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にほんブログ村
Hello, this is Yasui, a solo business owner running a company mainly engaged in inspections of high-pressure gas equipment.
This month is shaping up to be one with very little revenue, and even now, months like this still make me uneasy. I understand in my head that such months happen, but I don’t think I’ll ever really get used to them.
“Not owning things” or “not having a storefront” has become a key principle behind many successful small businesses in recent years. And I believe that drowning in inventory or having large fixed costs that squeeze your profits often comes from having these two things — lots of possessions and a physical store.
Of course, for a retail business, not having a store or inventory is nearly impossible. But for companies in our line of work, we might actually be able to function with nothing more than a small warehouse and a small office.
Owning things means you need larger storage space, which brings higher fixed costs like rent. And if you want a large space in the city, rent goes up. If you want to lower rent, you end up in the suburbs, which becomes inconvenient.
If you don’t own much, it’s also easier to move when needed. For things you’ll only use once, renting instead of buying is often a better option. If you buy something, it becomes an asset—so you should consider whether that asset will generate money in the future. Otherwise, you feel renting is a waste and end up buying things unnecessarily.
As for vehicles, I personally prefer to purchase them, but leasing can be an option. You don’t need upfront funds to buy the car, there’s no need for a loan, and inspections and taxes are included—it’s hassle-free. (Though I personally don’t find the benefits all that compelling...)
However, the downsides include:
A fixed monthly cost, and you’ll end up replacing the car regularly (usually every five years).
You never own the vehicle and must return it. (For people who struggle to decide when to replace their cars, this might actually be a benefit.)
When you calculate the total vehicle costs per year or over the lease period, the amount is surprisingly high.
At the end of the day, cars cost money and effort just by existing. That’s undeniable. So the rule is simple: don’t own more vehicles than the number of people who actually use them. That’s it.
Reducing what you own and keeping fixed costs as low as possible.
Always looking for alternatives.
These small decisions eventually pile up and make a big difference.
Thank you very much for reading to the end!
See you again!
Lastly, please click the link below ♪
Nihon Blog Mura – Management Blog
Nihon Blog Mura
