Out with the Old; In with the New
By Kevin F. Clune, CLP
The year started off with continued uncertainty. Some political issues were resolved but others remain undecided. How will your business be affected you ask. However, a more positive way to phrase the question is: “How will you respond?” In other words, will you be reactive or proactive?
An article posted by Fox News Daily states, “Whether you are planning to finally scratch your entrepreneurial itch or looking to expand a current company, securing capital is vital to starting and growing small businesses.”
Simultaneously, we are told by Forbes that the first and most critical decision we need to make is to pay off some of our debt.
I believe that one can achieve both of these seemingly contradictory goals, and I will speak to this question from the perspective of being in the leasing business.
Regarding the acquisition of capital, this dilemma can possibly be explained and answered by determining the intended use of the capital that you wish to secure for your business. Will it be used to acquire a product that will spur more business sales & income or will it be used for non essential purposes with no ROI? Will the income that is generated by the acquisition exceed the cost of the equipment and, therefore, produce profits?
Concerning the pay off of debt, it might be helpful to analyze your current equipment leases or loans. Can these be upgraded to better functioning machinery and more profitable purposes? Are you paying more for the equipment than it is producing in business? Are you saddled with an automatic renewal or other fees that absorb your profits? You can refer to our new video that is featured in this newsletter, Total Cost Comparison, for more information regarding this topic.
Unlike the Government, businesses in the Private Sector need to scrutinize a decision and answer these hard questions before starting a business or expanding an existing enterprise. Whatever your situation, we at Clune & Company would be happy to assist you in your plans for growth in 2013.
Happy New Year,
Kevin F. Clune, CLP
President
Clune & Company
