Those who are just starting out in the food business should know by now how challenging it can be to maintain a steady cash flow. With so many things you need that requires substantial spending, it can be difficult to decide which ones to prioritize and which ones to let sit in the back burner for a while.
When you are putting up a catering business, everything can seem very important, from the location to the equipment. However, this is one case where you’ll need to go slow and steady, take the time to decide what you’ll need to buy initially and what you’ll need to rent for the time being. Putting up a food business is understandably exciting since it is one of those businesses that yield high profits especially if it is done right but it can also be one of those businesses that has high attrition rates and you can fight as valiantly and bravely as you can to stay afloat but more often than not, you could end up just throwing in the towel.
Being in the catering business means having the proper equipment to ensure you do your job right as cutting corners could easily have you floating belly up. Food is always a tricky business because you risk a lot of things and we’re not just talking about finances. However, as any restaurant or catering company owner knows, getting equipment is always the biggest expense you have when starting out and as such, you’ll need to exercise careful thought and consideration.
Often, some catering company owners would look into buying second-hand equipment which can be a good idea except that you run the risk of buying equipment that may not perform up to par. Also, since it has already experienced some wear and tear, there is no guarantee that it can provide you years of loyal service, in which case you’ll need to repair or replace it, costing you even more. Catering equipment hire will often be a better alternative since in addition to the fact that you can rent brand-new equipment, you will also be able to have all the necessary equipment you need, especially ones that you can’t afford yet.
The great thing is that there are catering equipment companies online who offer flexible rental terms and even the option to buy the equipment at the end of the rental period for a certain percentage of the original sale price. This actually allows you to have a steady cash flow and manage your funds so that you can put it towards other important aspects of your business like payroll for example. You can check here to see how the rental process is done and what you’ll need to get it done as companies will often do a background or credit check first but once you are approved, you’ll be good to go. Rental periods are often from a year to 36 months so you can just choose which will work best for you.
Another distinct advantage of renting out your catering equipment is the fact that you have a wider range of options and be able to test out various pieces of equipment to see what will work best for your business. Also, part of your rental contract will include options on repairs or replacements done for free as companies like Premier Sales & Rentals will often have what is called a full term breakdown cover which means should your equipment break down during the rental period for some reason, they will send over their technicians to check the problem and if necessary, your equipment will be replaced for free.
This definitely saves you money on costly repairs and even costlier replacements, which is something that often happens in the food industry especially since equipments are subject to heavy use. How many times have you seen ads in the newspapers or online about restaurant owners wanting to quickly get rid of certain pieces of equipment because they can’t afford the repairs? One of the pitfalls of putting up a food business is that you will have to sell equipment to get out of debt, often at far less the price you originally paid for it.
While renting will eventually become too expensive, which is when your business becomes successful, it is one option that will tide you over until it happens. The great thing is there are tons and tons of catering equipment suppliers online that can help you out with deciding on what necessary equipment you can rent. Simply choose the rental period which you think will work best for you and you’ve got yourself a full arsenal of catering equipment to help you succeed – and all without breaking the bank.