Business owners often dream of investing in new equipment with the intention of revolutionizing the way in which they provide services to their customers, and it seems like in the past decade they have been quite active in turning this dream into a reality: According to the United States Census Bureau capital expenditures—money spent to either acquire or improve long-term assets such as equipment or building structures—have increased $446.1 million in this time period from $1,042.1 billion in 2004 to $1,488.2 billion in 2013 for U.S. non-farm businesses. That’s a whopping 42.8 percent!
But is all of this investment really making a difference in profits? Keep reading.
1. Increasing client satisfaction by adding ambiance
A little atmosphere can go a long way in ensuring the comfort of customers. Comfort translates into security and along with security comes trust, so—in the case of an office setting—giving your space a makeover by adding some new plants and art, a television, a rug, magazines, tables, chairs, a sofa, and a new paint job may just be the icing on the cake that converts a potential client into a loyal business partner for years. Considering the service industry, on the other hand, ambiance is certainly one of the most important factors in determining the success of an establishment. For instance, 91 percent of patrons of the casual-dining industry say that an appealing ambiance influences their decision to visit a particular establishment, with music and décor being the most notable.
2. Promoting success amongst employees by strategically designing your workspace
The Harvard Business Review recently published an article entitled "Workspaces that Move People” discussing at length the benefits in investing in remodeling work spaces to maximize personal interactions, performance and innovation. One impressive figure is mentioned in the article that can really send this idea home: For multinational communications company Telenor, during the quarter after investing in strategically redesigning the placement and number of coffee machines as well as the size of the break areas surrounding the machines, sales rose by an astonishing 20 percent.
3. Streamlining your workflow with new technology
It is truer than ever now in this technological era that it really matters to “keep up with the Joneses” in what regards technology, and getting left behind in this arena can be detrimental to a business as it struggles to compete with the rapidly evolving solutions of the age. Whether using a tablet to take orders at a restaurant or using a computer to reach your client base via social networking, almost any business (small or large) can benefit from having the most current hardware available. And let’s not forget about arming your hardware with up-to-date software for bookkeeping, managing inventory, and tracking sales.
4. Upgrading or replacing equipment, inventory and supplies?
While in some situations it may be more reasonable to simply service or update your equipment, technology advances at such a rapid rate in this day and age that it is not uncommon for both hardware and software to become obsolete within a matter of years. The decision whether to upgrade or replace equipment depends both on the availability of funds and on practicality, and ultimately it comes down to weighing the cost of retaining the old equipment against that of its replacement. And don’t forget to consider the money that will be saved in labor costs when the purchase of new equipment reduces or even eliminates the need for manpower.
Alternative Funding
Obtaining newer models and cutting-edge technologies can be a daunting prospect when taking into consideration the financial investment required. Quikstone Capital Solutions provides cash for businesses by leveraging an asset you already have - your monthly Visa and MasterCard sales. A merchant cash advance from Quikstone Capital Solutions is a business loan alternative that can help your business thrive and prosper.
