes to buying a shipping container – whether you have adequate space to house the container and for the truck to deliver it; what local laws might be around container ownership and placement; and whether the area you’re planning to store it is level enough for the doors to open and close.

However, if you think owning a shipping container rather than renting it will be appropriate for your business’s needs, then you’ll reap the benefits and flexibility of having your own container at hand.

Office equipment

If you’re just starting out in your new business, it’s important to understand the type of equipment your business needs – and whether you should lease or buy it.

Depending on your needs, there are pros and cons for both options – leasing means you can likely acquire more up-to-date equipment when it becomes available, but you could also end up paying more over the lifetime of the equipment.

When it comes to buying your office equipment, it can be hard to have a lump sum available up front – but you’ll own the equipment outright, and can make sure any issues with the equipment are fixed in a prompt manner, rather than waiting for the leasing company to sort out the issue.

Buying your office equipment also means you have the option to sell it once you’re finished with it, giving you the potential to recoup some of the cost.

There are also potential tax benefits to be had when it comes to buying your equipment outright, so make sure you do your research and make it work for you!

Construction equipment

Just like buying office equipment outright, it can be daunting to come up with a lump sum to buy your construction equipment outright!

However, it makes sense to purchase the equipment, tools and vehicles that are vital for your business and are used by your employees on a frequent basis – especially if the equipment is important to the day-to-day running of your business.

Purchasing construction equipment for your business can also have long-term tax benefits, so it’s again important to research and be aware of what needs to be done to reap the benefits of buying the equipment. Follow these tips and look online for some reputable construction suppliers that might be of benefit to your business.

Best of all, owning your own construction equipment means the tool or vehicle is right there for you to use when needed – no wasting time waiting around for contractors and their equipment!

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