Skip to content

Call Us! 866-960-0428

Can you afford that new capital investment?

business woman at desk pondering

You’ve got an opportunity to buy a new piece of equipment or a new vehicle for your fleet or to acquire an experienced sales manager to grow your revenue.  How exciting!  But can you afford it???

You may be thinking, “Well, sure, it’s a great price, and I can make the required note or salary payments.”  That is definitely a factor to consider, but what I’m really asking is this…  Do you know what you need your return to be on this investment to ensure that it has a real, positive impact on your performance?

For a piece of equipment that means realistically considering the revenue generating potential (knowing your market data, your own capacity constraints, considering ramp-up time, etc.) as well as the cost of operating the equipment (financing costs, staff costs, downtime costs, etc.).  For a new sales person it means comparing the hard costs (salary, benefits, length of time to reach a productive level) as well as the soft costs (impact to current sales or operating force, “fit” to organization, etc.) against the potential new revenues.

As you consider all these factors, you may decide that you really can’t afford that new capital investment.  However, you may find that you can’t afford not to make that new capital investment!  Either way, the best decision will be an informed decision.

Visit our website (www.tbsi.consulting), then give us a call at 866-960-0428, Ext 702, to discuss how we can help you assess new capital opportunities and support your need for more useful, more meaningful information to grow, groom or get the most out of your business.

Leave a Comment