Equipment

Examine the production process and determine your equipment and machinery needs. Determine the total cost of this equipment, including taxes, freight, installation charges, and training required. It may not always be necessary to purchase a brand new top-of-the-line model, if a less costly or used model will perform the same function.

In order to free up capital for day-to-day business operations, many small manufacturing businesses are leasing rather than purchasing equipment. For more information on this topic, refer to ED&T's Financial Planning for Small Business.