How can you determine the best way to get equipment to start a bakery?
Bakeries are one of the oldest and most enjoyable types of food industry businesses around, combining creativity with baking products to create delicious different foods for people to purchase. Bakeries are also great in the sense that they’ve been used for countless different types of functions, catering to events like weddings, celebrations, and meetings with a variety of enjoyable foods.
With the right baking skills and a good business sense, you, too, could open a successful bakery and reel in a generous customer base for yourself along with various events and such, creating a good, long lasting business. The trick is all in the finances; even if you’re good with baking skills, you need to be able to know how to pick a good location for your business, create a setup that attracts customers, market your business, and balance up finances.
Everything ties back to money in a business, and this is often where business owners meet their demise and are limited to what they can do. They want only the best hardware so they can create the best food for their customers, but there is a balance between equipment price and equipment quality that many business owners struggle with.
There is an alternative; if you’re looking for the best way to get equipment to start a bakery, you may want to look into leasing. Many business owners fear leasing because of the horror stories they may have heard, but leasing is all about the lease you get, and compared to buying, it may be your best option if you’re looking into acquiring equipment to start a bakery.
Should you Purchase your Equipment to Start a Bakery?
Everyone likes to own something, but business owners love being able to own their own business. They control their hours, their pay, and everything else, and can set everything up the way they want.
However, there are circumstances where business owners don’t get full control over their company, and this is the case with equipment. In a perfect world, you’d pay for your hardware and it would last and nothing would go wrong, but obviously that’s not the case, and that’s where equipment becomes a liability.
First off, there are benefits to purchasing equipment besides ownership, mainly the fact that hardware purchased for a business can be claimed as an asset, and you can get a percentage of the cost of a piece of equipment paid for. However, some equipment in bulk (which will be a necessity for most businesses) rings up a price too high for business owners to pay, even if they claimed it as an asset.
If this happens, they’re stuck with a loan, and they’ll have to pay everything back plus interest down the road. Considering you’re just starting a business, high loans are an incredible risk, especially when you’re taking that risk on equipment.
Again, equipment doesn’t exist in a perfect world, and it’s a fact of the matter guarantee that within a few years, hardware will either break down to the point where repair is too expensive and too temporary to consider, or it will become outdated by newer technology.
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Considering the advances of technology and the shift in the supply curve caused by technology, both of these cases make it so, within a few years, you’ll have to buy the same hardware all over again in order to have hardware or be able to keep up with the competition. This amount of spending within a few short years is simply too much and exactly the kind of thing you want to avoid.
Leasing your Bakery Equipment
With your business, you need good equipment, but you also need it to be inexpensive; the best solution is through renting your equipment so you pay less and still get a good setup for your business. With a lease, the big advantage is the cost and what you get for it: you pay a low flat monthly rate instead of a high up front price, and you can set up your lease contract to contradict downsides that are found in equipment over time.
You can get upgrades on your equipment if you finish a lease and start a new one, and there are ways to get faulty hardware replaced/fixed without paying ridiculous costs that are outlined in your contract.
The trick is to make sure you get the best leasing contract available; a lease can be an advantage by providing you equipment to start a bakery at a low cost, but you need to do your research and make getting a lease an asset by picking a lease good for your company.
To learn more about leasing equipment to start a bakery, click here.