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What Is The Business Cost Of Your Commercial Cooking Equipment?
from: Cooking Essentials - by Mark ElmondWhen it comes to commercial, cooking equipment there is some great stuff around these days. It really is going to depend on your style of catering or your cooking needs as to what kind of commercial cooking equipment you really want to invest your hard money into. It is a big decision and one that needs to be well researched and well thought out.
Because you could pour thousands of dollars into your commercial cooking equipment before you have bought your first filtration system. If ever there was a need to have a plan and to be able to clearly see the end in mind, it is with these kinds of substantial capital investments. Many businesses fail because they attempt to run their business plan intuitively. Almost let’s just start and make up our brand and marketing strengths as we go along. Unfortunately while one can truly appreciate the romance of those notions; it is paramount to the success of any restaurant, small short order business, diner, corner store, any business that will invest in expensive commercial cooking equipment to have the end in mind.
Plan it out. Do not jump in and buy the first range oven or grill and char broiler you see. Shop around. Once you have established the brand direction of your store. This goes even for the little guys, if you are a small diner you need to have your business plan mapped out. You need to know how much you are going to grow your customer number over the next 5, 10, 20 years! Seriously, it could make a huge difference to whether you are going to be able to take your business to the next level (if that is what you wish) if you have planned this sort of stuff out well. If you make a mistake, and say buy the smaller broiler now, to save on set-up costs, it may end up costing you thousands in lost revenue, because you did not have the operating capital in the future when you needed the bigger piece of commercial cooking equipment. Also, usually you will have the most flexibility, especially if you have borrowed you capital, to invest in good quality commercial cooking equipment at start-up. So, leverage that time well and invest for the future.
The other factor worth remembering is depreciation. If you upgrade at start-up then you will be able to write off a higher amount in depreciation. Which might be a better option now than 3 years down the track? Talk it over with your accountant.
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