Expanding the footprint of your business!

If you have got that valuable toe-in to a customer-site - favour Horizontal and probably more synergous integration over Vertical!

That is that main advantage of this is you have the equipment & training and are therefore capable of doing the job!

Tools & Building Materials Quiz

A quiz based on the prior post:

https://optimise-performance.blogspot.com/2021/08/tools-building-materials.html

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A few interesting examples, it can be blurry sometimes ~ test yourself 

- cover the answer up before looking! 

Tools or Building Material Quiz

Q: Scissors

A: Tools 

Q: Garbage Bags (Disposable)

A: Building Material
Note: This is a fairly common situation, other non - disposable bags may count as Tools  

Q: Chemicals

A: Building Material especially if they are in disposable containers

Q: Spray Bottle (non-disposable)
A: Tool

Q: Screws & their containers

A: Building Material

Q: Nails & their containers

A: Building Material

Q: Wood Biscuits

A: Building Material

Q: Scaffolding
A: Tools

Q: Sprinklers & Sprinkler Systems
A: Could be either!

Q: Bollards & Witches Hats
A: Tools

Q: Bunting
A: Tools
Note: Depreciates (Write-off) quite quickly

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(Many) Implications:

 

• (Importantly) - both Tools & Building Materials could be either Personal or Organisation owned
• If they are Personal record in your personal Financials 
• You don't want to dig through a whole bunch of plastic bags before looking for scissors etc ...
  
• Don't waste precious space in your tool box holding screws, nails etc as well astheir packaging!
• Generally Building Materials take up much, much more space etc ... and hence their storage cost needs to be accounted for

Tools & Building Materials

An important distinction to make on any building site - rather than throwing everything in the car, van or ute!

As can be seen by the below Classification:

As general rules:

1. Tools are subject to Depreciation - generally used multiple times ~ more than once 
2. Building Materials are consumables 'used up' as building progresses - used once or at most a few times 

Values subject to huge variation - tools are usually more expensive, especially power tools but this can depend ...