Sometimes I get a thought in my head and it takes several different directions. I’ll write a post about it, then I think of a different angle on the same thought, and I’ll revisit with another post. This is one of those times.
Recently I posted about financing equipment and how a lender saying “yes” is very validating to a business owner. It means their visions of growth were real and that a lender looked at their company and agreed it was time to grow.
Well, I want to take that same thought and go back in time a few months. When does that business owner realize it’s time to grow? What is the catalyst?
To us, as equipment lenders, the answer is pretty obvious. It’s when you realize adding or upgrading a piece of equipment is both necessary, and more importantly, profitable.
It’s when the phone rings and someone wants to do business with you but doesn’t because you can’t meet the demand. Maybe they needed land clearing and you couldn’t schedule them until next month… but if you had another backhoe, you could do it tomorrow.
Maybe you’re hearing customers would like better/faster delivery than the third-party service you are using, and you realize that your own delivery truck could change everything.
Maybe there’s a new medical process in your discipline, but your office doesn’t have the new device yet. It’s expensive for sure, but the phone is ringing off the hook. Some quick math says the revenue it adds will pay the monthly payment twenty times over. That’s what we call a no-brainer.
I’ve outlined only a few industries above, but you get the point – whatever your business is, there’s an excellent chance that adding equipment is the first way to scale up. I would say “adding people” also, because more people are usually needed to run the additional equipment… however, we’re an equipment financing company and not a personnel or temp agency, so let’s stick with the gear and leave the people stuff to others!