Starting a new business can often be a challenging time. Startups are keen to implement their new products and services in the market.
Leicestershire, England -- (SBWIRE) -- 07/07/2016 -- Starting a new business can often be a challenging time. Startups are keen to implement their new products and services in the market. But, they also need to do so while spending as little as possible. The truth is, many startups require significant investment before trading.
For some new businesses, the level of expense can be far too high a risk to justify. Especially when it comes to establishing new food and drink companies. The good news is one can still put into practice their goals and ideas. How? By considering quality used equipment instead of new machines, of course!
Any business that sets up a new enterprise in the food and drink industry will usually have a high outlay. Buying used equipment that is also in an excellent condition is a proven way to keep costs down. Machinery World reveals how doing so can significantly reduce investment costs:
The sad truth about buying new equipment is how fast it can go down in value. Depreciation can also bite hard when purchasing products in a micro-niche market too.
It's likely people setting up food and drink companies will wish to upgrade equipment. They might have a renewal strategy of say five or so years. The last thing they want to do is end up with equipment that is worthless. Especially if lots of money got paid for brand new items.
Buying used, high-quality equipment gets around the issue of depreciation. When they do wish to sell their machinery in the future, they won't lose a lot of money. Of course, the other advantage is the lower investment cost!
The beauty of buying used is that one can still enjoy the tax savings associated with equipment. Capital allowances apply to used equipment, not just brand new items.
That means new startups can still reduce their tax liability to increase their profit. During those crucial first few years, it's important for businesses to lower tax liabilities. Doing so means they have more money in the bank to grow.
A lot of used equipment is still "as new"
The unfortunate fact about startups is that some end up going bust in just a few weeks. As a result, much of their equipment may still be unused or even in its original packaging! When those items get resold, they almost always go for prices lower than new. That means the used equipment people might buy could actually end up being brand new!
About Machinery World
Established in 1999, Machinery World is a global trader of used dairy processing machinery. They buy and sell equipment in the UK, Europe, Asia, and America. In fact, the company has bought and sold high-quality machines in over 100 countries.
For Media Contact:
Machinery World Limited
Wolvey Lodge Business Centre
LE10 3HB England United Kingdom
Tel: +44 (0)1455 220179