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Spare No Expense When It Comes To Your Business
I once worked for a very large sign company in Las Vegas. My department constantly struggled with our equipment. The hardware was several years behind the times, constantly breaking down, slowing to a snail’s pace or freezing up completely.
Of course, no one outside our department understood the problems these situations created. The salesmen wanted what they wanted yesterday. When we asked for upgrades, we were always told, “It’s not in the budget,” or, “Maybe next year.”
Sometimes management would tease us. They’d ask us to submit a report on what we needed, why we needed it and how it would improve processes. They’d then either forget about our reports or buy cheap equipment that didn’t fit our needs at all.
The company saved money this way. Well, they may have saved money in the short term, but our outdated hardware and software cost them in the long run.
It was a frustrating situation for us workers.
Limping to Scrimp
James tends to spare no expenses when he needs something. He’d been biting his tongue for a long time, questioning why I preferred hobbling along in frustration using an outdated computer that thwarted me with every click.
When you’re self-employed, you’re very much aware of income. It’s either feast or famine in the freelancing world, which means that when business is good, freelancers may tend to stockpile for when business slows down.
It’s tough to part with cash when you feel you’re getting along with what you have.
My equipment had been giving me plenty of warnings that I was long overdue for an upgrade. Programs took forever to load, error warnings appeared, various menu tools wouldn’t display, the computer would freeze and the comment, “Hang on, I have to reboot,” became frequent.
Finally, my computer decided it couldn’t open Adobe Illustrator any more.
I sat down and figured out how much time it actually took me to do a project on one of my computer’s good days. I thought about how many work hours were wasted watching that damned hourglass twirl while I waited.
Too much. I was reminded of that sign company, scrimping its way while our frustrations grew. My fear of the freelancing famine was costing the business – and hurting me.
Dependable Equipment is Priceless
Delaying expenses for your business may end up costing more in time and money than buying what you need immediately.
Making due doesn’t cut it, whether with personnel or equipment. Patch a problem long enough and all you’re left with is a huge wad of duct tape.
It’s a smarter choice to upgrade, even if what you buy isn’t the most recent version or the latest high-end technology. Upgrading progressively isn’t a band-aid patch. It’s a set of steps to reach the goal of equipment that runs better, saves time and also spares a few headaches.
Upgrade and Save with Refurbished Material – Sometimes
If you need to upgrade equipment, check for refurbished models. There’s often nothing wrong with these items, but then again, you could end up with a lemon and spending more than you intended when it breaks down.
Most of the time, the equipment might have a small scratch on the casing or have personalization for a customer who ended up not buying the product. Sometimes, only the box was opened. Everything else is untouched.
By law, manufacturers have to state that the item is refurbished, even if the item is in perfect condition. You could easily save yourself money – sometimes even a few hundred dollars.
But as always, buyer beware. Ask questions.
For example, I decided to buy a refurbished computer because the manufacturer gave me some great deals. Within 24 hours, all I was looking at was a blue screen, and there was nothing I could do about it. Several unproductive days later, a visit from Geek Squad turned up bad RAM. I’d have to ship the computer back, and I ended up buying locally regardless.
Stay Ahead of the Competition
Having good equipment is necessary for small businesses to stay ahead of the competition. The most recent equipment and software helps you to keep up or move ahead of the pack. When your equipment is outdated, you only limit yourself and your business.
Contemplate financing equipment purchases, too. Many companies offer deferred payment plans that give you anywhere from 6 months to a year before you need to make a payment. Keep in mind that it’s a smart idea to bank up the full payment amount and eliminate the debt when that day comes.
Find room in your budget for the right tools for your job. It’s a tax write off and usually an essential part of getting the job done better, faster and to higher customer satisfaction.
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Nowhere is this more true when it comes to computers. Every day your machines are down costs you money and opportunity.
I’m so glad that basic office computers have become so inexpensive that it’s practically cheaper to get a low-end box for the price of one of those in-store extended warranties.
“Find room in your budget for the right tools for your job.”
This sentence resonated with me the most. You don’t have to have the best tool but you do need to identify your needs first and then secure the equipment that will do the intended task to your satisfaction. You have very good advice here in this post – first hand experience will do that for you.
When I started out freelancing and bought a second monitor to attach to my laptop, I made the mistake of going for pretty much the cheapest I could find on ebay. It’s useable, but I only switch it on when I’m doing something that would be a *real* pain without it, as the colours are off, the screen won’t operate at a refresh rate over 70hz, and it makes my eyes ache.
