Putting up a catering business is never successful without the right equipment but the right equipment costs a lot of money and it may be money you can’t afford to part with yet. So rather than cut corners and not get the right equipment, most new catering companies opt for a less expensive method that will not only allow them to have the equipment they need but also have it without busting their budget.
In the old days, renting out catering equipment was unthinkable, because it was like buying second-hand equipment only you didn’t have to pay as much. Just thinking about all the things that could go wrong like the stove breaking down during a busy time is enough to make caterers throw the idea of renting out the window. That is, until the advent of equipment rental companies online that offered a choice of rental terms that didn’t break the bank and also allowed them to rent high-quality brand-new equipment, with an option to buy them at the end of the rental period.
Even applying for rental on these sites was easy – all you had to do was fill out a rental request form, submit it and within 24 hours, you get approved assuming nothing goes wrong with the checks the rental company needs to make on you. Rental periods run from as short as a year to 36 months and usually require you to put down a security deposit that is usually 15% of the actual price of the equipment you want to rent.
If you’re one of those who are still not sold on renting catering equipment Sydney, here are some reasons why you should consider it: Renting not only allows you to save money from your start-up budget that you can use on other important things for your business so you easily manage your cash flow. It is also 100% tax deductible.
Other reasons for renting instead of buying is that it gives you wider options and you get to test the equipment so you can decide on whether you want to buy it for later or just return it at the end of your rental period. Another plus is the fact that you don’t have to spend money on repairs because rental companies will often have what is known as a full term breakdown cover, which means that should anything go wrong with the equipment, all you need to do is contact the company’s service team who either solves the problem over the phone or sends over a technician to repair or replace the unit for free.
Renting your equipment also means you get free scheduled maintenance services to make sure the equipment you rent functions at 100% for the full contract term. If you buy your equipment, you spend more on hiring a technician to repair it and even more money to replace it when needed.
When starting out in any business, there is no guarantee that it will be the financial success you want it to be in the time you want it to happen. As such, it is important that you have enough cash to cover all contingencies and unforeseen circumstances lest you end up closing your business down even before you had a chance to let the world know about it. Renting your equipment during the early days is a prudent thing to do, especially as business won’t start booming until you’ve earned a reputation. In the meantime, stash your cash and rent it out until it becomes necessary to purchase the equipment rather than rent it.
Stephen John is a food and wine enthusiast. He blogs about food, wine, and culture and writes food reviews for a living. He loves to write about the food catering business and likes to share tips and knowledge about it with aspiring caterers.