SME’s Key Priority: New Company Vehicles
Small to Medium sized companies or SMEs account for over 99% of privately-owned businesses in the UK in 2014. As the cornerstone of the UK trade industry, growth and expansion are the agenda of SMEs for 2015. Based on a research published in Fleet World, a large percentage of management teams intend to invest in their business in the first two quarters of 2015.
The financial year showed a marked improvement for majority of SMEs prompting business owners to consider taking risks for company growth. Businesses that run a fleet of vehicles will most likely need more vans for expansion. An expanding company will take on more jobs and more staff. In connection, more vehicles are needed.
SMEs in the same trade are highly competitive. One major concern is getting to their customers in the most effective, efficient and least time possible. If an expanding SME lacks vehicles for on-time deliveries and servicing, then that company will most likely lose to a same-trade business that can.
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Van Acquisition is Key Investment
Yes, the acquisition of additional vehicles is a straightforward way to grow and expand an SME. A past Vansales’ blog post discussed the increase in van sales due to the growing online shopping sector. The more purchases there are, the more deliveries, the more new company vehicles needed for quick deliveries. An easy enough deliberation is: if a business doubles its fleet, they can possibly double the number of jobs.
Based on a research published in Business Britain, a survey of 1,500 businesses indicated that close to 50% of management teams are bent on raising the necessary fund to invest in their enterprises in the first two quarters of 2015. The same study showed that along side of oversea expansion, staff training, establishment of new plants and the procurement of equipment, the acquisition of new company vehicles is a key priority in company growth.
Small companies in the construction (28%) and transportation (20%) industries have made the necessary preparation to buy or lease a company van this year.
Minimizing risks during business growth.
Minimizing risks during business growth
Risks are part of any business more so when the business is expanding. There are various van sellers where one can buy a new vehicle as well as a whole range of options for acquiring vans. However, which one if the most risk-free?
Business expansion takes a leap of faith as there is no fool-proof way for guaranteed success.
The economic climate is favourable right now but what if something goes wrong and the business has to downsize again? If this happens, being tied to a contact for a certain number of vehicles for a certain number of years could mean a financial disaster to the business owner.
If you are a business owner and are thinking of acquiring new company vehicles, call us now for consultation. Vansales offers flexible contract hire and leasing for business owners like you. Vansales affords business contract hire and short term leasing at very affordable rates and low initial outlay.