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Are You Achieving Your Business Goals?

Filed Under Finance News

Business equipment finance plays a very important role in the achievement of business goals for many small to medium sized businesses. Whether it be restaurant equipment, beauty or hair salon equipment, or bakery equipment, it really doesn’t matter. All businesses are different but the equipment purchasing process is fundamental to the achievement of business goals.

I came across an article recently which I thought had some interesting pointers in regards creating business goals. The article by Megan Tough, entitled ‘How to set business goals (big hairy ones!)‘ was published on the 19th May 2006 on the website - Loving your own company, Flying Solo (www.flyingsolo.com.au).

In the article, Megan introduces the concept of the Big Hairy Audacious Goal! (BHAG). Megan says that the BHAG is the goal that really stretches you to think differently about the ways in which you do business. Its the goal thats going to help transform your business.

On reading this article it became clear to me that the purchase of restaurant equipment, beauty or hair salon equipment, or bakery equipment (type of equipment really doesn’t matter) for many businesses becomes part of their BHAG. The new equipment you bring into your business has the potential for transformation, for productivity increases, for reduction in overheads and for some, the possibility of replacing manual tasks with more automated ones. Equipment purchases are a BIG DEAL.

Megan Tough makes a number of other important points. Business people need to shake off their beliefs that they ‘can’t do it’. Its these beliefs that are in many cases self fulfilling prophesies. “If you have a mindset that limits your achievements you’ll never get serious about a BHAG.” Megan suggests that businesses proposes challenges like:

• I want to triple my revenue in the next 12 months
• I want to be the best known brand in Australia
• I want to work 1 day per week and still earn the same amount of money

These are examples of the sort of HAIRY goals you might create for your business. Megan then uses the first example (above) and outlines 3 Steps:

Step 1 - Brainstorm Ideas for making more money. These ideas might include new product developments, reducing overheads, charge more, advertise to a different market etc….

Step 2 - Make a list of obstacles and ways you might get around them

Step 3 - Identify what needs to happen for you to be successful ie. build knowledge in certain areas, surround yourself with creative people

There are many things you can do to grow your business and overcome obstacles but you need to give yourself the opportunity to think confidently about the future and about the achievement of what’s important to you.

Megan finishes by saying that “if you don’t set yourself a BHAG, then this time next year you might be wondering what could have been.”

Growth in your business could be just a finance approval away. Making sure you have the right equipment can be the first step to achieving your BHAG. No doc Sales Assist provide finance for most equipment types including equipment for restaurants, beauty and hair salons, bakeries and much much more. We want to help ensure your business is heading in the right direction.

EQUIPMENT FINANCE & BUSINESS GROWTH

Filed Under Business Equipment, No Doc Finance

A business equipment lease can add considerable value to a small to medium sized business. Whether it be for restaurant equipment, cars or trucks, salon and beauty equipment, excavation equipment or retail fitout, the ability to secure this form of finance can be of great importance when looking to expand.

Its often only when you come to needing finance that owners of small to medium sized businesses wish they had been more conscious of keeping accurate and up to date financial records. Many business owners are so immersed in the day to day running and operations of their businesses that the administration side of their operation suffers.

In our experience their are a number of industries where this tends to be more common. Those who operate in the excavation and hospitality industries are amongst the main culprits. Many of these businesses are ‘one-man shows’ and its extremely difficult for these people to find the time to keep their accounts in order. While the ability to maintain accurate records is of great importance in any business, its now possible for business owners to secure finance with little or no financial documentation. Our Express No Doc Business Solution product is aimed at the business person that wants to grow their business but for one reason or another just can’t produce the necessary documentation to satisfy mainstream lenders. Whether it be an equipment lease, rental, or commercial hire purchase - we have an ability to assist.

The productivity of many businesses today is so dependent on having the latest equipment. Without the right equipment a business can go under very quickly as customers or contracts move to suppliers who can cater for their needs more quickly and efficiently. The right equipment can also have significant cost savings in a business as there is the potential for it to replace manual labour or produce larger outputs in a smaller time. The purchase of new photocopier was a recent example for one of our clients. They replaced a copier that was 10 years old with one of the new range of copiers. The copier increased output by 60% and reduced the manual involvement of employees in the office, freeing them up to work on more productive tasks.

While interest rates are very important in determining overall affordability, make sure you are factoring the costs to your business in retaining the equipment you currently have. Lo Doc finance options, while perhaps being a little more expensive, can keep your business afloat enabling you to complete more effectively in an ever changing market.

Practical Lessons In Equipment Financing

Filed Under Business Equipment, Business Finance, No Doc Finance

I recently worked with two clients in assisting them gain finance for the purchase of new business equipment. One client required excavation equipment to enable him to grow his excavation business. The second was a Baker who needed to update some equipment in his bakery.

Both deals collapsed. There are a number of lessons in these two accounts that many of you who anticipate buying equipment in the near future may be able to learn from.

Firstly, I want to say that both of these transactions were approved. Both loans were under a No Doc program and in both cases loan documents were issued to the clients who then decided to ‘pull the pin’ on the transactions.

