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• Staying competitive If it’s important that you are technologically equal (or better)
than your competitors, leasing allows you an option to get the latest and greatest
equipment with regular rollover.

But leasing isn’t all perfect. Let’s talk about the downsides of leasing. Cons include:
• Paying more, overall Leasing is more expensive than outright buying. For
instance, if you spend $2000 for one computer upfront, you would pay $2880 if
that same computer was leased for $80 per month for 3 years. Plus, when the lease
is over, you give the computer back. If you had bought it, you’d still own it.
• A deal is a deal With a lease, you still have to pay for the equipment even if you
don’t use it anymore. If your business changes or leased equipment is no longer
needed, you’re still obligated to make the monthly payments.

NOTE If you do decide to lease, work out an early-out clause in your contract. You’ll still have to
pay something, but you can lessen the sting. Also, you may be able to purchase a “technology
refresh”, where you can upgrade your equipment as some point in the lease agreement.
Buying Buying equipment also comes with its own set of pros and cons. Pros include:

• Ease in comparison to leasing Rather than mess with agreements and having to
return equipment at a certain date, when you buy your equipment, you go out, you
buy it, and it’s yours. Lease terms can also be tricky to negotiate, and you might end
up getting unfavorable terms or spending too much.
• Maintenance is up to you Leases usually require you to follow a maintenance
schedule established by the leasing company. When you own the computers, you
can decide when to defragement hard drives, install operating system updates, and
so forth.
• Tax deductibility If you buy the computers, you can write off the price from your
taxes. If you lease, you can only write off the monthly cost.
There are also negatives to buying equipment:
• High initial outlay If you buy your computers, you’ll have to spend that money
up front. You may have to use a lot of your credit lines to make the purchase or dip
considerably into the company coffers. That money could have been used to build
the business through marketing, advertising, or something else.
• You’re stuck with it With a lease, when the lease term is over and the machines go
back to the lease company, disposal becomes the company’s problem, not yours.
However, when you own the computers, you have to figure out how to recycle or
repurpose the machines.

Green Design
An important area you should keep in mind in your life cycle considerations is designing
your system with environmentally responsible use, retirement, and disposal. When
designing your system, keep these thoughts in mind: