As you start your business, there are many things that you have to take into consideration. One of these is buying or leasing your own space. For example, you have more than enough money to start with. What path is wiser to take? Both decisions have their pros and cons. But here is a rundown of the advantages of owning a building:
You Can Save in the Long Run
Whether you pay upfront or on an installment basis, you can still save when you decide to buy a property. First, you can save on your taxes. A quality cost segregation study will help you see how much tax liability can be reduced. Second, by buying a commercial property, you build on equity. This can help increase the value of your business.
Finally, even if you are paying off a mortgage, the amount is still less than if you rent a property. Also, mortgage payments are investments that will eventually be beneficial for you. This is compared to paying rent monthly, where the money works for the landlord instead of for you.
You Have Full Control
When leasing, there are specifications that a landlord may set. This can limit your ideas and the potential of your business. When you buy a commercial property, you have full authority over it. You can decide on the floor plan and design that will maximize the potential of your trade. You can also put some signage or any marketing tool without having to consult another person. Decision-making takes time when you are leasing.
Also, maintenance decisions will be on you. Many disagreements between a lessor and a lessee arise from maintenance issues. With owning, you take full responsibility and eliminate unnecessary tension.
You Can Use It as an Added Revenue
At the onset of your business and its younger years, the space that you need may not be that big yet. If you have a big property, you may consider renting out a portion of it. This way, it will serve as an added income to you.
You only have to be clear on your terms for you to avoid conflicts. Screening lessees and analyzing the stability of their businesses are also good practices. You have to think that the reputation of each will brush on another. Thus, choose businesses that will be beneficial for you.
You Have Stability
Stability comes in many forms. By owning a property, you do not have to worry if you still have a space for your business when a contract is up. You also have better control over your expenses. You do not have to be wary of an increase in rental. You will have a better grasp of your annual costs and allocate better.
Owning a property also speaks of commitment. You know that your business will experience ups and downs. But buying a building or property is committing to stay. This serves as a good sign for the community you are in. Customers will see you as a grounded entrepreneur. By establishing your space, they will love to grow with you.
You Can Have Flexibility
Having a property of your own is being open to growth. You can have renovations as you see fit. Your business will thrive better if it keeps up with changes. The key is to get a larger property than what you need at the onset. This will give you room to expand in the future.
When money is not an issue, consider owning a property for your business. This kind of ownership is always considered an asset.