Renting office equipment, a cost-effective solution
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For an entrepreneur running a growing business, there is always a need for expansion. From fulfilling the growing needs of your added team members to improving the current equipment you have, one needs to consider the best solution to make sure everyone has the right tools to do their specific jobs effectively.
The first question that comes to mind is how does one provide the right office equipment for all team members without interfering with the company’s cash flow? Purchasing all the needed equipment, such as photocopy machines, computers or laptops, PABX telephones and anything else a starting-up company needs to get the job done, is sure to break the bank, especially when a company needs to purchase items in bulk. Oftentimes, when a company considers leasing a large number of electronics, it is required to pay a large down payment before the equipment is sent. Service and maintenance costs of said equipment also have to be considered.
When factoring in all the expenses needed to expand your company, you might be tempted to just keep the company as is. But if you want to catch bigger fish, you will need a bigger and better crew to do so. So, what would be the best solution to expand your crew in the right way, while still providing them with the best tools possible and still have enough of a budget to be considered a profit?
Enter the world of office equipment rentals. Renting office equipment is not a new concept as it has been around since the 1950s, but it may be new for young entrepreneurs starting their own business. What first started as a service providing heavy equipment for construction eventually came to cater to the ever-growing, white-collar professionals. The first office equipment rental companies started by providing office furniture and as demands grew, they began expanding to also fulfill technical aspects of an office, such as (at the time) typewriters, telephones, printers, fax machines and eventually computers.
Although owning its own office equipment may seem like a promising outlook for a new company, it does have financial drawbacks one must consider. Besides the first installment that is sure to have a major impact on a company's cash flow, the depreciation rate of office equipment, especially computers or laptops, is quite high. Thanks to the continuing development of the IT industry, a laptop that was considered high-end today may become obsolete in under two years. This is an important consideration for those in the design industry or videographers that need powerful computers. By renting specific equipment for a short term, one can easily update to the latest and greatest units without having to sell older equipment, which can also take time. And because of this depreciation, your investment may not see the kind of profit you expected.
Maintenance is also a factor one needs to account for when purchasing office equipment. Unless you believe that your new employees have the know-how to deal with any problem that may arise from your new office equipment, having a dedicated team is one solution that would mean adding another division to your expanding team. But by renting your office equipment, more often than not, the rental service you choose will offer to handle any major services or provide a replacement. This is a quick solution to keeping productivity in check without any hold-up.
Renting office equipment is not something that is only done by entrepreneurs or start-ups. Many established companies opt to rent office equipment for many of the reasons mentioned above. Most multinational companies have chosen to rent all their computers and laptops. It’s not rare today to see big companies rent copiers and printers instead of owning their own.
And because of this trend, several equipment providers have opted to provide rental services for their equipment. Photocopy producers Xerox and Ricoh now provide rental services for many of their products. Following IBM’s footsteps, Lenovo also provides company rental services for computers and laptops. In doing so, their market grows from medium to large companies to aiding start-ups.
For those looking to expand their company further while keeping employees satisfied with the provided equipment and keeping costs from heavily impacting their cash flow, renting office equipment might be the financial solution you seek.