Should You Invest in New or Used Computers for Your Startup?

When you start a business, there usually isn’t a lot of capital with which to invest in top of the line amenities, like brand new furniture and even a sleek new office space, but what about computers? Well, the same goes for computers – when you start a new business and you are on a bootstrap budget, you want to save everywhere. Indeed, though, computers are an essential part of your business, so it brings up a good question: shouldn’t you invest in new computers instead of risking a slower network, less workplace efficiency and more data breaches with an older fleet of computers?

When it comes down to it, new computers have less of a chance of crashing. Plus, they usually have warranties – just in case anything does happen. If your entire business is run off of your computer network, you want to have the lightning fast speeds that come along with new computers. In that sense, it may be worth it to simply fit a new fleet of computers into your startup budget. Having a newer set of computers can make the startup process more seamless and it can get your new company closer to profitability.

However, if your business just doesn’t have the budget, you could be risking the viability of your business by investing in new computers. Oftentimes, a new fleet of top-of-the-line computer models can set your business back tens of thousands of dollars – sometimes more if you have a bigger fleet. In most cases, your business won’t have the seed capital of a venture capitalist and there aren’t millions of dollars to throw around on nice gadgets. If you do have that kind of budget, there is no reason why you should not invest in new computers.

The other option, though, is to invest in older computer models and modify them with newer, updated components. Basically, customizing and modifying old computers gives you the best of two worlds: the ability to save money and to have fast and efficient computing machines in your workforce. For instance, you could purchase a fleet of older model computers and then embed a Cisco memory chip and perhaps some other newer components. Before you know it, your older model computers will basically be just as good as new model computers for a fraction of the cost.

Lastly, there are also other options when it comes to equipping your business with computers and an operating system. For instance, you could actually rent your computers until cash flow is strong enough to purchase a new computing fleet. When it comes down to it, renting computing equipment is often a lot more financially feasible for a newer business. Oftentimes, you can rent your computers and a new server until your company is profitable enough to bite the bullet and purchase its own computers. At the end of the day, it is not so much a question of whether it is smarter to invest in new computer equipment or older equipment – it is really about how much your new business can afford.