I’m probably going to end up paying for a decent one at some point, which I’m kicking myself for not doing in the first place!
Ali Hale – Alpha Students last blog post..Being young – make the most of it
Right on the money..
One of the early purchases I made shortly after I started up was a postage meter.
I don’t send out a tremendous amount of mail – maybe a dozen invoices a week, but I wanted it both for the convenience of not having to buy stamps and for being able to dial in the exact postage (back then I was often mailing disks and cd’s too). But more than that, I wanted it for the professionalism it conveys – metered mail says “yes, this really is a business that sent this invoice”.
Computers, of course. I drive my wife crazy with new computers, but they are an absolute necessity for my business.
Web site hosting is another place I do not stint. My site activity is not so large that I need a dedicated server, but it’s too large for free or cheap hosting. I pay for reliability because that site is critical for my income.
Communications: we’re long past this now, but I had a “bag phone” the minute they became available and carried a pager at the same time. I subscribed to an answering service so that my customers could always reach a human who could reach me. Cell phones have made all that unnecessary.
Back then, I had multiple phone lines too – we used modems, no internet then. Because this was before cheap phone charges, I had a nationwide 800 number for the convenience of my customers.. all these things were because I was running a BUSINESS, not a hobby.
Your infrastructure should meet both your needs and those of your customers.
In light of the other recent thread, of course you may not be able to afford everything you “need” immediately. But those things need to be in your budgets to be purchased as soon as it is possible.
Don’t I know it.
My problem isn’t the spare no expense part – my problem is getting support from Mr. Ng, who doesn’t get what I do or why it’s necessary to spend money. It’s tough living with someone who not only doesn’t get it, but hates reaching into his pocket for anything.
Nice post, Harry
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@Harry – you reminded me of one of my first employers who was incapable of seeing beyond the visible costs of ‘buying stuff’ to the cost of employees being unable to contact customers or twiddling their thumbs while their machine crashed, rebooted and crashed again.
@Deb – I have the opposite problem with Mr S! He always wants all the latest gadgets for home and work and it’s me putting my foot down about whether we need them. However, with both of us working from home this week though I think we’ve both realised a second business phone should be our next expense.
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the first computer i ever bought was a huge gateway with all the bells and whistles. 5k basically for a training computer…bad mistake. my son and i managed to kill it within the year. now even though we are a bit more tech savvy, i go to a local used computer store. the last processor i bought was a year old off brand refurbished one for 200 bucks. it has most everything i need and works great! i’ve been using it with no problems for almost two years now and may never purchase new again
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I find I have critical tastes when it comes to expenses. The point is not to get the most expensive tools for the job, but as Harry says, the right tools for the job.
My first question is, “Is this necessary?” If so, then how much of it is necessary, and what will be the returns if I procure the item? If there are good returns, then full speed ahead, no holds barred. Whatever I pay out, I’ll get back in returns somehow, so it’s worth it. That’s a key understanding entrepreneurs need to have.
If it’s a vanity thing, then I have to think twice. I might *want* the latest telephone technology, but hell, I hate phones, so I’ll get something good, solid, serviceable, and that’s it.
I won’t skimp, though, or do without. No sir.
I broke down and bought a MacBook Pro this summer. it’s the best investment I’ve ever made for the business. It’s like driving a Porsche after bumbling along in a Chevette for years.
I only wish I’d done it years ago.
This really great writer I know suggested I get Word 2007. He swore I would love it, but I was using Open Office and thought why buy the cow…
Now, I couldn’t imagine writing without Word. It would have saved me tons of headaches and time if only I’d listened sooner.
@Dave: Loosing time and money are the first thing that comes to mind when I have technical difficulties over here. Whether it’s the computer or the internet, I have to have them functioning and reliable, so in that respect I don’t mind getting the very best I can afford.
@Mark: Thanks Mark, but I have to give my parents credit for that line of thought
Growing up we never had top of the line or name brands, but we had good things and were taught to take care of them so they lasted.
@Ali: Ooo, yes, monitors. High quality monitors are a must for my line of work, James not so much. It’s always a point of contention when the three of us are reviewing new designs we’re working on. Sometimes having top of the line is a disadvantage to Charlie and I because not everyone is going to be viewing the sites on HD or digital monitors. I have to look at sites on the five different monitors we have in the house here to get a good idea of how it would look for the average person.
@Anthony: Totally agree. Upgrade as soon as possible if you can!
