Hire or Own? Choosing the Best Path for Your Business Assets

‘What’ and ‘When’ to consider…

When starting out, hiring equipment feels like a no-brainer: minimal upfront costs, no long-term commitment, and easy equipment swaps. But as a business grows, hiring can become an increasingly expensive option. Let’s consider the following when weighing up whether to continue to hire or investing in your own equipment.

💰 Cash Flow Considerations

Short-Term Savings

Initial hiring allows businesses to dip their toes in with lower entry costs—great when starting a new contract or entering a new market.

Long-Term Costs

As work builds up, those ongoing weekly or monthly hire fees can really pile up—fast. Owning might mean a bigger upfront liability, but it could save you a bundle down the road.

💸 Tax & Depreciation Perks

Claiming Deductions

Owning equipment allows businesses to generally claim both the upfront GST on the equipment cost and the depreciation benefits —providing a nice boost come BAS and Tax time.

Flexibility with Renting

Hiring costs can typically be expensed straight off your business profit, though it won’t build any business equity

🌱 Growth Phases: When to Switch

Early Stage

Hiring helps businesses stay flexible with less debt commitment. If growth is uncertain, it may be a safer bet.

Established

Once the business’ cash flow has become established and stable and the equipment is seen to be core to the ongoing  business then  ownership may become the preferred option—for the bottom line and security of knowing you will have it available for as long as you own it.

Every business has its own sweet spot. Not sure if you are in that spot now? Let’s chat and we can review where you are at now, where you are heading  and discuss  if now is a good time to consider buying!