For example, do you buy now, or wait for next year, when snazzy new features might be incorporated into what you are buying? Or will waiting give your competition too much of an advantage, from which you may never recover?

It’s been my experience that the decision to buy new equipment usually makes itself pretty clear, especially when we’re discussing straight profit-enhancing equipment (like manufacturing equipment, better software, new delivery trucks, or similar.) When buying new equipment makes your company (and/or product) better, faster, and more efficient, it’s usually a pretty clear “buy now” scenario. The advantage of having reliable delivery vehicles or machines that can turn your product out faster is easy to see.

But what about equipment that isn’t directly tied to making profit? When is it the right time to buy new desks, new break room / cafeteria equipment, new cubicle fixtures, or even new carpet? How about signage – when is the right time to buy new signage? Or to upgrade the look of your front entrance?

These things might not be so clear, especially in the day-to-day sense. And it’s easy to let them slide. After all, a desk from 1965 still performs its intended function just fine.

True story – there was this manufacturing plant in my hometown, and I knew a lot of people that worked there. Kind of like that place that almost defines a town. It was a fairly modern plant in terms of machinery, but the “front offices” were right out of the 1960’s. They even still used a “switchboard” in the 1990’s, with an operator plugging calls in. While they prided themselves on the fact that a human still answered the phone, I can only imagine what potential clients felt when they saw the antiquated furniture and old-style telephones. They stayed current in raw production, but everything else, from communication equipment to computers to the desks, never improved. They went out of business around 2005.

I’m not saying new desks would have saved this company. I *am* saying that the lack of mindset that buys new desks and keeps the company face looking contemporary definitely contributed to their demise. It’s just like your clothing – you need to look the part you are playing.

My advice to executives? Look around at your industry peers, competitors, and clients. You should be right in that upper-third in terms of “look”. I’m not saying you have to be the sleekest, but the company that doesn’t have nice furniture or a good looking sign is not one many people want to do business with. Looks aren’t everything, but they do say a lot about your company’s health.

I’ve been doing this for a few years now, and have had an uncanny ability to get extremely lucky with some really “out there” predictions (I will forever hang my hat on that Eli Manning thing, to the point where I’m mentioning it every year), as well as whiffing on a few things. Such is life. But here they are – my predictions for 2015:

• I like the economic outlook for 2015. I’m not a skilled enough economist to know what affect the falling fuel prices will have on the overall economic structure, but I do know more money in everyone’s pocket due to a declining expense can’t be all bad.

• In my industry (equipment financing), I predict a fairly strong year. As bank regulation increases, smaller businesses are increasingly looking to alternative lenders.

• I think Obama will use his last two years on more social-type programs (we’re already hearing rumblings of this), and I predict the other side won’t like them one bit. I also predict people from both sides of the political spectrum will argue a lot (really going out on a limb here, aren’t I?)

• We got that last minute boost for Section 179 last year, then it dropped like a stone again for 2015. I predict another boost, and earlier than the 11th hour that was 2014.

Now let’s do sports, which is my favorite:

• Football – I whiffed on my Broncos pick last year, and they’re already out. Let’s go with the underdog Colts this year. I feel Lucky (get it?)

• Baseball – I’m sticking with the Dodgers and Don Mattingly. C’mon Baseball Gods – get Donnie Baseball his ring!!

• Basketball – I hit with the Spurs last year, and said it would be Tim Duncan’s last hurrah. But he’s still around, but I like the moves the Dallas Mavericks made. So that’s my pick.

• Hockey – I missed on my Olympic prediction last year. This year, let’s go with the NY Rangers again.

And there you have it. I hope it all comes true (especially Section 179 – I would like to see that boosted nice and early this year.)

The blog has moved from EquipmentFinance.Net to the big show on CrestCapital.com

LeaseGuy.CrestCapital.com

Compared to recent years, 2010 was, at the least, somewhat stable. It was far from what anyone would call a “good” year, but on the plus side, we kind of knew what to expect from it (not much), and the only real curveballs we got were good ones. Like the Section 179 extension / boost. That was unexpected, and very welcome (if you look at my posts from earlier this year, I, like many others, truly thought that Section 179 was done – it was a definite surprise to us all.)

So it wasn’t a great year, and it wasn’t horrible. I suspect most business owners will be hopeful that 2011 is a stronger year business-wise. I think it will be – at the least, it’ll be another unsurprising “average” year. And at best, we’ll see some movement up.

I had mentioned in previous New Year’s posts that I worked in an office supply store in my younger years, and got my first taste of Section 179 when local businesspeople would rush in on New Year’s Eve and buy thousands of dollars worth of copiers, computers, fax machines, etc. The reason being (of course) that midnight is the deadline to buy it and put it in service.

Now, I’m not going to tell you to run right out on New Year’s Eve and buy stuff (I know Mrs. Fletch would not be pleased with me if I spent our New Year’s Eve buying and hooking up a computer), but I will tell you that there is still a little time left – right now, you can still take advantage of Section 179, and make 2010’s numbers a little stronger.

