The time has come to get a business premise for your company, the question is of course, should you buy or rent this space? This is a question that many business owners struggle to work out, as there are pros and cons on both sides, so it’s just a case of working out which option is the best fit for you and your company.
Bearing that in mind, to help you decide whether to buy or rent a business premise, below is a guide to the ins and outs of each so that you can more easily compare your options.
The initial cost
The first thing to think about is the initial cost that comes with buying property for your business to run from. The deposit won’t be cheap and it’s important that you understand that. While there are plenty of commercial mortgages available, these don’t tend to cover the deposit, so this is something that you would need to get on your own. If you’re desperate to buy rather than renting, then perhaps you could consider bringing a financial investor on board to help make purchasing a commercial property more affordable?
The next thing that you should consider is the risk that comes with buying. Buying can be a great step to take if you want to put your own stamp on the place, but it’s also important to realize that you may need to require planning permission for certain changes, and there is always the risk that this will be denied.
While purchasing a commercial property gives you greater control over how you use the building and how it is laid out, it’s important to bear in mind the responsibility that comes with purchasing a building rather than renting it. For instance, when you rent, if you wake up and the building has had its roof blown off in a storm, it’s not your responsibility. Whereas, if you own the property, it’s down to you to deal with the issue.
What it’s important to consider when choosing a business premise is flexibility. You need to think about your business and its future, and what the future looks like. If you rent and your business premises become too small, you can easily move to a new location. However, if you own the property that your business is run from, this can be a little tricky. That being said, if you opt to buy a commercial property that has the space for you to expand your business should you need to, this won’t be a problem.
The question of choosing whether to buy or rent your business premises is one that has no direct answer. It’s the kind of question that you need to work out yourself, taking into account your personal situation. Every business is different, which is why every business has different premise needs. Just make sure that when it comes to choosing your business premises that you think carefully about each option and choose the one that is the best fit for you and your company.
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