Considerations When Purchasing New Technology Solutions

Buying new technology solutions for your portable restroom business probably isn’t the first thing you think about in the morning. But, when faced with an insurance hike after a driver accident or when you realize how much time you spend tracking down inventory, you may wonder if it’s a good time to add new software or devices. Anytime you purchase equipment, whether that’s a portable restroom or a dash cam, you’re spending money not only on the device or software but you’re also investing future funds into repairs and upkeep. So, how do you know when it’s the right time?

Think About Technology Options Before You Need Them

The best time to start considering technology solutions is as soon as possible. Doing so gives you an idea of the costs versus benefits, and it’s easier to do some research before you’re in a bind. First, take a look around your office and shop. Identify areas of your business that may benefit from adding technology solutions. Common software upgrades include:

• Customer management systems
• Cloud-based accounting or payroll programs
• Dash cam hardware and software
• Routing software
• Inventory management systems

Figure Out if a Solution Will Boost Profits and Reduce Costs

Once you can visualize where new technology may someday fit into your operations, it’s time to check your work and customer logs. The idea is to see if you’re losing money or missing opportunities by not using a technology solution. And to decide if you can make more money with it. Ask yourself questions like:

• How much time does it take to do the job manually?
• Has it affected customer experiences negatively?
• Could you boost worker productivity and save money on labor?
• Will you save money on insurance?

Estimate Total Cost of Ownership

Cloud-based solutions require a monthly or annual subscription plan, whereas you’ll pay a one-time fee for disk-based software. But it’s not only about the initial cash expenditure. Cloud solutions often come with free and automatic updates and upgrades. That’s rarely the case with software you own. Moreover, you need to break down what it’ll cost to install software and hardware and train employees on new systems. Factor each of these numbers into your final cost.

Decide How You’ll Pay for Your Investment

In some cases, you may be able to use funds from your business. Or, if your debt load isn’t too high, you may consider a loan or other financing options. At this point, it’s also a good idea to check with your tax accountant. Certain capital expenses are multi-year tax deductions, while others can be deducted all at once. Always find out how a major decision will affect your taxes before moving forward. Once you’ve reviewed your finances, you can decide to purchase now or put aside some funds each month to pay for your investment in cash.

Final Considerations When Purchasing New Technology Solutions

Investing in technologies can significantly improve your operations. However, it’s important to understand how overall costs affect your budget and if it’ll be worth it in the long run. Do your due diligence early so you can plan for the right time to make your move.

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