How to pick the best capital investment option for your organization
When faced with decisions that affect nearly every corner of your business, such as how to allocate your capital, you need to be certain you’re asking yourself the right questions for narrowing your options. In the recent Builders’ Merchants News article “Lease or Buy,” Holman Enterprises EVP & CFO Chris Hurren listed five key questions to consider:
- What is the potential ROI?
- What are the short- and long-term goals?
- How will this decision influence the company’s other decisions?
- How much capital is the business generating?
- What will you do if it doesn’t work out?
Hurren follows the list with one critical take-away: ensure you are answering these questions based on facts rather than theory. “…removing uncertainty is vital,” he states.
Relative to fleet management, Hurren recommends using telematics technology for achieving transparency. With a real-time view of the driver’s behavior inside the vehicle plus transaction data from fuel and maintenance costs, telematics data helps you identify and address your most costly, least productive vehicles and drivers.
Download the article to read more from Hurren about other key factors and how data analysis will help you clear the path for insightful decision making.