Business

Thinking of Buying Equipment for Your Business? Here’s What You Need to Know

Published

3 years ago

December 8, 2021

Many business owners in Canada rely on professional-grade equipment to keep the operations of their business running, but there are plenty of variables to consider before making a commitment this significant.

No matter the size of your business, if you’re tasked with acquiring equipment for your operations, there are certain factors to keep in mind as you begin the process. Here’s what you need to know if you’re considering purchasing equipment for your business:

Assessing Your Financing Options

Unless you’re a wildly successful, multi-million dollar corporation, there is a higher chance that you don’t have enough free-floating capital to purchase expensive equipment without any outside assistance. The upside is that there are plenty of financing options available for business owners across every major industry, from heavy equipment financing in Canada to agriculture, manufacturing, start-ups and more.

Before you commit to any major purchases, research the financing options available to your business so you can make the smartest purchases going forward without compromising your current equity and capital.

Make a List

Now that you have your financing options in order, it’s important to make a list of your needs and wants. This list will act as a way to organize your thoughts, so you’re spending your newly earned capital wisely. It may be helpful to divide your list into two categories, your needs and your wants.

Your needs will include essential pieces of inventory that contribute to the basic operations of your company. Once you’ve purchased the essentials, you can assess which items under the wants category will be best for your company, with your remaining capital.

Choosing Quality over Flash

It may be easy to become tempted over the latest, flashiest pieces of equipment on the market, but have you done the research to assess its quality? No matter what you purchase in business or in your personal life, quality will always serve you better than aesthetics.

This is especially important when it comes to purchasing expensive equipment for your company. The more you prioritize quality, the more money you’ll save in the long run since you won’t have to worry about replacements.

Maintenance Requirements

Maintaining your equipment is a crucial component of its longevity and durability. Without proper maintenance, you’ll likely end up spending significant costs to repair or replace your inventory. Once you’ve begun to shop around for professional equipment, ensure you’ve taken the time to research the type of maintenance each piece requires. This will help you decide if you have the time and resources to handle the task.

If the equipment you’ve had your eye on requires too much manpower or capital to maintain, you may need to consider a lower price point with more attainable maintenance.

Safety & Certifications

Like anything connected to your business, safety is key. When it comes to purchasing expensive and often heavy equipment, ensure each item has the safety certifications you need — otherwise, your business could become liable if the equipment malfunctions. Prioritizing safely ensures your company, employees, and customers are out of harm’s way.

Business

Carry On Canadian Business. Carry On!

Published

1 day ago

October 22, 2024

Steven Kaszab

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

Business

Imperial to cut prices in NWT community after low river prevented resupply by barges

Published

1 day ago

October 22, 2024

Anne Joseph

NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

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Business

U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

Published

1 day ago

October 22, 2024

Anne Joseph

TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

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