Saturday, 23 November 2013

Mansfield Earthmoving – Hiring Vs. Buying

You might think that you got the raw end of the deal with you doing all the hard work while your boss seems to nestle comfortably in his air conditioned office all day. But the truth is, business owners, especially those with smaller ventures, have too much on their plate. On one hand, they need to ensure that the materials, tools and equipment their personnel need to perform their tasks are readily available. And then on the other hand, they face the difficult task of ensuring good cash flow to ensure the viability of the venture, not only because it is their source of income, but even more importantly, because the workers and their families depend on them.

In the construction industry, one of the dilemmas faced by owners is whether to buy their own equipment or hire them out, whether for short term use or for a longer period of time. For construction firms in Mansfield, earth moving equipment is essential to the performance of several tasks. Having the equipment readily available will make them more competitive in getting more contracts, be it in the private or public sector.

Of course, if you are just starting out, you will have to carefully weigh each investment that you will make and look for other viable alternatives, including digger hire. Mansfield construction firms should follow this rule of thumb: If the equipment is not going to be used at least 60 percent of the time, defer making a purchase. Otherwise, make the necessary preparations to purchase such equipment. Of course, business owners should not simply look at their present needs. Rather, they should factor in the future as well as the growing needs of the firm and their personnel.

Do your homework and look at several factors involved in both purchasing and finding earth moving hire. Mansfield construction firm owners should know that rental expenses are tax deductible while an outright purchase of equipment is not deductible on the year the item was bought. You may also have to look at the depreciation of the equipment and how that plays out when you have to upgrade your equipment and sell your current one. With rental, you do not have to bother with these as the rental company will absorb the impact of these factors and not your business. Also, if you are working in other areas and not locally, you will have to understand that moving your own equipment from one location to another will involve transportation costs. This may mean buying your own vehicle or renting one to transport the equipment to the new job site.

About the Author:
Sarah Miller is a business consultant by profession and a content creator, writer and blogger by passion.  She had help with this article from http://mansfieldplanthire.com.au/
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