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Business Start-Up ~ Getting your Accounts/Books Organised
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Published on Friday, 06 March 2015 10:47
The other night at a local Meet-Up (www.meetup.com) we had an interesting discussion about mistakes in business. In particular, one topic was - Whether to pay outright or borrow for stock/equipment?
One business owner gave a situation where he was paying outright for equipment that would be sign-written to advertise another business (he organized advertising for businesses). The issue was that spending $10,000 on the equipment (truck side curtains) took all the spare money the business owner had, while the payment for the advert was monthly over a multi-year contract.
Hindsight showed that it would have been better to get a loan for the equipment, then add his mark-up for the advert and service on top of the monthly re-payments, and he would still have his $10,000 to use for cashflow and marketing.
Have you had a similar experience?
What Better Business Decisions can you share?
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