Manufacturers & Distributors ARTICLE -
Know How You’ll Pay Before You Shop for Technology
Target Audience: Manufacturing and Development Companies, M&D Industry, Latest Technology Interest, Efficiency Improvements Interest, Strategists
Cutting-edge technology can provide tremendous efficiencies and cost savings down the road, but it can be expensive to buy for an entire manufacturing operation. That’s why you should consider a technology funding plan. If you have a vision, a strategy and a structured approach to acquisition and implementation, you can buy technology that helps you achieve your objectives faster and more efficiently.
The first step to funding all of your technological needs is to include these expenditures in your long-term strategic plan. You can’t expect to purchase everything in one year, but plan to introduce a part of the new system each year.
If your initial investment is going to be significant, you may need to seek lender financing. If that’s the case, prepare your approach. Don’t focus on the technology; instead, focus on what the technology will do and how any efficiencies it creates will help you repay the loan.
In addition, build a business case for everything you want to include — not only to make your funding request more appealing but also to give yourself a reality check. Will the expense of all of the bells and whistles actually benefit your company?
Remember, too, that technology isn’t overhead. Budget it as its own expense, and be sure you’ve taken advantage of all existing financial, technological and human resources before determining how big to make the budget. Don’t, however, continue to add “work-arounds” to an outdated system in an effort to get by.
Consider, too, training, speed of adoption, system performance, technology support and return on investment as you develop your plan. They all can add costs, and overlooking or miscalculating any of them can throw your funding plan into disarray.
Find out how our M&D accountants can add value to your business. Email us or call us at 1 (888) 875-9770.
related links
M&D Newsletters & Articles
Tax Services
Audit Assurance and Accounting
Industries
Tax and Business Updates |
