The construction industry is one of the most viable to provide a constant stream of projects. There is never enough need to build, build, build – new homes, commercial buildings, offices, resorts, store outlets, restaurants, schools, hospitals, and others. With even more spectacular architectural designs released every so often, renovation projects are also aplenty. If you are thinking about starting a business from home, looking into the path of construction is toward a bright future.
Apart from its promise of good profit, the construction business also does not require considerable capital on start-up. The size of your investment depends on the activities you want to get into or the services you want to offer. And there are various options available, from building to performing repairs, renovations, and other alternative services like demolitions, excavations, and security installations.
To buy or to rent?
A good percentage of the capital investment in a construction business goes to equipment. That’s why one of the pressing questions you need to answer before making a start is whether it is wise to purchase your equipment or just rent it? Honestly, there is no right or wrong answer to that question. You can do either and still consider it the better recourse. There are reasons, however, why people see an equipment purchase as the wiser move.
The benefits of buying
Several factors may influence the benefits of equipment purchase. How frequently you will need the equipment and how you can prorate such costs are some of them.Owned equipment is considered an asset that adds up to the balance sheet. It can be rented or sold to stir up your operational budget. It can even help you survive during harsh times.
By keeping a stable of tools and equipment based on the construction activities you want to get into, you can offer flexible services to your clients. Competitive pricing is important in any industry, and owning your own tools will mean you have an opportunity to provide a much lower price and be at the forefront in this highly competitive market.
Unfortunately, it does sound more accessible than it seems. Being able to dictate your pace and determine when and how long you can use a piece of equipment for your project comes with a price. But no, the upfront cost is not as problematic as the maintenance expenses. You can always rely on equipment financing to back you up without emptying your pocket when funding a purchase. Storage and transportation costs are more of a concern.
Before you decide to buy, you have to determine if it is worth it, with all the costs accounted for – a storage yard, fuels, moving costs, etc. That’s the only time you may establish if it is a wiser move for your construction business or not. Remember that equipment rental companies are around to provide easy access for construction companies to obtain what they might need. But they do charge a not-so-inexpensive rate for it. See if that fraction of the cost you pay for an equipment rental is lower or higher than you might need to purchase. Then, decide.