Considering which piece of equipment to acquire and whether you should buy or lease?
These are yet two other areas that you might explore in your responses to:
- Take advantage of technological advances
- Introduce new products
- Introduce new services
- Move into new or additional geographic areas
- Adding new personnel.
You should find out which of your various options would be most profitable. In the area of accounting there is a tool similar our discussion of “setting a price that is profitable”. This tool is referred to as “determining the internal rate of return” of each option and choosing the best—the one with the highest internal rate of return!