Building a thriving business can be a costly endeavour indeed, especially for contractors who are heavily reliant upon their tools and equipment. Each time you purchase new resources for your expanding company, you should be significantly increasing your overall capabilities, efficiency and productivity. If you aren’t, then you aren’t choosing the best investments for the growth and health of your organisation. Following are a few ways that you can gain optimal returns from your next investment in company equipment.
Take stock of what your currently have and make sure that there are no equipment redundancies. For instance, your workers may have more of a specific tool than they actually need to get their work done. If you don’t inventory your business assets on a regular basis, you’ll be in danger of purchasing the same items again and again, even though each new purchase fails to provide your company with any additional value.
Pay attention to the different forms of equipment that you’re having to regularly rent and calculate the impact that the related rental costs are having on your profit margin. While you can always pass equipment rental fees on to your clients, most consumers are savvy enough to account for these hidden charges. Owning your own major tools outright will help you keep your costs competitive.
Ask your workers which tools and resources they’re most in need of. Getting feedback from your team is especially critical if you’re no longer go out with these individuals to tackle jobs. Being out in the field on a regular basis will give them the best understanding of your current equipment shortcomings.
Make sure that you aren’t buying products that are well beyond your actual spending abilities. If you can’t afford to buy a specific item at a reasonable price point and have to settle for a lower quality version, you should wait to make this purchase until you can afford a trustworthy brand. Low-quality tools break easily and they can also diminish the safety of your workers and the job site.
Prioritise additions that are necessary for keeping your employees safe. This will bring the number of workplace accidents down and boost employee morale. When your workers feel appreciated and well-cared for, their overall output will invariably increase.
Establish an equipment accountability program so that each of the resources you buy is kept in good condition and duly returned at the end of use. You can have your team check different items in and out or your can simply equip each company truck with a standard set of gear. This gear can then be inventoried at least once or twice per week.
Whether investing in Ute ladder racks, new power tools or stump grinding equipment, you want to make sure that your next investment provides excellent returns. This way, you’ll have more profits that you can put towards further expansion and additional resources. Best of all, you won’t have to worry about spending unnecessary cash for items you don’t need or losing money on low-quality equipment or equipment redundancies.