Archive for March, 2009
Lease Vs. Own
Lease Vs. Own
Owning equipment vs. leasing equipment is always an important business decision. Each firm or company is faced with different set of financial constraints which will impact their decision. Market fluctuation in the specific industry often helps aid the decision.
There are several factors that can be considered when buying vs. leasing equipment. This can be decided by considering rental or machine costs per day as well as number of days the machine will be used. Consider the acquisition cost depreciation rate and cost per year and resale. Finance amount length and rate to be computed of the lease or purchase. Also transportation and maintenance cost associated with the operations of the purchase.
There are advantages to leasing equipment such as a much lower initial expense. Initial cash flow can be significantly less due to common less down payment money. Lease payments are tax deductible also. The payment terms can be very different between leasing and owning. Often the leasing route can yield more lenient terms. In an industry that is rapidly developing and constantly requires new machinery leasing may be a better choice. The resale on something such as electronics when new technology is being developed is often very low. Buying a piece of equipment that constantly needs to be replaced is often not a good business endeavor. Maintenance of the leased or rented equipment often saves money due to the rental companies requirements to fixing the problem.
On the contrast there are obviously flaws or disadvantages to a leased piece of equipment. The initial cost may be less to lease but the long term cost of leasing is usually higher then loan to buy. And instead of using the tax deduction that comes along with the lease of the equipment there are incentives for newly acquired assets. Signing into a new lease can put large restraints on the requirement to see out the lease term. This may force you to continue leasing due to the fact that at the end of the lease the equipment is not yours. They can offer lease to own terms which can be good for a young business that need the liquidity of cash on hand.
Buying equipment obviously has its disadvantages as well that include the higher initial cost. As stated with the advantage with leasing buying equipment puts you in a situation of owning the equipment. Often the depreciation with certain types of equipment is very large and the salvage value of the piece is very low. This can be due to several reasons including advancement of the product or very high wear on the machinery.
The major advantage of owning the equipment is the fact that the equipment is actually yours at the end of the loan term or purchase. You can do what you choose with the equipment. Along with this can come more or less investment capital. When initially purchasing the machine the demand for the constant uses of the equipment may have been necessary. Often natural swings in the economy and changing industry trends may lead to lack of necessity of the machine.
There are issues that must be considered when there is an acquisition of a new form of machinery. There is no right or wrong answer to the question of lease vs. buy. Each company must decide what is right for the job requirements. This can be done using simple accounting style formulas to find which form of equipment acquisition is best for your firm.
Works Cited
http://ezinearticles/?EquipmentFinancingForBusinessAccountingandFiscalSolvencyamp;id=1316028
About the writer: The author has spent over 20 years helping industrial organizations and small business owners get and keep their ideal customers.
Laying It Down: Epoxy Application Step By Step
Laying It Down: Epoxy Application Step By Step
Epoxy coatings are durable and versatile and are used in many industry and commercial settings where performance looks and chemical resistance are a priority. Heres how epoxy is applied by the pros from the pot to the finished product.
Epoxy Application: Prep Work
The secret to a great paint job is found before a single stroke of paint is applied to the surface. Preparation is vital to getting great results. For epoxy application preparation involves choosing the right products and preparing the surface.
Before applying epoxy a painting contractor examines the expected use of the surface and factors in the effects of environment in order to choose the right product for the job. Epoxy paints are formulated for particular tasks and matching the right paint to the project goes a long way to improving the performance of the finished coating.
Once the epoxy product has been selected the painting contractor prepares the surface that is receiving a coat of epoxy. Shot blasting is used for floors and sand blasting for structures. The primary purpose of blasting is to cause a profile. Additional benefits are that blasting can clean the surface of any stains or old paint that might affect the adhesion of the new application of epoxy. After a thorough cleaning and drying the surface is ready for a coat of epoxy.
Epoxy Application: Mixing It Up
Epoxy paints are mixed at the job site. Two compounds one a base agent and the other a curing agent are mixed together in a set proportion. Once mixed the epoxy begins to cure. From the moment the base and curing agent are combined the painting contractor has a limited amount of time to apply the epoxy to the surface.
Epoxy Application: Laying It On
Applying epoxy requires a practiced hand. Like other paints epoxy coatings have an optimum film thickness which is determined by the amount of epoxy applied to the surface. The painting contractor will brush roll or trowel the coating into place not too thick and not too thin.
For a more lasting finish the painter will build up an epoxy application with multiple coats. When applying multiple coats the painting contractor will let the epoxy cure for a certain amount of time before applying a second coat. Epoxy coatings have a sweet spot in the curing process which is most favorable for additional coats of product. Too much curing and the new coat doesnt bite into the previous layer; too little curing and the new coat interferes with the previous layers curing process.
Epoxy Application: The Final Cure
Once the final coat goes on the surface the epoxy application is nearly complete. Now the coating has to cure completely which can take several days. After final curing the epoxy coating is a durable shield for the underlying surfaces.
Epoxy paint is a great product for many industrial and commercial buildings. If you have questions about the capabilities of epoxy paint please contact a local paint and coatings contractor for more information.
About the writer:nbsp;nbsp;Steve A. Parker Sr. Estimator RaiderPainting.com the preferred painting contractor for building owners and facility managers of commercial and industrial properties nationwide. Call 877724.3371 for a free
Estimate. And check out the Raider Painting
Blog.
Joint Venture – Some Ways You Can Use To Find
Joint Venture – Some Ways You Can Use To Find The Perfect Partner
Would you like to increase potential client leads have help launching new products or acquire quality testimonials? Joint ventures or creative alliances are a surefire way to accomplish all three and more. Joint ventures occur when two or more people or business come together for a specific purpose like the examples stated above.
More and more people are realizing the potential and profitability of joint ventures. So the question becomes how can you find potential partners so you too can increase your possibilities and profits?
Here are 3 ways you can use to find the perfect partner to collaborate with.
Partner With a Colleague in Your Field
It is time that we all stop looking at our colleagues as competition and start viewing them as potential partners for profit. Every person has unique qualities and for more details visit to www.jointwebventures.com skills that set them apart from everyone else. And you can benefit from these qualities and skills!
Consider partnering with a colleague that has qualities you admire and compliment your own. Schedule a time to get together and talk about doing a project together. Together you could accomplish a project that becomes successful beyond your wildest dreams and achieve more than you ever would have doing it alone.
Partner With Someone You Share a Client Base With
Who do you know that markets to the same client base that you do? For example if you are a nutritionist you may want to consider natropathic physicians or health food stores.
Brainstorm at least 10 possible business categories and make a list of 35 people within each category. Now it is time to contact each individual with your innovative ideas. When they realize that working with you will help their business grow and prosper they will be delighted that you got in touch with them.
Partner with Someone that You Have Always Admired
Is there someone in your field of influence that you admire respect and would love to do a project with? Set up a time to meet with them to discuss possibilities. Chances are they have always wanted to collaborate with you but just haven’t got around to asking.
Get together and do a brainstorming session. You never know what creative for more details visit to www.jointventureguide.com profitable ideas and ventures you’ll cook up that benefit each of you greatly.
These are just 3 ideas to get you started. What else can you come up with? Make a list of your own ideas for finding creative alliance partners.
There are endless possibilities and ideas for growing your business with the power of creative alliances. Just think Bill Gates began with an idea and a few creative alliance partners. What can you accomplish
About the writer:nbsp;nbsp;www.jointventuressecret.com
