There are several major drawbacks to buying computer hardware rather than leasing.
While buying has long been the traditional supply chain model, leasing has risen to become extremely popular due to the inherent flaws with the system of buying devices in modern business.
The most prominent issues are:
- Large outgoing expense at once
- Non-strategic choices that don’t best fit staff roles
- Time consuming to set up, manage and maintain
However, the biggest issue is how buying computer equipment can hamper the growth of a company.
Since buying is such a large outgoing expenditure all in one go, that has a ripple effect on business cashflow for several months.
This large expense prevents the company from putting that money into other projects, specifically profit driven avenues.
Computer hardware is one of those elements that is absolutely essential to the operations of a business. It is virtually impossible these days to run a business in almost any industry without investing in computer devices. Think about how many processes are carried out on computers. Now, think about every industry that comes to mind. There are very few where no operations are carried out on computers.
Despite the crucial nature of computer equipment, it does not quickly produce a return on investment. Computers are a basic need to carry out business operations. Agile hardware and software can make business operations faster, better, and more efficient. Yet, since it is a basic requirement, it does not directly have a chance to produce profit by itself.
Sure, in a round about way, selecting the right, high performing hardware can deliver a profit because it allows your staff to produce their best work. However, in few cases can it be said to be a direct deliverance of revenue and profits.
This makes the risk and reward element of the hardware investment very skewed. It is also challenging as small businesses and new businesses, in particular, will then not be able to put as much into other parts of their budget for a few months, until the cost is replaced.
Therefore, buying computer hardware has a temporary negative impact on rapid growth.
Better Cashflow With Leasing Computer Hardware
Leasing rather than buying computer hardware can make life a lot easier and less complex for many businesses.
Leasing was already an increasingly popular avenue for sourcing devices prior to the pandemic. Like with many other trends during the COVID period, leasing hardware popularity was also rapidly accelerated as business realised how crucial its benefits were during multiple, sudden lockdowns.
Leasing computer hardware, particularly with hyper-flexible solutions like DaaS, can not only save companies money but enable them to boost their profits. It can open up new revenue streams by improving your business’s monthly cashflow.
During the pandemic, businesses realised that leasing solutions like DaaS – Device as a Service, were extremely useful. This is because they allowed companies to quickly swap desktops for laptops and have those devices remotely set up and then deployed to staff at their homes. DaaS was a game changer for struggling businesses in the first lockdowns.
However, leasing solutions have always had the potential to be a major improvement for businesses in terms of opening up new revenue streams. They are not just a useful supply chain model for computer hardware in times of crisis.
DaaS, like Hardsoft’s Devices For Teams, is extremely tax friendly, reducing the size of the outgoing expense in one go, and spreading the cost of hardware evenly.
With the expense reduced to predictable, manageable monthly payments, businesses have extra money to place into profit driven areas, for example campaigns.
Businesses can put that extra money into marketing, digital advertising campaigns, PR, and other strategic areas that directly boost profits.
Services like DaaS can also reduce the requirement for an IT department, so the savings are highly extensive in many areas of the company. With the extra money and healthier cashflow, businesses can focus on putting that money into revenue focused tactics, including creating new revenue streams in their marketing strategies.
New ventures, new hires, and new ambitious projects can all be implemented and trialled more quickly thanks to DaaS. This is especially useful to quickly growing companies who need all of their budgets in profit-driven avenues to expand the company.