In business we’re constantly buying new things. Whether it’s vehicles, printers, stationary or data storage, as business owners we’re in an ongoing state of purchasing. However how often do you actually research what you buy or plan what you buy before handing over the cash.

In the majority of case we purchase new things as a result of an event. For example the fax machine died and we need a new one immediately or the world will end. It’s often the first supplier we call or the fastest to supply that we purchase from due to our urgency. However in the long term was this the right decision.

Lack of research becomes even worse the lower the value of the item. For something less than $100 we seem to just grab what we can. Every stopped to think how many times over you’ll pay that $100 for the same item because it won’t last more than a few months.

The moral of the story is we often ask ourselves where does all the money go. The answer is simple we spend it. Yet we work so hard for every cent but spend so easily. Start plugging the holes in your financial colander and start researching everything you buy before buying it.

Ask yourself these simple questions before buying anything regardless of urgency or value.

  1. Does this product or service meet my requirements in full?
  2. Is this the best price I can buy it for?
  3. Will this support a long term solution or is it a quick fix?
  4. If it’s a quick fix would it be better to spend a little more for a longer term solution?
  5. How reputable or reliable is the product or service and can I find reviews or testimonials about same?
  6. Is this product or service absolutely necessary or is it an impulse buy?