Equipment is the biggest expense a small construction business will take on, and it should not be done lightly. When only four employees are involved, every purchase must be essential. When is it best to rent, and when is it best to take the dive for a full purchase?
The Scale of the Business
A Telehandler Rental in Harrisburg PA may be all that’s necessary. A purchase could be a bit much, and choosing one over the other will depend on the size and scale of the operation. There is a budget balance being considered. 50% of business profits should be put back into growing the business. This includes buying new equipment, marketing the firm, and other expenses that grow the firm in a direct way. Others break the remaining 50% in half (a common spread is 25% to savings for future investments and the other half go in the pocket for expenses). Anyways, a rental is preferred if the budget is not accommodating these spreads. Rent the equipment until other priorities are set, such as buying required equipment that is used daily or marketing the business.
Equipment Per Person
Small construction operations follow another common rule. They have one piece of equipment for every two people working in the business. If the company expands from two to four workers, they need to add another necessary equipment to meet the growth demands. This offers some flexibility and allows the company to take on new projects. While transitioning and growing, a rental is a better purchase.
Marketing and Building
When the company is small, it must make marketing a precedence. This should often be beyond owning equipment. A Telehandler Rental in Harrisburg PA can be given back, but owned equipment must be stored and maintained. The small operation should make sure it has enough legs to justify the purchase of a telehandler or other relevant piece of equipment. Otherwise, the purchase will not go far. Equipment should only be bought if it is intended to be used for roughly five years.
Rent to get the most amount of flexibility in the early months and years of the business. Do not unnecessarily purchase equipment that could evolve out of the business. Also, click here for great prices on rentals in the city.
