So, you have decided to buy office space instead of renting? There are a number of benefits associated with going down this route. Not only will you benefit from manageable fixed costs, but also you will be able to make money on the premises and have the peace of mind that you won’t have any upheaval. With that in mind, read on to discover everything you need to know about going down this route.
THE COSTS ENTAILED
It is important to be aware of the various costs that are associated with buying office space. While this is a more expensive route, it is also the more profitable one. A lot of business owners also prefer this approach because it means that they have fixed costs rather than variable ones. But, what are these costs? This includes the likes of bills and maintenance, VAT, the land registry fee, estate service charge, business rates, and Stamp Duty Land Tax (SDLT). It is important to calculate all of these costs so that you can budget effectively.
HOW TO CHOOSE WHERE TO BUY
There are a number of factors that need to be considered when determining where to buy office space. Not only do you need to think about what is right for your business, but you also need to think about resale value too. Make a list of the factors that are most important to you. For example, do you need to be in a prime business location? Where is your target audience based? Or, is space more important to you? By having an order of criteria, you can be sure that you will end up with business premises that are right for you. After all, it is very easy to get sidetracked once you start searching.
CONDUCTING DUE DILIGENCE
When you buy a home, you conduct extensive due diligence, including having a professional property survey carried out. This should be no different when it comes to buying office space. A property survey will alert you to any underlying issues with the business premises you are considering, for instance, plumbing problems or cracked foundation issues. This will ensure that you are not subject to any unexpected and expensive repairs later down the line. Not only this, but it could result in you being able to negotiate a lower price for the premises too.
Hopefully, you now have a better understanding regarding the key steps that are entailed when purchasing office space for your business. It is important to work out your budget, as well as making a detailed financial plan of all of the costs that are entailed. You also need to make a list of priorities and have a clear understanding of what you are looking for. This will ensure you find business premises that are perfectly suited to your company while also enabling you to make a good profit in the future too.