Also, I’d like to express a hearty “Happy Holidays / Happy New Year” to everyone who reads this blog. I hope I’ve been at least a little informative to you, and given you a twice-monthly reason to think about Section 179, Equipment Financing, Taxes, and other financial stuff that doesn’t readily spring to mind. See you in 2011!

• I’d like to give thanks to the government for realizing that small businesses needed help, and increasing Section 179. It’s definitely a step in the right direction. But it can go further. As I pointed out in another post, bringing back the ITC (the Investment Tax Credit) for equipment and software purchases would be great. Maybe 2011 brings this around.

• I’d like to give thanks to business owners for not grabbing pitchforks and torches and revolting against the government. Yes, I know I just gave them props for the Section 179 boost, but seriously, it happened in the year’s third quarter. So it took them a LONG time to realize “hey, maybe things aren’t as good as we’ve been saying they are.”

• Let’s give thanks again to business owners for weathering the storm that was 2010. Whew, that was tough, huh?

• I’d like to give thanks to Webster’s dictionary for reminding me that “recovery” still means what I thought it meant. Because I have to say, it annoyed me slightly to constantly hear the word “recovery” when in fact, we were really pretty stagnant. In this day and age, “recovery” must mean “well, at least it’s not getting any WORSE.” That works in the hospital (“He stopped bleeding – he’s on the road to recovery!”), but not in the economy.

• I’d like to thank clients who came to my company for equipment financing. We worked with as many people as we could to get them financed, and as the year winds down, I can say that I’m satisfied. It could have been a better year, of course, but we’re all saying that. And like I have mentioned earlier this year, we’re all still here. And that counts for something.

• I’d like to thank Mrs. Fletch for putting up with me. I’m pretty tied to my work, because I like what I do, and she understands that (although she understood it even better when the pool groundbreaking occurred!)

• I’d like to thank my readers. While I write this blog for me (I’m one of those guys who always jotted down his thoughts), it’s really nothing but blather without readers (although some would say it’s blather anyway!) So thanks.

My Section 179 Addendum

This is an addendum I’ll be adding to my posts for the rest of the year. That’s because it’s getting later in the year, and Section 179 for 2010 ends soon. If you want that new piece of equipment, and also want to take advantage of the new, higher limits, NOW is the time.

But you know, it’s pretty plain to me that we hit bottom some time ago, and things are definitely getting better. It’s pretty plain to me.

I know I’m an equipment financing geek, and to many, that must mean I like numbers and economic indicators and GDP and the like… in reality, I don’t. While I like numbers in an equipment financing and taxes sense, I don’t pay attention to “big” economic talk, and things like “we arrived at this number by taking the consumer price index and subtracting the unemployment rate and multiplying it by the gross (not net) GDP” just put me to sleep.

No, I can tell things are thawing by my phone. And my e-mail inbox. Because both are starting to heat up in terms of people (and companies) looking to finance equipment. I know it’s unscientific, but it’s also – to me – a more reliable indicator than the “bigger” numbers.

Truth be told, business has been slowly climbing since January, really (when I last posted about this.) Which is usually odd – winter is usually dreadfully slow for everyone except snowplow drivers. But I guess we had nowhere to go but up, and January / February were better than expected. And it’s not just your friendly equipment financing dweeb – it’s pretty much widespread. It’s like that January post where I said people would likely start to think “ok, I survived the storm –what now?” And the “what now?” turned into “business must move forward”. And despite Puxatawney Phil seeing his shadow (again), things are decidedly bright.

There’s no real point to this post except to get a piece of “non-doom-and-gloom” news out there. Because for a year, we were bombarded with bad news. It’s time for some spring freshness (now I sound like Mrs. Fletch on her annual “this place needs some work” rampage.)

“Here’s an inside look at the mishaps of Honda racers, designers and engineers to learn how they draw upon failure to motivate them to succeed. From poor color choices to blown race engines, these risk-taking individuals provide an honest look at what most people fear most. Watch the film and discover the upside of failure.”

Success isn’t permanent, and failure isn’t fatal.

Mike Ditka – Football player & Legendary coach (1939 –

Many of these suppliers are currently engaged in the production of an evolving series of armored fighting vehicles designed to withstand IEDs and roadside ambushes. These technologically advanced vehicles are largely replacing the Humvee and other light trucks in supporting combat operations.

Mine-Resistant Ambush Protected Vehicles (MRAPs)

There was a military requirement for a new and improved Mine-Resistant, Ambush-Protected Vehicle, also known as an MRAP. The previous model of the vehicle, which transitioned from design to deployment in just two years, was not designed to manage the rocky terrain of Afghanistan, and its excessive weight posed challenges for transportation to areas where it was most needed.

The MRAPs are integral to current U.S. military campaigns and are crucial in protecting troops from roadside blasts, which are the leading cause of combat-related death and injury in Iraq. Over 8,000 MRAPs are currently operational in Iraq and 900 in Afghanistan. Recently, the Pentagon announced financial plans to expand their fleet of MRAP vehicles from 2,300 to 17,700 by Spring 2009.

