Making the right financial choices for your small business can be really challenging, especially in uncertain economic times.
Market-impacting global incidents like the pandemic only make matters more complex. Not only does this affect the economy, but also the day to day purchasing behaviour of your target audiences, and how daily business operations can work. In some sectors that are public-facing by nature, this challenge is deeply exaggerated.
All of this can make financial planning, decision making, and budgeting a major headache for small business owners.
Luckily, simple changes to business operations can make a significant difference to healthy cashflow and make it easier for small businesses to grow. Computer leasing is a prime example of this.
Understanding Small Businesses
Small business, by their very nature, lack the cash reserves of larger corporations, hence every expenditure is a gamble. While investing in certain projects is essential to generate profit, each one is a delicate calculation.
Just as with a big corporation, an SMB must pay its staff, pay overheads like business premise rent, bills, legal fees, etc, as well as potentially paying to attract customers. For companies that sell a product, or products, this could also involve paying for manufacturing or supplies. In a service industry it likely involves software.
That’s an awful lot of spending before you can make a profit. If the company fails to charge enough, or cannot attract enough customers, then it is quickly in hot water, or, at the very least, stagnating.
Once a profitable equilibrium is established, it can still be challenging for SMBs to expand, and every big expenditure could make or break the company.
Sourcing computer hardware is one of the painful, large expenditures for small companies.
Why Is Buying Computer Hardware A Pain Point For Small Businesses?
Computer equipment is expensive, usually bought in bulk, and these days it is crucial to almost every business, no matter how small. In the UK, it is hard to imagine a successful business functioning without computer equipment, regardless of the size or industry.
Not only is computer equipment expensive to buy and crucial to business operations, but it also comes with additional financial burdens.
These hidden extras include:
- Hardware maintenance
- Security software
- Software licenses
- More equipment required when individuals are hired
- Excess equipment if someone leaves or a department is changed
- Obsoletion – the equipment itself becomes obsolete and needs upgrading to a new model relatively quickly, despite the large expense to purchase it
All of these factors result in the purchase of computer equipment hampering small business growth.
Why Is Computer Leasing A Perfect Solution
Leasing computer equipment, through solutions like Hardsoft’s Flexi-Lease, are highly effective at solving the above issues.
By leasing the hardware and spreading that large payment out into manageable monthly payments, leasing reduces the impact of the financial burden of computer equipment.
Leasing hardware is not just a premium solution. Packages like Flexi-Lease are also highly suited to small businesses. After all, it is small businesses that have a more challenging balancing act to tread when it comes to large, one-off purchases. It makes a deeper impact on their budget and takes longer from which to recover.
Flexi-Lease additionally aids small business cashflow by solving some of the hidden costs of computer hardware.
It is true that it will spread the cost of devices into digestible monthly payments, however, it also tackles maintenance costs.
With Hardsoft’s Flexi-Lease, it isn’t just the equipment itself that you receive. Companies also benefit from strategic support and advice. This includes helping with installation, custom configuration, setting up devices and on-going maintenance.
With in-depth warranties, plus accidental damage cover being offered as well, SMBs don’t need to sweat maintenance costs. In fact, a leasing solution like Flexi-Lease practically removes the need for small businesses to have their own IT department, and so saving even more of their budget.
On top of all this, Flexi-Lease is a perfect choice for small businesses owing to its extreme flexibility. With the ability to upgrade devices while keeping the existing ones, small businesses need not worry about obsoletion.
As well as upgrades, at the two-year mark of this three-year lease, the business can choose to CANCEL or CONTINUE its lease. This is a highly flexible and adaptive solution that can be adjusted in line with the company’s current condition.
By improving an SMBs cashflow in this manner, Flexi-Lease is making it easier for small businesses to manage their expenditures and subsequently thrive and grow.