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If you research investment vs expense, you’ll be inundated with accounting theories and tax strategies but the difference is actually quite simple:
An investment is a cost for which the primary purpose is to generate revenue greater than the original cost. The investment generates income, providing you a return on that initial investment.
An expense on the other hand is any cost which drains your resources.
While expenses are necessary to keep your business going, items like paying rent, putting gas in the car, paying vendors for work materials etc will eat into your bottom line and increase the cost of doing business.
In regards to the purchase of income producing equipment like a CNC Routers, that would be an investment.
For example: If the average CNC Router Table generates $150 per hour in revenue and you finance a CNC router for $300 per month: running your table for anything more than two hours per month produces a $150 per hour return on investment. Add to that any and material mark up and youre making serious money with a CNC Router.
That's not a magic trick, thats the simple difference between and an investment and an expense.
Now there are also a host of other ancillary benefits to consider:
CNC Routers Reduce Work Hours A project that takes hours to cut with traditional tools can be done in minutes using a CNC router. That means less man hours per day or a surplus of man-hours to be dedicated to other income producing projects.
CNC Routers Give You Increased Independence Owners of Industrial CNC Routers do not have to be dependent on outside contractors, designers or anyone else to complete their projects. So you can stop paying a premium for work you can do yourself while keeping the quality and schedule under your control.
CNC Routers Reduce Waste An Industrial CNC Router can turn production into an exact science. Operators are now able to maximize efficiency by getting more product out of less material. This means less waste and lower cost. Which overtime can have a serious impact on your bottom line.
So as you can see a CNC Router is the perfect investment tool to Maximize income and minimize expense.
If you have questions about buying a CNC Router, view our routers here or call 888.398.9285 We’ll help ensure you make a good investment.
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Industrial CNC is the global leading manufacturer of Industrial Strength, Integrated CNC Router and Plasma Systems.
From design to engineering and manufacturing, Industrial CNC has one goal: Providing our customers with the strongest, fastest and most affordable CNC Router Systems available backed by an unwavering commitment to customer service and Free Lifetime Technical Support.