Stage 1: Assessments & Research

Stage 2: Strategies

Stage 3: Law & Taxes

Stage 4: Facilities & Insurance

Stage 5: Calculating Costs

Stage 6: Financing

Stage 7: Finalizing

Course Offerings

Step 8: Choose Equipment

The Concept:
Not only do you need people to make your business grow--you also need equipment to make your product or to help the office run smoothly. From pencils and paper clips to computers and vehicles you need to acquire equipment with an eye toward costs and output.
 
What you need to know:
The equipment you need depends on the type of business; at a minimum, a business requires office supplies, security systems and signage. Create a list of all equipment you'll need and obtain price quotes from multiple vendors in each equipment category, using these quotes to estimate your start-up costs for equipment.

An important consideration is whether to lease or buy your equipment. If you are well funded, outright up-front purchasing can make more sense. But few startups can afford an initial outlay of capital that might be better spent on product development and advertising. Leasing is one method to acquire needed items, often for less money-down and lower monthly payments than if the items had been bought with a traditional loan.

Certain leasing options allow a business to avoid maintenance costs and either buy or walk away from the equipment at the end of the lease term. While the long-term cost is higher, leasing gives a business time to grow and afford the cost of equipment. Nevertheless, there are many leasing options with varying benefits and pitfalls so any decision to lease should be backed up by a great deal of research, comparison shopping and legal consultation.

Points to consider:
How fast is production of the product or service? Can desired quantities be produced?
What is the cost per product at various production levels?
Can the equipment produce the needed quality of work?
How long should the equipment last?
Should you purchase new or used equipment?
Should you buy or lease the equipment?
What is the initial cost? Upkeep and maintenance costs?

Is the desired equipment available?
How can equipment deficiencies be addressed?