Equipment & Technology Previously as an employee of a company you will probably have had standard equipment to use based on company policies, you probably had no idea of the cost, and you probably had no idea of how much effort and work went on behind the scenes to keep it all working.. You will probably not have had to think too much about which equipment to buy as that decision, unless it was your company car of course, will have been made by some division of the company - you just used it.

With your own business it is very different – firstly of course you are now spending your own money not someone else’s. So before you even think about which brand of gizmo to buy you have to think whether you/your business really needs it, remembering that some assets imply extensive hidden lifecycle costs – it is not just the capital price but the Total Cost of Ownership (TCO) that you need to focus on.

The other consideration is that some of the equipment you buy will be essential tools of your trade, e.g. scissors for a hairdresser, spade for a gardener, computer for a web designer etc.. Other will be things you need because you are in business, e.g. office furniture, accounts recording, filing cabinets, telephone etc..

Some things you can get away with sharing with your personal life, e.g. use the spouse’s car and charge mileage or use the spare bedroom as a meeting room, others you should avoid – do you really want to use the same phone line as your teenage daughter??

So once you have decided on the equipment and services that your business really needs it is the time to start deciding which brand to buy – maybe not. Think carefully whether you actually need to buy or could you lease, if you are going to buy does it have to be new? This decision need not just be about expensive items such as cars or computers, why spend a lot of money on office furniture only you will see. Perhaps the company that downsized you is also disposing of some of its assets and you can pick up equipment you are already familiar with more economically than something new to learn about.

Many of these decisions will depend on the size of your customer base and your target market, what you are selling etc. and of course your own interests and attitudes. What image is important to convey? One of Dave’s colleagues who operated as a contractor for many years would often use “granny’s car” rather than his own on the basis his customers would perceive his rates to be more reasonable than if he arrived in a newish car. Clearly if the car is going to be the tool of your trade, e.g. as a “private hire driver”, you are going to need to spend more than if it is just the means to get you around your clients.

The question is, as with so many other aspects of beginning a new venture, where do you start? We can help you to answer these questions as part of our consultancy services. So, if you would like to know more - you will now have to take one of the first steps in getting going in your own business - that is, putting you hand into your own pocket. This is of course is the single hardest part of getting going - you have to start paying for all sorts of things that you took for granted before. You will have to pay real money.

Some people offer the option to trade services. At one time Peter thought this was a great idea - until he tried it. It was a disaster - services offered for trade were mostly second rate. The only people that win in these situations are the trading organiser who takes a monthly fee. In other cases Peter traded services with people he knew.

Generally trading services leads to more problems that it is worth. When trading services you are not in control. If you want someone/something - define what you want (or get help in defining it) and pay for exactly the service you want. You are then in control as far as it is possible of the outcome but remember you only have as much control as the monitoring that you do.

We can provide you with specific help in most of the Information and Communications Technology areas, we can give you guidance about good people to do business with for stationery, cars, insurance and the like. When it comes to some of the essential professional services, such as your accountant, it is about the relationship as much as the competence and you should chose with care not just take recommendations.

So just think do you really need a whizzy Palmtop computer or would a card index box and paper diary be just as effective – and certainly cheaper?? Do you need a mobile phone if most of your calls are from your desk? Do you really want to turn up on your clients doorstep in your Porsche wearing an Armani suit to negotiate your fees or would a four year old ford and a Burtons suit be more effective? If you want them by all means have them – just remember you are the one who is paying.