Lessons:

1. Don’t enter into negotiations with the supplier of equipment without ascertaining your ability to secure finance first. We have often found that better deals can be had once finance is conditionally approved. Suppliers generally take you more seriously and secondly, you are in a much stronger negotiating position if you have confirmed finance. In both of the cases outlined above, the clients commenced discussions with a specific supplier well before securing an ability to attain finance.
2. Know what type of finance is required. There are differences between leases, chattel mortgages and Commercial Hire Purchase arrangements. It is important to discuss what the best options are for your business. In both cases outlined above, the clients had no idea what type of finance was suited to their individual business needs. Speak to your accountant or tax agent before shopping around for finance to make sure you seek out the correct finance type.
3. Do your homework with lenders. It is important that you understand what information lenders are going to require of you. Do you have financials for your business, how long has your business been in operation, do you have a poor credit history, do you have equity in property? These are some of the questions you will need to have answers to. The nature of the answers you give will largely dictate the type of finance that you are able to qualify for (ie. Full-Doc versus No Doc). In the cases outlined above, both clients failed to understand the strengths and weaknesses of their applications sufficiently.
4. Know the interest rates you are likely to pay. Make sure you are aware of the interest rate you are likely to pay under certain scenarios. Full-Doc rates are substantially better than those under No-Doc programs as the risk to the lender is generally lower. It is important to understand what you can afford to make in repayments. Can you afford to pay interest rates in the high teens (or even higher) under a No-Doc program? In both of the instances outlined above, the borrowers were put off by the higher interest rate under the No-Doc program. This showed that they had not listened as this was explained to them at the commencement of the documentation phase and had not understood the financier’s risk associated with this form of finance.
5. Know what the tax implications are. The effect on your tax and GST responsibilities vary according to the type of finance you undertake. Again it is important to seek specialist advice. In many cases there are substantial tax benefits to purchasing through leasing or commercial hire purchase arrangements. It is imperative that you understand the implications for your business. While the repayments may be high, you may find that a good portion of these costs can be offset against your tax, therefore reducing the overall liability.
6. Get sound advice on the documents. As you are entering into a contract, make sure you understand what you are signing. Having said this, make sure you seek assistance from someone who has experience with business equipment finance. This form of finance is different from mortgage or personal loan finance and as such you should seek the assistance of someone with experience in the area. In both instances, clients were discouraged by advice that was incorrect, and given by people with limited knowledge and understanding of business equipment finance.

Taking notice of the elements outlined above will help ensure that you purchase equipment for the best possible price, that you choose the finance product that’s right for your business, and the transaction proceeds smoothly.

Many people spend a lot of time in organising finance for the purchase of their business equipment. ‘Time is money’. Do yourself a favour and understand what you are entering into. Doing it right the first time could save you thousands.

The beauty of leasing equipment

Filed Under Finance News

Its a good time early in the new year to again look at the benefits of small business finance particularly in regards the use of business equipment leases, CHP and other forms of finance.

A recent article by Charles Bligh (The Beauty of Leasing Equipment) which appeared on the News.com.au website (October 8, 2007) provides a very good summary of some of the important benefits.

Charles highlights the need for business to keep up to date with new equipment but at the same time retain their cashflows and credit lines. Leasing and other forms of business equipment finance provide a good way of achieving this. Some of the key benefits highlighted in the article include:

* Maintain Cashflow

* Enable your business to keep a technological edge

* Enable your business to implement technological solutions quickly

* Often allow for green disposal

The No Doc leasing solution enables businesses without financials to still benefit from all that leasing finance has to offer. Whether it be restaurant equipment, computers, excavators, motor vehicles, products for the beauty industry, or other equipment, the No Doc finance option may provide you with the opportunity to invest in the equipment that you need to grow your business.

Australians - The Most Entrepreneurial

Filed Under Finance News

I’ve spoken to a lot of people over the years about their businesses and about the reasons why they are in business.

I have found that more often than not the reason why people start a business is because they want to control their own destiny, improve their lifestyle or improve their financial situation. For many people it’s a combination of all three.

The No Doc Sales Assist finance program can help people along this path by enabling new businesses to purchase the equipment that allows them to get their businesses off the ground.

I came across an article over the last couple of days that reinforced the entrepreneurial nature of Australians and their drive to start up new businesses. The article by Josh Robertson that appeared in Business Sense, entitled ‘Why we are the most entrepreneurial’ explores some of these issues further and reports on a recent study that was done that showed that Australians are the most entrepreneurial in the developed world.

This is well worth a read!!

Business Equipment Investment

Filed Under Business Equipment

I recently came across an article entitled ‘Lunch with an entrepreneur’ which appears in the November 20, 2007 edition of Smart Company.

The article talks about the experiences of John Randel who built his recycled rubber business (A1 Rubber) to a position where it is now turning over $7.2 million and employs 25 staff. John talks about his investment in technology to grow his business:

“You can actually make twice as much product with a big machine than you can if you built a small machine. So we tend to over-engineer everything and make it bigger than is needed, and therefore you can have a lower cost base from a labour perspective because you can make twice as much as anybody else. So our machinery is certainly the biggest in the world for what we do.”

Speaking with a number of large suppliers of bakery equipment recently, it hit home to me just how investments in business equipment can improve productivity in small to medium size businesses.

Suppliers are reporting large investments in equipment aimed at removing the manual labour component of the manufacturing process. Some machines are saving the costs of 1-2 employees which in turn is improving the productivity of many businesses in this sector. The move to replace staff with business equipment investments is not only the domain of larger businesses. More and more small businesses are seeing the need to do this.

Equipment in many sectors improves so quickly and there is a real need to make sure that productivity gains are realised. Leasing and CHP options enable businesses to benefit from the purchase or equipment today, while offering affordable payment options. The relatively short term nature of these finance options also enable businesses to revolve their equipment in line with their business needs and new technologies.

The No Doc business equipment finance product provides a great opportunity for businesses to invest in themselves. No longer do you have to present reams of documentation to support your application for finance. We provide finance to businesses with no financial information required!!

Contact No Doc Sales Assist for a quote today. Phone 1300 792 921

Small business finance, Commercial loan lender, Equipment finance leasing, Restaurant equipment lease, Commercial vehicle loan

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