How an Equipment Appraisal Can Help with Long Term Business Planning
As a Michigan business owner, you probably aren’t just looking at your business today, but also looking at how your business might look in the future. You might be looking for that next new contract, wanting a better understanding of the equity that equipment can tie up, or you may just want to create a good replacement schedule for your equipment. No matter what your goal, a certified equipment appraisal can help you make the best decisions for your business now, and in the future.
Many agencies that seek bids from contractors want to know if you have equipment available to do the necessary work and the reliability of that equipment. This frequently is the case with government agencies. Having an up-to-date equipment appraisal for your equipment can give you an advantage over other contractors that may not know this information. A certified equipment appraisal provided with your bid documents will show a prospective client that you are prepared to do the work, and will not slow down their schedule with old or unreliable equipment. Being able to compete for all sorts of contracts will help your business stay solvent, and certified equipment appraisals will give you a leg up on the competition.
Especially if you are still making payments on pieces of equipment, if business is slow and you are looking for ways to free up cash for your business, it is a good idea to have appraisals on all of your equipment. Knowing how much equity you can free up through the sale of equipment is a great way to bring cash flow into your business, when things are slow or times are tough. It’s also a great way to evaluate which pieces of equipment you aren’t using frequently enough to justify the expense of maintaining. This information, including the useful life, hours run and appraised value, can give you a great starting point for determining which equipment is ready to sell, and will bring you the most cash.
Having a solid replacement schedule for your equipment is a great way to manage assets and make sure that the equipment you have on hand is reliable and will be functional when you need it. Keeping equipment longer than the useful life results in lost equity and diminished reliability. An equipment replacement schedule will allow you to get the most from your trade-in and will keep you competitive in the bid market. In many cases, your appraiser can offer suggestions for replacement timing for many pieces of equipment you may have on hand. This can give you a great starting point for creating a useful and effective replacement schedule.
Certified appraisals are an important part of keeping your business and equipment ready for anything that may come your way. Being able to plan for the future and provide for your business today will help you be successful and keep your company on track for the future.
I’m Searching for the Best Michigan Appraiser Near Me!
R Stout Appraisals is Michigan’s expert in certified equipment appraisals. Whether you have manufacturing equipment or farm equipment that you need appraised, we can help you. For more information on our equipment appraisal services, please call us today at (248) 978-8388.