1. Buying or leasing office equipment
2. Is it time to buy a computer?
3. Can an 800 number help me?

Leasing equipment instead of buying it might be an option to help avoid large expenditures of capital at the beginning of your operation. If you know that you'll want to purchase the equipment down the road, ask about a lease-purchase arrangement. However, beware of any long lease obligations and any personal guarantees and read all the conditions carefully and know what your liabilities are.

Return to List

Q: When should I consider buying my first computer for my business?

A: Now! There are few businesses that can't benefit from a computer. The IRS will even give you a 40 percent discount -- for depreciation under Section 179. With the cost of a business computer, printer and software dropping now to about $3,000, this means your actual out-of-pocket expense will be $1,800 or less.

One of the most beneficial uses you'll find for a computer, and one that will pay you back the fastest, is a good accounting program that can easily save you a hundred dollars a year in taxes just from taking all the legitimate deductions available. Also, with the tax preparation software available today you can do some real tax planning and save even more.

A computer can also boost your bottom line by helping you better market your business. You can track customer activity, make up your own advertising pieces, develop direct mail programs, keep in touch with customers and let new customers know more about your business. There are so many things a computer can do, you will wonder how you got along for so long without one.

By the way, did I mention there are some great computer games to cut down on the stress of running your own business?

Return to List

Q: I'm considering getting a toll-free 800 number for my business. Is it worth the expense and will it help increase my sales?

A: Many business owners are finding that giving their customers access to a toll-free 800 number makes the difference between getting an order or not getting it. Most long-distance carrier services can provide you with 800 number access at a pretty reasonable rate. The cost may vary depending on the geographic area you want to cover, but plan on spending about $50 a month (basic usage charge) and 15 to 25 cents a minute for time charges. Just like cellular phones, you pay for all the phone calls.

Where your customers, or potential customers, are located will determine whether a toll-free 800 number will help your sales. If they're in the same area code as you and can call without having to pay long-distance charges, an 800 number will make very little difference. If, on the other hand, you have customers who have to pay every time they want to reach you, an 800 number is an inexpensive marketing tool, giving you an image of being a larger business and delivering a higher level of customer satisfaction.

Don't think that your customers have to be hundreds of miles away from you either. In many metropolitan areas, most businesses have customers who live outside the standard calling area.

To evaluate whether a toll-free 800 number is for you, look over your existing customer list and determine what percentage of them must call long-distance to reach you. Also consider if an 800 number will help you expand your customer base. Once you have this information you can decide how many of your customers will benefit from the 800 number. Giving them the opportunity to call you without having their telephone bills reflect the cost is good customer service. I think that you'll agree that if you can call someone without having to pay for the call, you are more likely to do so.

There's one other benefit to a toll-free 800 number, it makes you more efficient. You know how most of us have a tendency to spend three times the amount of time on the phone talking to someone than is really necessary to take care of business? Do you notice how business gets done faster when you're talking to someone on a cellular phone? That's because the person on the cellular, thinking how much per minute the call is costing, gets down to business. Toll-free numbers are a similar incentive to be more efficient. You'll be amazed at how much more you'll accomplish in less time as you sit there counting off your call at 15 or 20 cents a minute. You'll actually get more work done and make more money.

Return to List

Return to ShopTalk page.