Should You Buy That Big Business Asset? Here’s How to Know for Sure

Sasha Curin
May 12
4 min read

When you run a small or medium-sized business, big purchases are a big deal. It’s not like buying a stapler for the office, these are investments that could seriously shape your future. A new work vehicle, a fancy piece of equipment, an upgraded computer system, they can all make life easier or become an expensive regret.

So how do you know when it’s the right move?

That’s what this guide is here to help you figure out.

We’ve put together a simple PDF checklist you can print out and run through before you commit to help you make decisions with confidence.

Why big purchases matter more than you think

It’s tempting to think, "Well, we’ve got the money, we need a new (tractor/truck/website/server), let’s just go for it."

But the best business owners don’t just buy things because they can. They buy things because they should.

A smart purchase can:

Save you time and money
Boost your capacity or income
Free you up to work on bigger opportunities
Give you an edge over the competition

A rushed or emotional purchase, on the other hand, can drain your cash reserves, add stress, and leave you wondering if you really needed it at all.

Think about it this way: buying a fancy new ute because "it looks good" isn’t the same as buying a ute that lets you deliver twice as many jobs in a day.

Your “Should We Buy It?” Checklist

Before you sign anything, take five minutes to work through these questions:

1. Will it make work easier, faster or better?

It’s not enough for the asset to be nice to have. It needs to change something meaningful about the way you operate.

For example:

Will a new machine speed up your production?
Will new software cut hours off your admin every week?
Will an extra vehicle mean you can take on more jobs at once?

If you can’t clearly say how it improves your business, you might not actually need it.

2. Will it generate more income or save serious costs?

Sometimes, a new purchase helps you bring in more sales. Other times, it helps you reduce your costs. Ideally, it does both.

For example:

A café might buy a bigger fridge to hold more stock and reduce wastage.
A builder might buy new tools to complete jobs faster and take on more work.
A tradie might upgrade a van, allowing them to work further afield.

Ask yourself: Is there a direct link between this purchase and making or saving money?

3. How are you planning to pay for it?

It’s easy to get carried away thinking about how useful the asset will be and forget to plan how you’ll actually afford it.

Options to think about:

Pay cash from your reserves
Use a business loan or line of credit
Lease it and spread the cost over time

Each option has pros and cons. Paying cash keeps you debt-free but could leave you tight elsewhere. Borrowing means interest payments, but spreads the cost. Leasing might seem easy but could cost more overall.

Top tip: Always run the numbers on how repayments (or leasing costs) will affect your cashflow month-to-month.

4. What extra costs are hiding around the corner?

The price you see is rarely the whole price you’ll pay.

Think about:

Installation and setup costs
Ongoing maintenance or servicing
Increased insurance premiums
Training staff to use the new equipment
Downtime while you make the switch

Example: A business owner once bought a top-of-the-line printing machine for their office... only to find out that the maintenance contract cost $300 a month, every month. Ouch.

5. What’s your break-even point?

In simple terms: how long will it take before this asset pays for itself?

If you buy a new machine for $10,000 that saves you $500 a month in labour, it’ll take 20 months to break even. After that, it’s pure benefit.

Knowing this number can help you decide if it’s worth it and stop you from making purchases that tie up cash for years without much return.

6. Is now the right time?

Sometimes the answer to “Should we buy it?” is "Yes, but not yet."

Timing can make a huge difference.

If you’re heading into your busiest season, buying now might set you up for success.

If you’re in a slow patch, it might be smarter to wait until cashflow is stronger or better deals are available.

Be the Business That Buys Smart

There’s no rush. A smart purchase is one that supports your goals, not strains your finances. Use this checklist, get advice if you need it, and remember you’re investing in your future, not just buying more "stuff."

Download our free PDF checklist to help you work through the key questions before making a major business purchase.

Need a hand running the numbers?

We’re always happy to sit down, crunch the figures, and help you make a decision that feels right for your business.

Contact us today if you need business advice.