For businesses, purchasing assets can be not only extraordinarily expensive but also very wasteful. Unless, you truly can see a benefit in big capital expenditure then buying a lot of items utilised in business can also be wasteful.
As the old adage goes – if it makes money buy it and if it loses money rent it and this has never been as true as nowadays. Smart businesses purchase items that appreciate in value and rent depreciating assets. So, let’s take a look at the best items to purchase and the best ones to rent.
Property
Though not necessarily a concrete rule, a lot of businesses tend to prefer to buy property rather than to rent it. For one reason, purchasing a property tends to give you more control over the building and allows you power over what it’s used for, changes that can be made and means no worries about outside contractual issues. Commercial property also tends to be a good investment in the most part and though property pricing falls aren’t completely uncommon, buildings tend to generally accumulate worth and make a good investment.
Cars
On the flip-side are cars. For business, cars tend to be a little bit of a loss making investment and it’s no unknown for some cars to lose half their price within a couple of years. It’s very rare that a business will get the worth from purchasing a car.
Leasing or long term car hire with 3monthcarhire.co.uk covers you from issues related to repairs, depreciation and reliability. It also allows versatility. A lot of businesses that outsource work for short periods of time or offer workers shorter contracts can rent cars around the employee’s needs. The alternative of purchasing a car doesn’t really make business sense in this area as the car would most likely lay idle for prolonged periods of time and needs to be paid for when not in use.
Employees
Of course, as any HR part of a business will know, the most unproductive and costly extra when not adding to the value of the company is often the employees. Outsourcing work makes so much sense nowadays and thanks to the Internet is easier than ever.
While before a lot of jobs were on short, or temporary contracts, businesses can now use freelancers to do the jobs they require when they require and there is no need for any of the legal or contractual obligations that there is for permanent staff. This flexibility can allow for far more to be done with a lot less and this makes a lot of sense for both small and large business.
Machinery and IT
Depending on the sort of business you’re in, whether it’s a manufacturing or a services business, you’ll need to use either machinery or IT. Outsourcing both to a reputable company can solve a lot of headaches and allows you the support you require, making life a lot easier.
Most outsourced machinery and IT equipment will be serviced, cared for and under warranty as part of the contract. When the contract is up and finished you simply get rid of it and replace it at no extra cost to you other than a renewal of the contract. It makes sense and with the support you get there’s no real alternative.
These are a fantastic bunch of tips and advice for businesses looking to make smart cuts through outsourcing their assets.
About the Author
Cormac Reynolds is a writer and a journalist and a lover of smart businesses that use outsourcing.