Tools at the ready

Spring is here and clients are calling upon your services. Now is the time to take stock of your tools. Paula Warman helps choose the best tools for your business and offers advice on whether to hire or buy

From a landscaping perspective deciding what equipment to buy is a minefield. In my experience the first question to ask yourself is what tools will make the job easier, saving on labour time.

Firstly identify the tools you need for your business based on what areas of landscaping you work in the most. Then take time to do a little online research to find the best product at the best price with reviews. Dare I say, You Tube and Tik Tok videos can offer good examples of tools in action! Then create a shortlist of the manufacturers that appeal and best places to buy, of course including local suppliers. Finally, ask for recommendations from your own industry network.

Demonstrations at events are great, too for seeing equipment in action. But bear in mind demos will probably showcase the item in a non-typical work environment. Hence looking at reviews and recommendations of people using it in a real-world example is a much better gauge of how the tool will fare.

In our landscaping business we often contact other contractors and manufacturers that we have good relationships with to get their take on the tools we are buying – particularly if it is a large, costly purchase. As an example, on buying a digger, we researched online and relied heavily on peer recommendations and reviews. Then we looked at the budget and considered whether to hire was a possible option.

Ultimately when looking at a costly item like a digger, the conundrum of whether to hire or buy will arise. I would urge you to run the figures for your business via your cashflow forecast. Work out how many times you hire a digger – for us it was a case of almost every job, which was a cost to the business of around £180 + VAT per week (plus delivery in some cases). To purchase a digger, it would cost us £200 + VAT per month which worked out £50 + VAT a week. It was an easy decision as it would save us money, increase profit and we would have another asset in the business. Then I looked at the cashflow forecast to further check that we could cover the monthly cost and see the point where it would begin to make a profit. need our help please email at info@thelandscaperscircle.co.uk | www.thelandscaperscircle.co.uk

But don't forget that when you own power tools and plant you need to budget for upkeep and maintenance. A digger needs servicing, repairs and tracking devices, as well as additional insurance costs for transporting it around. Ultimately you need to run the figures for any purchase you make to ensure they stack up positively for the business. The cashflow will also help you to identify when the right time is to invest in new equipment.

Don't forget there are some added benefits to investing in tools and plant for your business, such as less corporation tax – the Annual Investment Allowance (AIA) allows a business to claim tax relief on purchases of certain assets up to a specified limit. Plus, the VAT you pay on the purchase will be offset against your next VAT bill. Speak to your accountant or tax advisor for more information and guidance on this.

The other tools of your trade to consider is business software and systems. When it comes to project management software, social media schedulers, CRM’s, and team management tools everything available online comes with free trial. My advice, take advantage of the free trials and block out a few days to test the ones that you have identified will make your business easier and are on your shortlist.

My best advice is to always run the numbers before purchasing. If you need help in cash flow forecasting do get in touch.