Can you afford to keep using outdated equipment?

There is a “person” in your phone that answers your questions. Amazon seems to read your mind when you land on their website. Some cars even parallel park for you. Often, people think of companies like Google and Apple when they think of technology innovation, but in business, technology advances extend far beyond the mobile devices and websites. Commercial equipment in all categories offer gains in efficiency, lower operating costs, and even increased revenues. This has business owners seeking ways to keep up … affordably.

But is the pace of technology really increasing? In a word … no. Research from Harvard and the University of Pennsylvania both point to the fact that while it “feels like” technology advances are accelerating, they’re actually not. The pace of technology advancement has remained relatively constant in most areas for more that 100 years. And if the pace isn’t really increasing, businesses must develop a plan to adapt new technologies as they evolve and become available.

As part of your company’s strategic planning, you should develop an asset plan. What are the critical assets, equipment, technology, etc., that power your business? How long should you plan on keeping each asset before upgrading, replacing, or rebuilding based on your planned usage of each? From there, think “AFMD” – Acquire, Finance, Manage, Dispose, as the core strategic elements in considering each piece of equipment your business depends on. It may take some real thought the first year, but by updating this approach every year, you have the beginnings of a long-term plan to keep up with equipment advances. Now, how to afford it?

Financial demands required to pace equipment advances can feel daunting. Just when you feel like you’ve completed a major investment in equipment for your company, it’s time to upgrade, trade-in, or replace. This leaves business owners with painful cash flow spikes and unpredictable operations. The life cycle management plan might help you predict when those cash flow spikes may occur … but who wants cash flow spikes? By financing assets, you can really help promote long-term success. When executed well, financing can help you:

• Reduce, even eliminate, cash flow spikes
• Implement equipment and technology with affordable monthly expense
• Just pay for what you use in an asset, instead of paying for all of it upfront
• Match expenses to revenues more easily
• Reduce the hassle of end-of-life trade-in or disposal issues
• Affordably stay on the cutting edge of technology

The pace of technology can be effectively managed. How you manage these life cycles can even become a sustainable competitive advantage for your company – it just takes a little effort. We can help. At SLS, we offer uncomplicated financing that allows you to get the most from your assets in the most affordable way. Do you need a plan? Let’s talk.