Small businesses often have the misfortune of dealing with significant startup costs.
In fact, overwhelming expenses are one of the most common reasons why most small businesses fail.
But, proper budgeting and smart financial decisions will help ensure that your business stays afloat. One of the best ways to maintain control of your finances is to have a strong understanding of your necessary purchases.
Technology has brought us services your parents could have never dreamed of. But even after all this time, we still need copy machines.
Unfortunately, they can be expensive.
Rather than purchase one, you could lease a copy machine in order to save money and help your business grow.
Let's look at why you should rent copy machines instead of buying them.
Renting copy machines, as opposed to buying them, can help you save money and time as a business owner.
Rather than pay thousands outright for a new copy machine, consider renting.
For example, let's assume a copy machine costs $5,000. A typical lease will last 24 months total. In this case, the payments are $150 per month.
At the end of the lease, you will have paid $3,600 total for the copy machine. But, you will have only paid $900 during the first six months.
The money you save at the beginning of the lease will help you grow your business faster. It will also make up for the increased total cost of the lease.
Furthermore, no financing is necessary. You'll just make monthly payments that are easily manageable with the right budgeting.
Section 179 of the IRS Tax Code allows business owners to qualify for a tax deduction when financing equipment and software.
If you have any other concerns about similar deductions, make sure you consult this list of qualifying property.
From a business standpoint, there is no reason to pass up the opportunity for lower initial costs and tax deductions. Both of these will help your business grow.
For those looking for a tax break this year, you need to finance software and equipment before midnight on December 31, 2017.
The entire purpose of renting is so that the buyer can avoid paying the entire cost of the product at once.
Leases rarely have a required down payment, which will help you cut down on your expenses as a business owner.
The lack of a down payment is a blessing for entrepreneurs, as they can immediately set aside the money for something else.
Besides, if you're going to make a large payment at the beginning, you might as well just purchase the copier as a whole. Many businesses don't have this capability.
Many people underestimate how expensive it is to start their own business, especially if they decide to get an office.
Copy machines themselves can cost thousands of dollars. As you might expect, the newer models are the most expensive.
Rather than pay thousands for a copy machine, businesses owners are able to rent one for just hundreds per month instead.
The payments do add up over time. However, your business will have plenty of opportunities to grow and generate a larger, more consistent revenue stream.
Buying even one copy machine is a significant financial decision due to its cost. If your office happens to need more than one, things can get pricey very quickly.
Leasing allows business owners to have as many copy machines as they need without putting a huge dent in their wallet.
There are three common types of copiers: color, digital, and multifunctional.
As the name would suggest, color copiers are ideal for businesses that frequently need colored documents.
Digital copy machines are the most commonly seen in corporate offices. They also function as a printer.
In addition to the having the properties of a digital copier, multifunctional copiers are able to fax, scan, and print straight from a USB drive.
To determine what kind of copiers are the perfect fit for your business, check out our detailed guide.
Over time, equipment (especially electronics) tends to become outdated. Business owners switch out older models for newer ones in favor of increasing efficiency.
When the lease on your copy machine is up, that's it. The machine is no longer your problem. Copy machine leases typically last over one year.
Newer, more efficient models will likely exist by the time the lease ends.
Not only will your copy machine not depreciate in value, you won't have to worry about selling it. This will save you time, and time is always money.
For most businesses, copiers are an integral part of the workplace. They're used for printing, scanning, and faxing.
If competitors in your industry are able to work more quickly and efficiently than your business, your profits will suffer.
This is especially true for businesses that utilize high-volume copy machines that can print hundreds of pages in a short amount of time.
As previously mentioned, when the lease is up you can simply rent a newer copier. This will help you to stay on par with your competition.
Copy machine breakdowns are a nightmare for employers. It results in a significant loss of productivity, and the business owner also has to organize the repairs on his or her own.
The company from which you lease will handle copy machines that break or malfunction, allowing you to focus on other tasks.
More often than not, a local dealer will repair the copier if it breaks. They will also handle any regular maintenance it may require.
For most businesses, the decision to rent copy machines is better for short-term cost, convenience, and efficiency.
But, you should take the time to determine what is right for you and your company.
When deciding whether or not to rent copy machines, think of it as an investment. They will help your business operate better and bring in more money.
To begin your search for a copy machine supplier that meets your needs, check out our price comparison tool.
