Stop Wasting Your Business Capital
Consider this, spending your company’s cash on unified communications (UC) technology like telephony voice, video, or data equipment today, could actually cost you more money because you are never going to see a return on that investment.
Understand The Rule of 72
The Rule of 72 states, if you invest or recycle your cash/capital back into your business, you will not only see a return, but also reveal the hidden benefit of using an operational expense (OPEX) to procure that technology equipment; be it voice, video, or data technology.
Here’s how it works
Simply take your corporate rate of return and divide it into 72
The answer is how long it will take to double your money?
- Therefore, assuming a 15% rate of return and dividing that into 72, you will double your money every 4.8 years.
Why Buying Technology With Cash or Bank Loans Can Be A Poor Choice
The belief that a company is making an investment when buying unified communications equipment goes out the window when company’s use cash or get a loan to procure it. Initially, buying may seem to make sense; after all, you then own the equipment. But what do you really own? If technology depreciates twice as fast as an automobile does ownership really make sense? Wise investors will tell you to buy only that which appreciates and rent or finance everything else.
"The belief that a company is making an investment when buying unified communications equipment goes out the window when company’s use cash or get a loan to procure it."
If a bank loan seems lucrative, just be cautious and weigh out the pros and cons. Loans are never 100 percent financing, they cut into credit lines, and have adjustable rates. Bank loans were designed for two reasons; to fuel a company’s growth or weather a rough period. I can assure you they are not intended to be used on non-revenue generating assets like your next telephone system or needed data equipment.
Investment 101 Logic
Money in hand today is worth more than tomorrow. Ownership of technology equipment offers no benefit when it comes time for replacement. Based on the Rule of 72, investing your capital back into your business (not on the infrastructure to run it, like technology equipment) will bring better returns on your money. Ben Franklin once said “Money makes money. And the money that money makes makes more money.” If alive today how do you think he would procure his unified communication solution?
Ben Franklin once said “Money makes money. And the money that money makes makes more money.” If alive today how do you think he would procure his unified communication solution?
We think he would roll over in his grave if he found out you used your cash to buy your VoIP or UC technology.