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E-Myth – “Why most small businesses don’t work & what to do about it”

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Part Time CFO Services | Work To Buy Need Vehicles?

Part time CFO services | should businesses buy used vehicles

With 50% of all businesses closing their doors within five years, and 29% of those businesses saying that the reason their business failed was that they ran out of money, says Part Time CFO Services. Helping business owners make better purchasing and financing decisions in order to avoid that cash crunch. Business owners need to pay attention to the quote by Robert Kiyosaki who is the author of Rich dad poor dad, good debt is a powerful tool, but bad debt can kill you. Making the best decisions about financing and what to purchase, can help business owners use debt is a powerful tool, and avoid bad debt.

Business owners often believe that purchasing used vehicles is a great option for them to be able to maximize their money and get vehicles inexpensively. In order to help business owners understand if this is a good option for them, there are several questions they need to find the answer to. The first question says part time CFO services is does the age of the vehicle affect the length of the loan? Many entrepreneurs are very surprised to find out the answer to that question is yes.

And it doesnít lengthen the length of the loan. Because of the depreciating nature of vehicles, banks the terms of used vehicles the much shorter so they can get their money back quicker. Therefore even though the used vehicle may have a cheaper price take on it, it will be much more difficult for the business owner to pay back then if it was new.

The next question that entrepreneurs should consider when they are thinking about buying used vehicles, is that can only payments on used vehicles be higher than the ones? The answer to this question is also yes says part time CFO services and the reason for that is because the term of the loan is much shorter, they need to get more money back quicker. This can be even more devastating for a business owner not only do they have to pay the money back quickly, they have to pay a lot more back. But may be in a business ownerís best interest, is buying a brand-new vehicle, because they will have a longer time to pay back, and lower payments. This can help them avoid that cash crunch that 29% of businesses say was the reason why their business failed.

The third thing that a business owner should consider when it comes to purchasing a used vehicle, is how does used vehicles affect your brand, and employee satisfaction? Business owner may not consider their image when theyíre trying to save money, although itís not a huge problem, it can make their business look not only less reliable, but less serious says part time CFO services. Customers may look at a vehicle and make assumptions about your business, maybe that the business is running out of money, or doesnít do their due diligence. Since it is not advantageous for a business to buy used, a business owner can also take into consideration that it also doesnít look great.

Part time CFO services | should businesses buy used vehicles

Business owners are constantly trying to save money because as they operate their business, they run into a cash crunch says part time CFO services. In order to avoid that cash crunch, business owners may decide to purchase used vehicles and set of new in their business. Business owners should ask themselves several questions to determine if it is in their business is best interest to buy those vehicles used, or if it is a better option to purchase brand.

The first question that business owners can ask themselves if they should be purchasing used, is how does increased maintenance and fuel cost effective monthly cash flow? This is a variable that not very many business owners take into consideration when they make the decision to purchase used vehicles says part time CFO services. But it can absolutely be more expensive to run and maintain used vehicles.

Business owners may want to consider the fuel cost and a used vehicle, because as a vehicle ages, fuel economy goes down, as well as new vehicles usually have better fuel economy. In a business owner afford to pay the additional cost to run that vehicle? Also a used vehicle will need more regular maintenance that a brand-new one. Oil changes, tune ups, replacing belts, fans, filters. This can be taxing on a business, because as the business operates, it runs out of operating capital, which can put undue stress on the business to try and maintain an older vehicle.

The next question that a business owner should take into consideration when they are debating if they should buy a used vehicle, is how can less reliable vehicles increase your page cost or steal your time? Part time CFO services says business owners should definitely take into consideration that an older vehicle will have a higher likelihood of breaking down. The reason why this is troublesome, is that fixing equipment will cost the business owner time, which is very precious. But in addition to time, it will take business owner money, which it was already indicated earlier on in this article that business owners donít have a lot of that laying around. But in addition to costing time and money, it can also halt production in the business.

Whether it prevents an employee from getting to a job site, production is not happening on the job site, it is also causing bad employee to get paid to do nothing. It is very costly for the business owner to not get production done while also having to pay their employee. This can compound the cost, not only will the business owner have to factor in the cost of the loan, the cost of increased maintenance, the cost of increased fuel, the cost of repairs, the cost of lost production as well as the cost of paying staff to do nothing. These things are all enough reasons for business owners to avoid purchasing used vehicles in their business.