When it comes time to upgrade or replace your business’s equipment—such as computers, vehicles, tools or anything else your team may use to get the job done—it would be quicker and far simpler to merely purchase the newest model or renew your subscription without much thought. However, to truly ensure you’re getting the best return on investment in terms of cost and team productivity, careful research and reflection is necessary.
But what exactly should you consider before making a purchase? Here, nine members of Young Entrepreneur Council discuss just that, each offering up one factor you should consider first before upgrading or replacing your equipment and why it can ultimately help you make a better decision for your business.
Members pictured from left to right.
Photos courtesy of the individual members.
1. What Your Team Really Needs
Ask your team what they really need. I can speak from the perspective of a marketing and software company. We used to buy all sorts of digital tools to make our processes more efficient, but we ended up canceling a lot of subscriptions because a tool is just a tool. It’s pretty much useless if people don’t know how to use it or simply find it inconvenient. Always check in with your team before you decide to upgrade or replace something. What might seem like a good idea to you may not necessarily feel like a helpful improvement for everybody else. – Solomon Thimothy, OneIMS
2. Your Time And Energy
We take the stance that if it will make you more productive or less frustrated, buy it. We work with accounting software and it alone can be annoying as you’re stuck watching the spinning wheel while your report is calculating. With upgrades to hardware, and particularly speed, it will improve the performance of your most expensive asset: your people. – Marjorie Adams, Fourlane
3. Support Availability
If you’re thinking about replacing business equipment, one of the first things you need to think about is support availability. In other words, is support readily available to help you or will you have to wait until Monday (if it’s the weekend)? If it’s a big problem and you have to wait for an answer, you could lose out on profits and the trust of your audience. With this example in mind, it’s easy to see why the way a brand offers support should drive many of the decisions you make for your small business. – John Turner, SeedProd LLC
4. The Impact On Your Clients And Customers
What will the impact be on your clients or customers? In some business areas, it is okay if you avoid upgrading your equipment because the impact on customers may be minimal. However, in other areas, such as technology or customer-service-related fields, it is important to consider your customer’s experience. For example, whenever Google makes a core update to its products, it has a powerful and immediate impact on how people interact with search engines and websites. So, you have to get on board and upgrade your processes or workflows or else you risk being left in the dust. Overall, it is important to consider the customer experience when upgrading or replacing business equipment. – Syed Balkhi, WPBeginner
5. The Cost Versus The Benefit
When it comes time to upgrade or replace business equipment, one factor you should consider first is the cost-benefit analysis. This involves weighing the costs of purchasing and maintaining new equipment against the potential benefits it will bring to the business. It includes the upfront purchase price of the equipment, any financing or leasing options available and the expected lifespan of the equipment. It’s also important to consider the potential impact the new equipment could have on the business, including any potential efficiency gains or productivity improvements. By carefully evaluating the costs and benefits of new equipment, you can make informed decisions about whether the investment is worthwhile and whether it aligns with your business goals. – Candice Georgiadis, Digital Day
6. Scalability
One factor worth considering when you need to upgrade or replace business equipment is scalability. In other words, is it possible to continue growing with the new iteration of the tool? Or will you need to upgrade again in a year or two? Understanding how well a new tool or resource scales is one of the most important things to examine when upgrading your business equipment. – Chris Christoff, MonsterInsights
7. Safety
One factor to consider when it comes time to upgrade or replace your business’s equipment is safety. No matter the equipment you use, it’s important to ensure that it’s safe for your employees and your business in general. It is important to ensure that the equipment meets all safety standards and regulations to protect your employees from potential harm or your business from any confidentiality breach. – Andrew Munro, AffiliateWP
8. The Timing Of The Purchase
Consider the timing. Is it the right time to replace your equipment? That’s a huge investment and your finances must be in good shape before you make such a decision. Not only that, but you must also look at the market to see if it is able to support your big investment. This doesn’t mean that you’re never going to replace your equipment—just that you have to wait for the right time. There are also seasonal reasons to wait because there may be a better time to purchase equipment, like when demand is low and supply is high. You also want to look at the loan terms because it would be practical to upgrade when interest rates are low. Moreover, you have to consider if the available equipment is the latest model because if the latest version is available in less than a year, you might as well wait. – Bryce Welker, Crush The GRE Test
9. Payment Options
Before you invest in costly equipment or technology upgrades, consider other options. For some equipment, leasing is worth considering. You have lower upfront costs and you may have certain services such as repairs included. Leasing is also good if you think you may want to upgrade again in the near future. The leasing company can often provide the upgrade and you don’t have outdated equipment to sell or discard. When it comes to digital services such as software, you can also consider a subscription service, also known as software as a service (SaaS). This is another case where you have lower upfront costs and can count on the company for support. In all such agreements, however, read the terms carefully so you know exactly what is and isn’t included. – Kalin Kassabov, ProTexting