@Deb Ng: It is difficult when people don’t understand that what might look like a luxury to them is a necessity for you.
@Rachel: I think that’s a universal frustration for many employees. My roommate still works at that sign company. He’s a structural engineer and uses CAD. Upgrading that software for a total of 4 or 5 engineers is pricey. So is the computers they need to run it. I think they’re still fighting to get the right equipment.
@James: No really, that 42″ HD flatscreen and surround sound is crucial! C’mon Charlie, back me up on this…
You said it James (and Harry). My thoughts are you need to analyze. If you need it, get it. If ultimately it will make you more money or give you some other benefit like time, spring for it.
But if it’s something that would be “nice to have”, reconsider – especially during rough times like these.
Harry brought up a good point about the RAM problem. When times are slow like they are now you really have to watch your budget. Examine what the real problem is and fix it. Many times this doesn’t involve replacing everything.
If computer speed is the problem, it might be something as simple as splurging $35 for more RAM.
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Along the lines of RAM, memory and not purchasing more than you need, I sometimes do go above and beyond. I always get more RAM than I need and a faster processor than my software tells me I need.
Technology is always changing and software is getting more and more advanced and you’re NEVER going to be disappointed with massive computing power/speed. Real life example: a few years ago I bought my current Mac. There was a model that was an obvious “fit” for me. It had what I needed and would have saved me a few bucks.
I didn’t buy that one. I got the top-o-the-line model. Fast forward a couple years and I discover there’s some software I really wanted – in fact NEEDED – to do my job well and stay competitive. It wouldn’t have run on the lesser Mac, at least not as well as it does on this one.
So yeah. Belly up and throw another fistful of money into your infrastructure if you can. Your infrastructure is there to make you money, so do what you can to ensure your own production.
*throws fistful of money at Charlie*
*spends it on a bunch of really really nice ties*
I couldn’t agree more, Harry. Nothing is more important than our minutes; every one wasted, sixty seconds forever stripped from our souls. I work on two computers, one upstairs and one down. The angel and the devil. I’ve found that it’s often better to wait. If I don’t have access to the faster computer, unless it’s something super pressing, it’s better just to wait until I can do the job efficiently.
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For me its a fax machine. I keep thinking they’re on the way out like phone-cords and dial-up but then every couple of weeks some client wants to fax me something in. I have to dance around the process of scanning and emailing. Pain in the butt. I ought to grow up and get one.
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Excellent post. The old adage time is money is never truer or more applicable than having the right tool for the job. I’m nearly due for a new computer myself and my main hesitation is that, well, I’ve grown attached! I know there are better and faster machines out there, though. A shopping trip maybe this weekend?
@ Charlie – you realize of course by the time it took you to write your comment your computer became outdated! LOL
I don’t make any money off my blog, which I hope to use to launch my business. I forget to put my money where it counts. I scrimp on stuff I shouldn’t, so I finally had enough and I’m getting my website redesigned and after all the kinks are worked out I’m going to have Men with Pens do a review.
@WriterDad: Yeah, I kinda felt that way after I watched Pirates 3. Backups of equipment is a good idea. I have the new comp, the old comp (which still works and would do in a pinch), the laptop and my roomie’s comp…and if I REALLY had to, I could drive across town to use my parent’s comp.
If your old equipment is still usable, definitely don’t toss it. It’s good to have a stockyard to scavenge parts!
@Chris: I was attached too, and fearing Vista and the thought of transferring all my programs and stuff. Hmm…there’s a post in that…anyway, let it go, sometimes it’s just better to go shopping!
@John: Hell, I’ve had mine for nearly 24 hours now and I’m sure it’s already outdated!
Absolutely.
I’d been a PC user for the lonnnnnnngest time, dealing with what people has come to accept as “normal”: blue screens of death, frustrating-oh-c’mon-I-have-to-do-what?! routines, etc.
When Apple made the switch to Intel, I made mine.
Haven’t looked back, and have saved tons — and I mean tons — of time. For instance, upgrading a new hard drive in my Mac Pro tower? 5 minutes.
Oh, and I got a refurbished model to save moola. Other than a sticker on top which I removed, you can’t tell me it wasn’t brand new!
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@Nez: Ahhh, I envy you folks who buy refurbished goods and have everything work out just fine!
I’m afraid I have to admit I like my PC. Vista isn’t as much of a hassle as it was made out to be, the only thing I lost was my scanner, which wasn’t compatible with the 64 bit.