At some point of your business, you would need to upgrade or purchase equipment or tools in order to fulfill orders.
What if you need to deliver 100 orders; however, your current production can only accommodate 50 orders as to its maximum? What will you do, then?
Upgrading or buying equipment or tools is part of growing your business. You have to see it as an investment, and not as an expense. Because in the long-term, this can help you in increasing your production, allowing you to receive more orders. And with more orders, it can eventually lead to increased revenue.
But as business owner, you understand that buying equipment is not as easy as it looks. Equipment or tools can be costly, which if procuring equipment isn’t plan well, can affect your cash reserves or working capital.