With the right tools, you can improve your methods, output, ability to develop new ideas, and bottom line.
But to get those results from a significant investment of capital, you need an investment plan that considers both your short-term and long-term goals. You’ll save time and money and won’t have to spend money on quick fixes.
With these nine tips, you can buy the right tools.
1. Look at the truth of your business
It’s important to know what your goals are.
Do you want to work more efficiently?
Will these new tools help you do better in the business world?
Will it help you keep up with your rivals?
Can you improve the performance of old equipment instead of getting new ones?
Before you buy, make sure you know how to answer these questions. Refrain from being swayed by aggressive marketing efforts that make claims that aren’t true.
2. Get a view from the outside
Depending on the size of your investment, it may be worth it to work with an outside consultant who can help you make the most of your buy by helping you figure out what you need.
At first, you’ll look at essential things like capacity, how employees use their time, and the resources you already have. Doing a cost-benefit analysis is the most usual thing to do. This helps you justify your purchase and figure out the pros and cons.
In manufacturing, you might use an asset utilization ratio to measure how well you can use tools and other assets to get the best results. The idea is that if your devices are better, you’ll get better results.
3. Spend money on modern tech
A 2017 survey of 960 Canadian manufacturers found that digital technology companies saw significant benefits, such as increased productivity, lower running costs, and better product quality.
The ability to predict and avoid downtime and improve the effectiveness and maintenance of equipment is the primary thing that increases productivity.
Costs can be cut by:
Real-time production tracking and quality control to cut down on waste and rework predictive maintenance to avoid expensive repairs and unplanned downtime
More automation to cut down on staff costs and speed things up
the use of 3-D printers to make prototypes faster, cut down on engineering costs, and speed up time to market
On the other hand, tools like real-time quality controls help improve quality.
4. Make a plan for technology
Instead of buying things here and there, think about your business needs and plan for the long run. A technology plan can help with this.
A technology roadmap is a tool for planning that helps you match your business goals with long-term and short-term technology options. It should help you understand your present technology systems, set priorities for developing technology, and give you a schedule for implementing new strategies.
The first step in making your roadmap is to get a clear picture of what you are already doing and map out your processes.
A process is a set of activities or steps that must happen in order to make a product or service valuable to the customer. Here are some examples of methods:
Billing and Production
Getting goods and sending them out
This activity will help you figure out what is working and what isn’t. It also allows you to look at your current technology, data use, and any skills or tools you might be missing. Most importantly, mapping your technology roadmap will help you find investment chances to improve your customers’ journeys, whether it’s by buying new equipment, new technology, or optimizing specific processes.
5. Look around for places to buy from
You can find many companies that sell specialized tools on the Internet, so take the time to look around. Check out newsletters geared towards certain businesses and go to trade shows where you can try out equipment. You can also get more information from business groups.
Make sure to make your choice of source based on price. Also, consider the supplier’s reputation and after-sales service, and ask for recommendations. You can ask for better warranties or a more extended customer service plan if you are a regular customer.
6. Don’t forget to train
Too often, business owners need to think about how much time, money, and other resources it takes to teach employees how to use new tools. You want to avoid the drop in work when people take too long to get used to new technology or ways of doing things.
If the equipment is new or has new features, workers will probably have to learn how to use it. It’s essential to avoid problems by ensuring you have the money to deal with the downtime they cause. You’ll need time to train workers to ensure your business can run at total capacity.
7. Decide if you want to buy the gear or rent it.
When you buy something, you own it after the exchange is finished. Your company spreads out the cost of the tools over its useful life. You can get a loan for more than the item’s price. BDC will finance up to 100% of the buy cost, and it may also be possible to finance the cost of installation, training, and shipping.
Leasing or renting may be a good choice for equipment that quickly becomes outdated or is only needed for one job. When you rent, your payments may be less than if you bought the tools. You don’t own the equipment, though; you can only buy it once the deal ends. The price you pay at the end of the contract may be less than what you would have paid at the beginning, but since you’ve been making payments, this option may cost more than others. Depending on how the lease is set up, your rent may be part of your running costs.
8. Safety should come first
Your workers and company can be more productive if they have a healthy and safe workplace. This is also true for the equipment and technology you buy.
Your suppliers are responsible for giving you safe equipment, but ensuring your employees follow safety rules is up to you. Human Resources and Skills Development Canada runs a Workplace Health and Safety Programme site where you can find out more.
9. Stay green
Ensure that your buying tools or technology uses as little energy as possible. You’ll not only save money, but you’ll also be helping the planet stay healthy. Find out how your new equipment will affect the environment and how to get rid of your old equipment in a way that will have the minor effect on the environment.
