When starting your own business, you will certainly have a lot of questions you will want to find answers to. You will wonder things like how where to locate your business, how many employees you should hire and how many copy machines you will need.
You will also want to know how long you can expect an office chair last.
This is an excellent question because it opens up a side of business you may not have even thought about. You have considered expenses on many levels, but you probably haven’t ever considered if the smart choice is in buying or leasing your office equipment and office furniture from Trimarc.
The rule of thumb is that an office chair will typically last about seven or eight years if it comes with a five-year warranty and 12-15 years if it comes with a 10-year warranty. But like a pair of sneakers or a shirt, an office chair will encounter different levels of wear and tear. And you can bet that if an employee used the office chair to stand on to change out burned out light bulbs, the life expectancy will surely decrease.
You will also need to take into consideration other factors. For example, if your business grow rapidly and you find yourself moving the business from one location to another, that will affect the life of the office chair as well.
Enough about office chairs for now, let’s focus on office equipment and furniture in general. Any equipment or furniture you need for your business has a limited life. That is, at some time or another, in addition to having to replace that office chair, you will have to replace the printer, copy machines, computers and telephones as well.
And if you think you can simply sell off this office equipment when you have outgrown it or you need equipment that is not outdated, you should think again.
Depreciation is the systematic and rational allocation of the acquisition cost of a piece of office equipment, less its estimated residual or salvage value. Simply put, that old phone system you bought three years ago is outdated and you really aren’t going to get much, if anything, for it.
Useful life is something else you need to consider when deciding whether to buy or lease office equipment. Useful life is the estimated number of years a piece of equipment is usable before its value has completely diminished.
When considering office chairs, it might make sense to buy them if you can cat a dozen years use out of them. But a phone system might have a much shorter useful life and leasing is by far the best option.
Unsurprisingly, there have been plenty of studies and research done on every piece of office equipment and furniture you can think of in determining their useful life.
You will want to know that a computer has a useful schedule life of three years, a telephone has five years of helpful life and you can expect copiers and fax machines to last you five years.
Here is a little surprise; some things you think would last a long time really don’t. Heavy equipment like wood-working equipment, lawn mowers and tractors only have seven years of useful life as do standard automobiles, light trucks and vans.
Knowing this, making a decision to lease your work van is a no-brainer.
In fact, there will probably a big list of equipment that you will want to lease instead of purchase outright.
If this is the conclusion you have come to, give us a call and see what Trimarc can offer you.