Finding the perfect home for your business can be a difficult decision to make and there are so many factors to consider. One of the most important decisions to make is whether to rent or buy office space. As a start-up business, this decision can even be more difficult to make, as you will have a smaller budget and will need to plan ahead for future growth. Buying office space boasts stability and exponential growth, whereas renting a property gives you more flexibility and freedom to make drastic changes.
Location, Location, Location:
It’s always important to work within your means. For certain industries, location is everything. Location can be the reason why a potential client, customer or investor chooses your service, in an otherwise saturated market, but it can also be an unnecessary entity. Although good location is always better, it should not be your main priority if you are just starting out. Your wallet is your company’s life blood, so make sure that you choose somewhere you can afford, rather than somewhere to show off. Location is also important to existing and new employees. If you are situated near a car park, or a public transport station, near to convenience stores and food vendors, then your business is going to be more appealing and your employees are going to be happier.
Renting vs Buying:
More often than not, businesses will rent their office space, which resultantly means that the market is large. There are definitely pros and cons that you need to identify before entering a rental agreement. If you are looking at the short term prospects, then renting a space doesn’t cost a lot of money up front. Similar to renting a residential property, landlords will require a security deposit, but this will only be a small fee compared to a commercial mortgage. Although renting can be cheaper short term, the rent may increase significantly over time, so you will have to be wise and factor these changes into your budget.
There are two types of leases available when you are looking for an office space: flexible leases and conventional leases. Conventional leases require a minimum commitment to the office for at least 5 years. With this lease, you will be given an empty office space to fill with your own desks, computers, counters and stalls etc. With a flexible lease, you can rent the space for as little or as long as you require, which means that the property comes with desks, computers and other useful utilities. There are certainly pros and cons to each type of lease.
Buying an office is a huge commitment and can either make or break a company. It’s very unlikely that you will be able to afford to buy if your business is very new. Buying a property means that you are completely tied to one building, which can prove difficult for any plans to drastically expand your team. However, buying a property gives you the freedom to redesign and modify the space internally and externally – you can really turn it into a place you want to be every day. Buying a property is similar to buying a house, you will have to do a lot of research and it is a wise idea to consult with property experts so that you know exactly what you are getting yourself into.
Choosing the Right Property:
Choosing the right office space is completely different for each business. It’s important to always factor in cost first and foremost – both long and short term, how convenient the location will be for your employees, what your long and short term plans are for the company and how lucrative of an investment the property will be. Never rush into making a decision and explore every avenue and confer with experts before you sign any contract or make any payment.