MRAP Light

The U.S. Marine Corps has issued an urgent call for an MRAP light, a vehicle that would provide the same protection as the MRAP, but with enhanced maneuverability. General Dynamics and Force Protection, Inc. are both collaborating with the Marine Corps to determine whether the existing MRAPs should be modified to better meet military needs, or whether an entirely new vehicle is necessary. Both companies are working swiftly on the project.

On September 5, Force Protection, Inc. announced the receipt of a $7.2 million contract from the Marine Corps for the expedited development of lighter MRAP vehicles.

BAE Systems, a British company with a manufacturing facility in Fairfield, Ohio, launched its new, lighter MRAP- the Caiman Light at the start of this month. The Caiman Light is a five-person, 4X 4 version of the 6X6 Caiman MRAP Vehicle, offering comparable protection at two-thirds of the 18-ton gross vehicle weight of the original model.

Several other arms and defense companies are competing for a share of the financial investment, as the military demands both the protection of the MRAP and the maneuverability of its smaller counterparts. Keep an eye on this space for further updates.

Sources:

Defense Update, UPI

Anyway, I went ahead and purchased my grill. And it’s a beauty. In fact, I like it so much I need to tell you about it. Now, before I get into this, let me tell you that this isn’t the norm for me. I’m usually pretty indifferent when it comes to products and brand names, and would never damage my integrity by falsely endorsing a product (and I invite companies of all sizes to just try and tempt me with a very large check to do such.)

Ok, back to my grill. I bought a Weber Spirit E-310. This is my first Weber grill, as the previous times I bought a grill I eschewed the higher price of the Weber in favor of something cheaper (which, I have learned, when it comes to grills, is another name for a piece of @#$%)

Seriously, I must have been through five grills in the past ten years. Each time I bought a new one, I considered the Weber (as it has an extremely stellar reputation), but instead went with some $250 model that I convinced myself was just as good (which again, is another code name for a piece of @#$%)

Well, after yet another afternoon of trying to cook a steak at 375 degrees (the max my el-cheapo brand could hit), and suffering through more flare ups and hot spots than are on the Sun itself, I decided enough was enough, and since I had that economic stimulus check in hand, I decided to go for the gusto and get the grill everyone raves about.

Right away, I could tell the Weber was different, and well worth the money. To begin, it just feels better and is very solidly built. In addition, the burners are intelligently designed so no grease gets on them, the drip catcher is very simple and actually works (something the other grills couldn’t do right), and the propane tank scale is very clever (and really works). But best of all, the thing heats up to 600 degrees in about 5 minutes, and really cooks food well with a nice, even heat, no hotspots, and minimal flare-ups (due to the intelligent burner design.)

I would recommend a Weber to anyone buying a new grill. Yes, they are a bit on the expensive side, but in this case, you truly do get what you pay for.

So there you go, my first gushing product endorsement without any prodding (or, sadly, a check) from Weber.

I must confess that I’ll have to deviate slightly from my regular theme of equipment finance. Trust me, equipment financing doesn’t often inspire thrilling cinema. I should know – I deal with equipment financing daily and rarely come across shady characters, tear-jerking dramas, or opportunities for dramatic car chases. Well, unless we count the break-room incident of 2003, which I won’t delve into.

So, let’s get to it…

Here are my top 5 films with a significant financial element:

#5 – “Boiler Room”
In this engaging tale of a bogus brokerage house peddling sham stocks, Giovanni Ribisi and Vin Diesel deliver standout performances. Ben Affleck also makes a memorable cameo, pre-qualifying a room of aspiring trainees with a profanity-laced tirade.

#4 – “Trading Places”
Remember when Eddie Murphy and Dan Akroyd were comedic dynamites? This story of a stockbroker and a street hustler manipulated into swapping lives is their finest collaboration. As outlandish as it may sound, I’ve heard from brokers that the stock market sequence at the end is quite authentic.

#3 – “Repo Man”
I referenced this film in a previous post because it’s an intriguing movie that sticks with you. A story about two repo men (Harry Dean Stanton and Emilio Estevez) wouldn’t be odd enough, so the creators tossed in an alien in the trunk of a car for an extra layer of intrigue. It’s simply a fun movie, and Stanton’s performance is a delight.

#2 – “Wall Street”
This film has to rank high on any list of finance-centric movies. Epitomizing 80s greed and excess, it coined the catchphrase “Greed is Good” and introduced us to one of Hollywood’s most unforgettable characters, Gordon Gekko (portrayed masterfully by Michael Douglas). The father-son duo of Martin and Charlie Sheen also deliver sterling performances. Moreover, I’ve heard that the film’s depiction of the stock market is remarkably realistic.

#1 – “Glengarry Glen Ross”
This excellent film delves into the inner workings of a real estate office selling investment properties and the beleaguered agents working there. The premise may sound uninteresting, but I assure you, it’s anything but. The movie features an unparalleled cast, including Jack Lemmon, Al Pacino, Alan Arkin, Ed Harris, Kevin Spacey, and Alec Baldwin, whose single scene is downright unforgettable. A fantastic movie, all in all.

Chances are you’ve seen at least a few of these films. But if there are any on this list that you’ve not yet watched, they come highly recommended from the Lease Guy. Enjoy your movie night!