Business plan for capital equipment

With all the inherent benefits of bringing rapid PCB prototyping in-house widely known in every industry, one would think every product design team would have one by now.

Plan Outline:

But the reality of suggesting any business expenditure over five or ten thousand dollars is that engineering managers and product designers rarely have final say. Like any capital equipment purchase, PCB milling machines, and more costly laser etching PCB fir machines, are going to be seen by financial decision makers as investments with undoubted risk.

business plan for capital equipment

Outlined in this article, and in our businness CapEx Justification Kit, are guidelines for crafting a winning business case to business plan for capital equipment the rapid PCB prototyping machine you need. A business case is an appeal. Taking the form of a written proposal, it is an appeal that financially justifies any purchase. In other words, a business case tells the C-suite why this investment is worthy of their approval.

business plan for capital equipment

A good business case must speak the approvers language, take into consideration each of their concerns about the potential purchase, and demonstrate business plan for capital equipment return on investment, or ROI.

Ideally, it will excite them about making an investment in the growth of the business. The first part of a business case is the executive summary.

business plan for capital equipment

Because it is the first item anyone will read, the executive summary can make or break your business case. To start, equuipment break your executive summary into bullet points.

business plan for capital equipment

There should be three to five, which might look something like this:. After you do this, flesh out capitap bullet points into two clear, well-written paragraphs.

Don't bother with copy and paste.

Use an active voice and keep your words direct. Do this effectively, and your executive summary will get management leaning towards approval right from the start.

In addition to expanding on the concerns outlined in the executive summary, the situational analysis should demonstrate that business plan for capital equipment machine solution you are proposing is the right solution.

To do this, you need to include four elements in the situational analysis:.

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Put together, these business plan for capital equipment break down different levels equupment the decision-making process and provide a thorough, accessible look into what is hampering your company and what can be done to correct the situation. Here is where you identify the capital equipment as a solution to the status quo. Develop themes between the current situation and proposed solution and focus on real short-term benefits, rather than perceived long-term benefits which are more likely to be scrutinized.

To keep it concise, how to tackle with depression is best to stick to the most obvious alternatives. Capial first being to continue with the status quo.

The second trying to find a less expensive business plan for capital equipment, and the third a less costly machine. Describe the merits first, then present the pitfalls of these decisions. Every investment, equipmet one as large as a capital equipment purchase, has at least some element of risk. Financial decision makers are keenly aware of all risk factors, so by demonstrating you have foresight on them you will improve your chance of approval. As with the alternatives, state only the business plan for capital equipment obvious risks.

Follow each with a one-or-two sentence rebuttal equipmeny why the risk is minimal when compared to the benefits.]