How can buying vs leasing gym equipment provide your business with such different experiences in their start?
Arguably, one of the biggest challenges in anyone’s career is launching a business, mainly because running a business puts anyone in an entirely different level, and they only have one shot to make it work. Building your own company involves more than just knowledge in your trade; it involves managing finances, advertising, marketing, hiring and watching over employees, and making countless decisions that can make or break your business.
Running a business is extremely complicated and you need to be as well prepared as possible, but perhaps one of the most important parts of your company is the finances, because everything ties back to how much you make versus how much you own.
Utility bills, rent, payroll, invoices, fees, equipment, and more are waiting for you in the form of expenses, and handling all of this along with startup costs without your business making money is not easy and involves good financial management.
When your business first starts, determine how much you spend on what can be difficult with only your capital to use, but there are avenues that can make your life easier.
Starting your very own Fitness Center
One of the more difficult businesses to start up can be a gym, almost solely because of equipment costs; however, fitness centers provide a service in exchange for membership, meaning you can retain quite a bit of business. The goal of many gym owners is to build and expand on a fitness community, a place where people can go together to work out; however, making this vision a reality can be something else entirely.
You want your fitness center to offer quite a bit as far as services, from variety in your weightlifting equipment to enough treadmills and ellipticals to be used on a busy day to classes for yoga, dance, and more. The difficult factor in just about any of these is equipment; thinking about just the cost of treadmills, there’s no way you’ll have the capital to afford everything you need.
That leaves business owners with a couple options: they can either buy equipment with a loan or financing plan, or they can lease their gym equipment. There are advantages and disadvantages to both purchasing and leasing any equipment, especially gym hardware, so in the cases of buying vs leasing gym equipment, which offers your company a better shot at being successful?
Advantages in Buying vs Leasing Gym Equipment
The fact of the matter is, there’s no perfect world where purchasing is absolutely better than leasing and vice versa; it all depends on your need, and the fact of the matter is most businesses will do both to get the hardware they need for their company. The advantages to buying vs leasing gym equipment come through the little benefits each offer that can give you an edge when starting your business.
For example, when purchasing your equipment, you can claim it as a business asset, allowing you to get some funding, and leases give you the benefit of a tax deductible. As far as upsides and downsides to buying vs leasing gym equipment, it all depends on where you get your equipment, so doing your homework and picking who you want to give your hard-earned money to can really pay off.
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Some leases offer you benefits like getting upgrades on your equipment every so often, so you get the best deal possible.
What are the Downsides to Buying vs Leasing Gym Equipment?
The fact of the matter is, purchasing is normally only ideal for smaller equipment that you can either pay for right out of pocket or get a small, manageable loan on, because owning equipment becomes a burden over time that you may not be able to handle. Over time, all equipment deteriorates to the point where it’s going to break or become such low quality that it needs to be replaced, and if you can’t easily afford to replace it within a few years of buying it, that presents a problem.
If you purchase your more expensive equipment, replacement can become very challenging, and this can be made worse with the looming interest rate on a loan. Leasing is more advantageous in this sense because you deal with a flat monthly rate and get the equipment repaired for you if something goes wrong, making your life much more convenient.
However, leasing is a contract, and if you end up getting a lease that doesn’t suit your business, it can end up hurting you more than helping you. There are advantages to both buying vs leasing gym equipment, but you’re generally better off leasing with the heavier, more expensive equipment, as long as you make sure that the lease contract is suitable for your business.
Doing your research can mean the difference between your business having a rough time from day one and your business getting the most successful start possible. To learn more about buying vs leasing gym equipment, click here.