Among the largest expenses you need to allocate your budget for when opening a franchise is equipment. The costs would vary depending on the specific type of franchise you want to open.
For instance, if you are opening one of those popular sub shop franchises, depending on the scope, you could be looking at spending $85,000 or higher. Fortunately, you could save some money on equipment costs with the following tips.
Decide What You Need to Buy New
Although you don’t need everything to be new, some equipment such as computers should ideally be new. For one, they’re relatively inexpensive, plus they come with a warranty. Additionally, technology changes very quickly that you’d be wasting your money on purchasing even a three-year-old computer system.
Shop Around for Used Equipment
While you probably have to use an industrial freezer or refrigerator for your sub shop franchise, it doesn’t have to be 100% brand-new. Check out auctions in your area because plenty of companies that are going out of business would seek help from auction companies to help them sell their equipment, tools, fixtures, etc. Look around Craigslist or eBay as well, just remember to read seller reviews and the location.
Shop Around for Equipment Financing
Instead of shelling out a sizable portion of your budget just for your equipment needs, check out lenders that offer loans for equipment and ask your franchisor as well. Taking out the stress of spending on equipment upfront would free up your budget so that you could spend it on other important things for your franchise.
Make Sure to Check The Equipment’s Condition
It’s best that you get a qualified repairman to check any equipment you’re looking to buy before buying it. Ask also if manufacturer or seller warranty covers the equipment. Check how much repair costs would be like as well since some brands might have more expensive parts than others.
Purchase Equipment Over Time
Depending on your specific needs for the first few months of operation, you probably won’t need to buy every single piece of equipment you think you need to buy. Instead, save a portion of your profits each month and buy more equipment in the coming months.
Having proper equipment is extremely crucial for your franchise business. So keep these tips in mind to help make sure that you could save your hard-earned cash, purchase equipment that would last you for as long as possible, and spend your money on more equipment whenever appropriate.