It’s no secret that inadequate cash flow is one of the main reasons why businesses fail in Australia. Dynamic Business only recently talked about this issue last week, with new research commissioned by H&R Block found that the biggest struggles for small businesses across Australia are: ‘cashflow’ (35%) ‘marketing effectiveness’ (30%) ‘lack of support’ (19%) Read More…
Which Car Suits Your Business Model Best?
Thu 28 July 2016 - 10:42 amCashflow | Export | Industry | Industry Finance | Transport | Logistics
When you own and operate a small business, you’ll find yourself experiencing many milestones. Purchasing a company car is often one of the significant stepping stones towards future success.
The kind of vehicle you require will hinge on the type of business you run – a Ford Focus hatchback would not be particularly useful to a courier company, for instance. So what sort of car best suits your business model? Here are a few ways you can narrow down the list.
Sales, Management, Mobile Tech Support
There are countless businesses in urban areas that can benefit from a small-to-medium vehicle.
Salespeople that need to create or chase down leads will find smaller, more nimble vehicles like a Mazda 2 up to a Toyota Camry rather valuable. These sorts of vehicles are also useful for management with multiple locations, as they are comfortable enough to spend a decent portion of the day in as they zip between suburbs. But nowhere is all this versatility more worthwhile than for mobile IT support staff. When the email server breaks down, these staff need to be able to move quickly with only the tools they need.
Another benefit of these vehicles is that they aren’t overly expensive, and they maintain a decent resale value if looked after. While many dealers can help with business rates on finance or leasing for these sorts of vehicles, the savvy business owner will check in with alternative lenders using a broker like Zoom Car Loans to compare.
Couriers, Transport, Logistics
For businesses that focus on the transport of goods like couriers or logistics companies, vehicles with storage capacity are the order of the day. Mercedes Benz Sprinters are considered top-of-the-line, but the Hyundai iLoad and even the venerable Toyota HiAce are perfect for couriers and light transport. For businesses that require heavier-duty transport vehicles, the Fuso Canter, Hino 300 Series and the Isuzu FRR are all highly recommended.
The resale value on vehicles like these usually remains high because there is always a demand for them, even when they have a few kilometres on the clock. Make sure you maintain them in case a need to sell ever arises.
Trades, Services, Mobile Repairs
Those in trades and services require a vehicle that blends the best aspects of the vehicles outlined above. They need to be able to store multiple tools and machinery, but they also need to be fast and nimble on the road. For small businesses and sole traders, especially those who will attend multiple jobs in a day, light trucks and utilities are key – workhorse vehicles like the Nissan NP300 or the Toyota HiLux never seem to wane in popularity. Holden and Ford also build utility versions of their popular Commodore and Falcon sedans, and both have been a mainstay among Australian tradespeople for years.
These vehicles are built to take a beating and will stand up to having gear loaded in and out all day, every day. They’re also built for limited off-road travel, which can make working in rural areas less of a rough ride.
From this cross-section of vehicles, you should be able to draw a clearer picture of what you’ll need to look for in a company car. Think about which aspects of the vehicle would best benefit your business, always make sure you take a test drive, and never commit to buying without being sure you’re getting exactly the vehicle you want.
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