Equipment Leasing Blog

Opportunities Abound - Seize the Day!

Wednesday, September 29, 2010

Are You Ready to Grow Your Business?

As the economy continues on track toward recovery, many businesses are putting their contingency plans aside and discussing growth opportunities. However, in any economic climate, it's essential to weigh the pros and cons of expansion and proceed with caution. While some say "grow or die," making poor business decisions can bury your business completely.

When considering growth, first do some personal reflection to determine not simply, "is my business ready," but "am I ready?" Taking big steps to develop your business is going to put a great deal of stress on your personal life. Be sure you're ready to handle it before putting any plans into action.

Next, pinpoint exactly what growth means when it pertains to your business. Do you plan to:

  • Increase your current market share?

  • Create a new product or service line?

  • Expand into new markets?

  • Acquire or merge with another business?

Assure you conduct sufficient market research to determine which of these areas would be most profitable for your business. Take into account your competitors, your customers' needs, and the niche you already hold in the market.

Once you personalize the definition of growth for your business, make an objective analysis of your business. Consider the resources you're already equipped with and decide whether or not these assets have the ability to support your growing business.

Even if your product is up to par, a soggy foundation can leave you sunk. Consider the stability of these resources:

  • Financial: Is your business checking account healthy enough to handle the financial stress of business development? You'll likely need additional funds to invest in your growth, which means you must assess the likelihood that you can secure more funding for your new business venture.

  • Staffing: Are your current employees up to the challenge? If not, be sure you have the capabilities to provide sufficient training or the financial means to hire a new top-notch team. Remember that your growth will be fueled by dedication of your employees — expect to compensate them as they reach new levels of responsibility.

  • Technology: Do you have the additional or upgraded equipment necessary to create a new product or to increase production of an already successful one?

  • Location: Do you have the ability to house the staff and equipment that will be required to sustain growth?

  • Marketing: Do you have the tools on-hand that are necessary to assure your customers are aware of your new or improved products or services?

When considering these aspects, decide just how much you're willing to invest to assure your resources can provide a satisfactory foundation for the new workload. If you decided the benefits outweigh the risks and you're equipped to meet the challenge, it's time to put it in writing.

You probably created a business plan when you first started-up, but reexamine it and you might find that you've veered from the path you mapped originally. Be sure that you keep your business plan up-to-date especially when you're making changes to encourage growth. This document will not only come in handy when seeking funding, but will serve as a time line by which you can measure your success. Having this clear-cut plan will also help you stay focused on your business rather than getting distracted by opportunities outside your niche.

Finally, do the research to assure your customers are going to be on board with the changes. It's not smart to make alterations to your product that might seriously disrupt brand loyalty. For example, when Coca-Cola changed their recipe in 1985, their loyal customers demanded they bring back the original recipe. The soft-drink giant spent millions on this growth endeavor only to revert back to where they started.

Growth can be very profitable, but also extremely risky. Instead of diving in head-first, make a plan and take precautions to assure you have the right skills, resources, staff and customer attitude to be successful.


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posted by Tiger Leasing @ 11:23 AM 0 Comments

Thursday, September 23, 2010

Drive Sales Using Equipment Leasing

When your business is selling vital operational products to other businesses and organizations, it is crucial to understand the role that equipment leasing plays in the success of a sale. Because 80 percent of businesses in the United States use lease financing to acquire the capital needed to grow, lacking sufficient resources to make this possible can be detrimental to the sale.

Your customers consider equipment leasing over buying because many may not have access to the up-front cash required for straight purchases. Moreover, equipment leasing preserves bank credit lines, allows for upgrades and add-ons and, and as an added bonus, provides significant tax advantages. As a result of this freedom from pricing restrictions, your customers have the ability to make larger purchases.

Offering equipment leasing also benefits your customers because you spend less time collecting accounts receivables and more time providing your niche goods and services to customers. Another mutual benefit for you and your clients is that equipment leasing companies often offer direct support to make the entire process run without a hitch.

On your end, the leasing process is simple. Simply provide your client's information and the lessor will care of the rest, dealing directly with the client to attain the necessary information for their approval. Once all the documentation is in order, a purchase order for the products is submitted and the payments are completed upon verification of delivery.

Use the following tips when deciding to use equipment leasing as a closing tool:

  • Keep customers focused on the benefits of your product rather than the price.

  • Be proactive by introducing equipment leasing and highlighting the advantages while on every sales call and in every proposal.

  • Don't assume your customer can pay cash up-front. Instead, advertise monthly payments in your product literature.

  • Quote monthly rental early-on in your presentations to assure your customers are aware of their payment options.

  • Facilitate the addition of new equipment by focusing on the low monthly payments.

Several informational tools are available online to help you land a sale using equipment leasing as a selling point:

As the economy continues to recover and businesses increase their spending on new capital, exercise these sales tips to assure you're using equipment leasing opportunities to your advantage.

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posted by Tiger Leasing @ 10:25 AM 0 Comments

Tuesday, September 7, 2010

Equipment Leasing Jumps 17 percent

Two years ago, economic woes sparked a 20-month decline in the equipment leasing and finance industry. However, over the past four months, the industry has been showing substantial growth and gains shown in July have been the strongest since the decline began.

"Our data mirrors recently reported government statistics showing the annual rate of overall business investment in equipment and software up nearly 22 percent in the second quarter, said William G. Sutton, president of the Equipment Leasing and Finance Association (ELFA). It appears we're heading in the right direction and our members remain cautiously optimistic that this trend will continue."

Equipment Leasing Data

(Data compiled by ELFA)

In addition, July's approved financing applications rose to 70 percent, which is a 7 percent increase from July 2009. Of the loans granted, only 3.5 percent were past due by more than 30 days, which is an improvement of 10 percent from the previous year.

According to a survey by ELFA, respondents reported that collectively, they financed $5.6 billion worth of new equipment in July compared to $4.8 billion one year ago. The industry is also had steadily been showing growth month-to-month, though reported business gains from June to July only improved slightly.

Though increases in investment spending is usually indicative of recovering business conditions, only 22 percent of finance company and bank executive are confident that conditions will improve during the next four months.

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posted by Tiger Leasing @ 11:11 AM 0 Comments