Many small business owners struggle with the issue of either buying, renting or leasing office space. Unfortunately, depending on who you ask, you’ll get a different opinion from everyone. With each business bringing its own unique set of circumstances to the table, the decision rests ultimately on what best will suit your needs as a small business owner.
There are a few questions you can ask yourself that may help you decide on the right course of action:
1. How is your cash flow? Can you afford to put down a large down payment if you decide to purchase, or is a monthly lease payment a more affordable option?
2. How long do you plan to stay in the building? If its short term, maybe renting is a better option. However, if you live in a community where real estate values continue to rise, buying may work for you.
3. Are you ready for the additional responsibilities associated with owning a building? Is handling the maintenance, security, remodeling, and/or other management issues of a property owner going to be too much?
4. How much will your business grow? Ask yourself if you believe your business will add more employees or require more space in the next few years. Do you have the space you need to continue growing?
5. Do you like the neighborhood? It may sound like a silly question when looking for a business location, but it isn’t. Having a long and rough commute to work, fighting insufficient parking or seeing a continuous decline in real estate property values are all issues that can negatively impact your business.