Lease Vs Buy: Small Company Equipment

In order to prepare your eBay business for massive growth (and profits!) you'll need do a few things. The first thing you need to do is, of course, name your business. You want your business name to be something your eBay customers will remember and relate to your business. Your username should be the same as your business name, so that eBay customers know who to look for when they are are looking for a product in your niche.

You have probably invested a substantial amount of cash in equipment loan. Take the time to make sure that it is all marked with a security marker pen. Pay particular attention to small removable items, like laptop computers, calculators, fax machines.



With a secured loan you must provide collateral which the lender can then sell if you do not pay it off in time. An unsecured loan, on the other hand, does not require collateral, but usually comes with a higher interest rate depending on your repairing credit (read the article) history. For those just starting business, you will most likely need a short-term loan which usually gives you about one year to repay.

The company that is leasing it out should have the latest technology as well as the older varieties. Check out their list of stuff to begin with to know if they have what you want. A customer service option is must. When you finally take the equipment you should note the age of the equipment.

This story is similar to your choice of using fixed costs and variable cost in the operation of your business or professional practice. The gold bars are fixed costs, and the gold coins are variable costs. Fixed costs are the same each month regardless of how much money you generate. Examples of fixed costs include payments for mortgages, equipment loans, insurance premiums, and salaries.

Let's talk about the gold. You have two choices. You can take large, heavy bars of gold or small gold coins. By taking large bars of gold, you save time loading and unloading the galleon; however, the boat is heavy. In calm seas, the water is only a few meters below the side of the boat. Navigating the ship may be difficult.

In the Excel example, we pick the 3 month moving average of 55.85% for "variable costs as a % of sales", not too far off from the year to date average. We increase the fixed costs by $5,000 to reflect the hiring of a new person, and the resulting breakeven is $56,625.