You’ve done your research and gone through the motions of buying a franchise, and now you’re ready to set up shop. One of the first things you might need to do is stock your franchise with equipment.
The type of equipment each franchise needs varies depending on the industry. For home-based franchises , the equipment tends to be minimal, whereas fitness franchises and food franchises tend to have more capital needs. Your franchisor will guide you as you determine what type of equipment you need, but there are still other considerations you’ll need to make on your own.
Before you start stocking up on your equipment, consider these questions.
1. How much will the equipment cost?
Chances are, before you bought your franchise, you had a general estimate of how much the equipment would cost. Now that you’re ready to buy, you need to figure out the specifics.
Equipment costs can add up quickly. Many franchise owners need to get an equipment loan to help cover these costs. If you’re planning to get financing to buy the equipment, it’s important to have the pricing nailed down so you can present your needs to the bank and get enough of a loan to get you off the ground with the right capital.
2. Can you save money by buying used equipment?
In some cases, you might be able to cut your costs by buying used. These days, there are plenty of places where you can access used equipment, both online and offline.
Some resellers are more trustworthy than others. For example, you might not be comfortable taking a risk and buying used equipment via eBay. On the other hand, you might have an equipment reseller in your industry with a strong reputation for refurbishing key pieces for your franchise.
Buying used is somewhat of a gamble. Be sure to do your research on who’s selling the equipment so you know you’re not just saving money but also getting quality capital.
3. If you’re inheriting equipment from a past franchise owner, what’s the state of the equipment?
Sometimes, the used equipment comes directly from the previous franchisee. In this case, you know where you’re getting the equipment but the quality can range dramatically.
Before you determine what type of equipment you need, or before you decide you don’t need to buy any new equipment, inspect what’s being given to you. You don’t know how well the previous franchisee took care of the equipment you’re receiving. Look at the condition and take each item on a test run so you know how well each item functions.
Before You Buy
Before you start pouring money into new equipment for your franchise, take these three items into consideration. Knowing the cost of buying new, whether you can buy used or the current state of the equipment you’re inheriting will help you better determine what you need to invest in initially.
Susan Payton is the President of Egg Marketing & Communications, a marketing firm specializing in content writing and social media management. She’s written three business books, including How to Get More Customers With Press Releases, and frequently blogs about small business and marketing on sites including Forbes, AllBusiness, The Marketing Eggspert Blog, and Tweak Your Biz. Follow her on Twitter @eggmarketing.