It is easy to get excited about a growing business and leap into every opportunity that becomes available. While risk is a necessary ingredient for growth, sometimes it really is better to take a step back and simply say “no” to certain things.
Perhaps you have an exciting opportunity for a discount on inventory or to increase your building to handle growing demand. Having cash in the bank to cover the investment is a wonderful thing, but is it always wise to pay cash, no matter what? Not necessarily. Careful consideration needs to be given to exactly how much cash is going to be left after the transaction. It may be that it is better to finance part or all of the investment, at least in the short term.
It may seem that adding the newest piece of equipment to your veterinary practice is the obvious next step. Maybe there is a great deal on a pizza oven so you think you should take the opportunity to add one. Do not take that step however, without a careful analysis of the profit it will bring. Are customers really demanding it? Will it really bring in more customers currently? Is your current equipment working okay right now? It may be a good time, but it may be better to wait. If there will be no immediate or at least very quick profit increase, now may not be the time.
Not Enough Profit
It may be that the opportunity will create an increase in profit, but will it be enough to make the added expense worth it? Is growth to the point that the change is necessary or even prudent right now? Sometimes the answer is “no,” and sometimes the answer is “wait.” Cost benefit analysis is essential in making these decisions.
Taking on new veterinary equipment financing, shelling out a large sum of cash for a new pizza oven, or any other major financial decision requires careful consideration. Sometimes it makes sense, sometimes it doesn’t, and sometimes is makes sense but it just isn’t the right time. This gray area is the most difficult to discern.
Whenever you do decide to take the leap and look for financing, Biz2Credit is here to help. Our network of lenders offers all types of financing to borrowers across the country. Visit Biz2Credit.com today to get started.