Last Updated on Feb 28, 2020 by James W
As a business owner the idea is to make money, that much is obvious. You offer your goods or services to customers or clients and hope that your brand reputation grows and grows and you can make a highly successful business out of a small idea. In order to make a lot, they say you have to spend a little and in the majority of cases this is right. To produce some of the best results, you need the best equipment at your disposal.
Take an example; to win the Premier League you need the best players to make the best team. The same is true in a business sense, where – in the manufacturing industry for example – you need to have some of the most up-to-date equipment like an MRP system to help you get the best results. If you’re using tired, old equipment the quality of what you produce will diminish and you’ll subsequently lose business.
The question is, however, where is the line in terms of what is a sensible business investment and what is just a novelty item that looks good and has all of the bells and whistles, but doesn’t actually help you to do anything too different to what you already have?
Any business asset should provide some kind of value to the business in terms of both financial value, and what it actually does. It’s all well and good investing in the latest and greatest technology which will look appealing to potential investors in the long term, but that doesn’t mean that the company itself is going to benefit in terms of what they can produce and how it affects morale within the team.
If you’re buying any kit, your primary thought should be how it can add value to what you produce, not just your share price and overall company value.
Any business working with computer systems will appreciate the need for good quality protection to prevent ‘hackers’ from obtaining their files and details or corrupting their processes. With people and systems more clever than ever, advanced persistent threats and malware can cause serious damage that costs thousands so make sure you invest in top quality software to help to protect everything you hold so dear.
An important but often overlooked consideration is to ensure that what you’re purchasing actually produces some good quality results. If you buy something that is deemed to be “the next big thing” you need to make sure it is actually suitable for your purposes. If you have two computer systems, for example, you need to ensure that the one you choose does everything you want. Don’t just invest in the more expensive one with more to offer, because you might not use all of it and you’re essentially wasting your money which you could put to good use in another investment another time.