Payback

Over the next Several Weeks we will be posting a new and different one-minute video providing business tips and instructional commentary for small business owners.   These tips will range from key metrics to consider to the importance of Business and Cash Flow Forecasting.

To purchase, or not to purchase? That is the question, here is the answer: We should never ever purchase equipment unless one simple word is in play. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. That simple word is payback. Payback is defined as the length of time it takes to recover your investment. If that length of time is a year or less, the investment you make is almost a no-brainer. If it’s longer, you need to make a more technical analysis. Remember, the most successful business owners know their numbers!

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