Building a thriving business can be an expensive undertaking, especially for contractors who rely heavily on your tools and equipment. Every time you purchase new resources for your expanding business, you should significantly increase your overall capabilities, efficiency, and productivity. If not, then you are not choosing the best investments for the growth and health of your organization. Here are some ways you can get optimal returns on your next business equipment investment.
Take stock of what you currently have and make sure there are no equipment redundancies. For example, your workers may have more specific tools than they really need to do their job. If you don’t inventory your business assets on a regular basis, you’re in danger of buying the same items over and over again, even though each new purchase doesn’t provide any additional value to your business.
Pay attention to the different forms of equipment you have to rent on a regular basis, and estimate the impact related rental costs have on your profit margin. While you can always pass equipment rental fees on to your customers, most consumers are smart enough to account for these hidden charges. Owning your own core tools will help you keep your costs competitive.
Ask your workers which tools and resources they need the most. Getting feedback from your team is especially critical if you’re no longer dating these people to tackle jobs. Being in the field regularly will give you the best understanding of your current team’s shortcomings.
Make sure you don’t buy products that are way beyond your real means of spending. If you can’t afford to buy a specific item at a reasonable price and have to settle for a lesser quality version, you should wait to make this purchase until you can afford a trusted brand. Poor quality tools break easily and can also decrease the safety of your workers and the job site.
Prioritize the additions that are necessary to keep your employees safe. This will reduce the number of workplace accidents and increase employee morale. When your workers feel appreciated and cared for, your overall production will invariably increase.
Establish an equipment accountability program so that each item you purchase is kept in good condition and properly returned upon completion of use. You can have your team check different items in and out or you can simply outfit each company truck with a standard set of equipment. This equipment can be inventoried at least once or twice a week.
Whether you’re investing in Ute ladder racks, new power tools, or stump-grinding equipment, you want to make sure your next investment provides great returns. This way, you will have more profit that you can put towards further expansion and additional resources. Best of all, you won’t have to worry about spending unnecessary money on items you don’t need or wasting money on low-quality equipment or equipment redundancies.
