Decisions Decisions. Spending money is never easy. Especially when it comes to small business spending. Making investments in things like equipment, new hires, and real estate are always tough choices. Am I spending too much? Is it the right equipment? Will the price be better next week? Small business owners are always up against these tough decisions.
Some advice. Have a simple plan on making the decision before starting. Just like a business plan, have a plan on making a purchase. Things to consider:
- Have a budget. If you cannot afford the product or service it will do you no good in the long run. Be wary of up-sells and other things that will increase the advertised or quoted price.
- Return on Investment. What will this product or service do for my business. Will it help create more profit?
- Cheap is Cheap. Don’t always go for the lowest price. Remember, price without quality is never a bargain.
- Service. Am I on my own or will I get service with my purchase? Who and where is my customer service? Calling India and long waits on the phone or being charged for service is never a good thing. Paying a little extra for good local service is always worth a little extra in the price.
- Quality of Product. Many products and services claim to be the best, get a good referral from an actual user.
- Have a Time Frame. Many business owners know they need a product but are wary of pulling the trigger for fear of making a mistake. Once a decision has been made to purchase give yourself a specific date on making the purchase. Most business owners who have a plan and fail to act always regret acting sooner once the purchase is made.
It is never easy making large business purchases. Mistakes will be made, but with proper planing mistakes are less likely to happen.