Being an entrepreneur is difficult, no matter the industry. When it comes to opening restaurants, many hopeful business owners never even try because of the initial investment. A space needs to be rented, supplies have to be bought and a staff has to be paid, all before any customers have settled their tabs. What these people don’t know is that leasing restaurant equipment is a great way to minimize those initial costs. You can still get what you need to make the food and run a business without paying an inconceivable amount of money up front.
In the early stages, most restaurants are operating on some kind of loan. Whether it’s to cover the rent or buy the inventory, borrowed money gets things going. Leasing is no different, and in many ways better. You’ll start by saving yourself a massive amount of money, as there’s no way to get around a substantial down payment when you buy equipment outright. That will then enable you to spend money on the other things you need, such as electricity and chefs. Without that working capital, it will be very hard to put food on plates, and food is a very essential part of running a restaurant.
As for the monthly payments, you’d still likely be paying for purchased equipment in monthly installments. If you’re leasing restaurant equipment for 10 years, you’ll eventually spend more than if you’d just bought the items outright. However, most leases last fewer than five years, and at that point you have the option to buy the equipment if it’s still getting good use. Another benefit is that you can return something at the end of the lease and upgrade to a newer, better version. Monthly payments seem a lot less daunting when the equipment keeps getting better.
The money you save on upgrades will show up over time; the money you save on maintenance will be noticeable almost immediately. Kitchens are busy, hectic places where food gets made at a break-neck pace. Chances of various instruments breaking down are pretty good. With leased equipment, the cost of repairs is covered, eliminating a huge expense you’d have to account for if the machinery belonged to you.
You won’t be able to run a restaurant without the proper equipment, and if you can’t afford to buy it you’ll probably have to lease. Fortunately for you, leasing restaurant equipment is probably the best option. It will save you time, money and possibly add to the longevity of your business.