by Brian McKay
One of the many benefits of modern business is the ability to start without much. As long as you have a good idea and an online presence, you can start pulling at least a small profit from day one. There’s no more of this saving up for years or begging the bank for a business loan. You only need to pay the small fee for a website domain, and you’ll be laughing. At least, you will until it comes time to expand your business.
The fact is that no business looking for success can stay this small for long. Before you know it, your tiny home office will no longer accommodate all your business files. Your single pair of hands won’t be able to reply to every customer comment. And, perhaps most important of all, you won’t be able to keep up with increased production demand. The moment those orders start racking up, you may as well kiss goodbye to any chance at making a real go of things.
That’s why, at some stage, you’re going to need to consider expanding everything, including manufacturing. If you’re to stand any chance at keeping up, you need to switch from manual to mechanic production. The downside to that being, of course, the cost of the machines you’ll need. That stuff isn't cheap, and even your starting profits won’t stretch to cover them. That’s why many entrepreneurs cut costs rather than taking out loans. It’s a good idea in theory, but you may well be best off biting the bullet and owing that money elsewhere. If you don’t believe us, keep reading to find out the downsides of attempting to cut costs here.
You put health and safety in jeopardy
As an employer, your first concern should be the risk cheap equipment poses to your health and safety. This should always be at the top of your priority list. Yet, second hand or substandard equipment is nowhere near as safe as brand new investments. A knock-off machine, for instance, is far more liable to malfunction than a new design could be. When you buy machinery second hand, you won’t even have any way to know whether it adheres to health and safety. All of which could lead to severe lawsuits and lost team members if you aren’t careful. Even if you think a machine like this would function well, then, you should think again. New is always better for keeping your working environment as safe as possible. It is also beneficial to the mental health and productivity of your employees.
Your products wouldn’t be their best
If that isn’t incentive enough, consider that cheaper machines often cost less for a reason. More often than not, affordable alternatives like these won’t achieve the precision you’re after. Given that you’re the new business on the block, that’s not what you want at all. You’re out to impress right now, and your substandard production equipment isn’t going to do that. Wonky lasers and knives with jagged edges are sure to send an unprofessional image of you into the world. By comparison, buying brand new machines or using tools like those found here is sure to provide a much more professional finish. That, in turn, will increase the chances of repeat custom and word of mouth marketing. That, in itself, could more than cover those extra equipment costs.
You could end up paying more
Speaking of covering costs, the last risk you face is that of paying more in the long run. We thought that might make you sit up and take notice. The fact is that saving money is crucial at any stage of business, especially during these early days. Heck, that’s why you’re considering cutting corners here in the first place. Before you make the mistake, consider that cheap options could cost you more. After all, second-hand machines are far more liable to break. Both options also bring the risk of having a shorter shelf life than a more expensive model would. As if that weren’t enough, the decreased quality of your products could even lead to lost custom. Add that all together, and you’re facing a whole load of lost profit for a small initial saving. We’d argue, then, that it makes more financial sense to bite the bullet and do this the expensive way in the first place. Even if you have to take out a loan to achieve the goal, the increase in your profits would cover that difference in no time. All without the issues you can expect by doing this the hard way.
