Initial Capital Cost: High; Potential Return on Investment (1-year from date of initial investment): High; Market Demand (especially for specialty equipment, such as for hospitals and audio booths): High
From music production companies to freelancer photographers, equipment is an essential part of business execution. Many investment banking firms such as JP Morgan Chase & Co. only ever rent out their IT equipment (computers, laptops, intranet set-up, etc.) and would never purchase it. Why? Simply because each year for example, DELL releases new models of desktops with enhanced technological capabilities, in a way that say, the new 2023 model makes the 2022 model obsolete.
As an equipment provider your mindset should be very similar to that of JP Morgan Chase & Co.; high quality. High quality office equipment just removes that obstacle which we can all attest to I'm sure, that can slow us down, of machine failure. High-performing organisations, even in the seemingly blissful and stress-free music industry for example, can't afford even a second's worth of PC failure. It's one second too much. Likewise in hospitals where the stakes are literally "life-threatening", not just in the literal sense for the likes of Investment Bankers for example (they're still alive after the PC freezes).
In hospitals, especially during surgeries and ICU maintenance (people in comas with EKGs - electrocardiographic heart monitors - and on a drip), just can't afford any kind of technical failure. In South Africa, many folks who live on the same power grid as hospitals don't experience power failure for that very same reason. It get can get legally complicated if any incidents of such failure occur. Therefore liability insurance is a key component to the leasing business model.
The leasing model of business is typified by three parties: the seller (owner of desired property), the buyer (also known as the "lessee") and the financier (also known as the "lessor"; real estate agents; property brokers; etc.). The leasing revenue model revolves around
the buyer's financial commitment.
Resources to look at
Business News Daily - A Complete Equipment Leasing Guide for Small Businesses - businessnewsdaily.com
Entrepreneur - Equipment Leasing | Business Management (entrepreneur.com)
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