Is Leasing Technology A Wise Choice For Small Business Success

Owning technology (purchase, upkeep, and disposal) is difficult to manage properly especially when talking about technology that no successful business can do without; computers. Leasing office furniture or copiers is common practice and widely accepted. Computers and information technology products seem to be the last great holdout particularly in smaller businesses. They�re often viewed as a �sunk cost�, without the financial accountability necessary to manage total lifecycle cost or correlate the expense to corporate strategy.

By the time a company goes through a lengthy purchasing process the item�s useful life is rapidly being overtaken by new technology. In addition, you can�t easily accommodate growth or technology refreshment. Large capital outlays are followed by fixed, inflexible depreciation schedules that don�t match the asset�s useful life, and it ties up capital best used for new investment opportunities.

Leasing integrates technical, staff, finance, and end users requirements while assigning ownership and asset management to an outside partner. This accommodates new requirements, growth and planned obsolescence. The outside partner becomes an extension of the business.

Financing all of the business� technology requirements also provides management with a smoother, more predictable budget and users can compare monthly costs for technology upgrades and higher service levels against business benefits.

Leasing computer equipment provides a natural, financial lifecycle, and eliminates asset disposal requirements. Therefore, leasing technology is a wise business decision and provides a reasonable option to ownership.

Dan Light, Principal, Dan Light Consulting, LLC is considered one of the world�s leading small business management consultants and advisers. He specializes in business development, turnarounds and business coaching.

His focus has been to double smaller companies, often in weeks, and to similarly increase the output of his larger clients by identifying root causes and removing the obstacles that have prevented their success. He achieves these results by helping clients develop or hone business skills, remove self imposed limitations, and identify/implement sound business systems.

He transforms potential into exceptional performance. mailto: dan@danlightdirect.com