One other thing to look at is the amount of sales you have, whether you can meet your sales with your current equipment, and whether you need to hire more employees if you do not purchase the equipment.
For example, one employee making 10 dollars an hour costs you 400 a week just in wages. That does not count employment taxes,unemployment insurance,workers comp, etc.
So in a month you will pay that employee 1600 dollars plus the above costs.
Now, if you were to purchase the CNC and the software to operate it, can that machine plus you do more work than that employee plus you for the same money?
also, if you are turning away work because you cannot keep up, that is a situation where you may look at financing.
Here is what I suggest and what I am currently doing:
go to your areas small business development center and sit down with them. They will help you to write a business plan, develop a marketing strategy, and run some financial numbers to see whether your plan can cash flow at the levels you are projected to be selling. In my area they also offer gap financing and have some more programs tied to economic development that can provide more assistance based on projected job creation.
The business plan is the key. It will help you define what you want to do,how you plan to do it, and what you need to do it. If your plan is sound it will give you confidence and direction and it will show the lending agencies that you know your business and your direction.  |