All business owners face a conundrum at some point in their existence; buy or rent? Do you go out of your way to buy your business premises or should you lease it instead? Both of these ideas have their pros and cons, but today we’re going to look at the first option; buying.
What’s so good about buying an office compared to renting one? Understandably, doing this will be a big financial decision as it costs money to buy premises. The main advantage of renting is that you spread your costs over time. So, you need to have some pretty big positives to sway your decision in favor of buying. You’ll find the top reasons listed below, have a read over them to see the surprising benefits of buying your business premises.
Reduces Your Monthly Expenses
A lot of people argue that renting an office is better than buying because of what I mentioned above. When you rent, you don’t have to part with a huge sum of money all in one go. However, is this really beneficial for your business?
Think about it, if you buy an office, then that’s a huge chunk of your monthly expenses gone right away. You don’t have to deal with monthly rent, which means you can potentially widen your profit margins every month. Buying an office may cost a lot of money, but it’s a positive investment on behalf of your business. It could temporarily put you in debt, but you have to realize this is good debt. As you can read on money.howstuffworks.com, there’s a big difference between good debt and bad debt. It’s the kind of debt that benefits you in the long run, and you shouldn’t be afraid of it. Furthermore, you will eventually pay off the cost of your office over the course of a few months or year. Your business might be in its fifth year of operations, and you’re well clear of office debt. However, if you rent, then you will just continue to rent year after year and expend a lot of money in the process.
If you’re torn between buying or renting because you don’t like the idea of spending a lot of money all at once, remember this point. Buying is a good investment and can greatly reduce your monthly expenses, lowering your overheads.
Full Control Over Everything
Perhaps the best reason to buy your premises is that you get full control over everything inside it. This enables you to take care of any problems you might see in the office that a landlord might not deem essential. As a result, you can create the perfect, safest, work environment for your employees.
What issues could you have control over? Well, think about certain things that might be working okay but could do with getting upgraded. The first things that come to mind are your electrics, sprinkler system, office furniture, etc. You could rent an office that is possibly wired using old technology, so all the wall sockets offer slow charging rates for your devices. If you bought the office, you could upgrade the whole system, so it’s more modern. Sprinkler systems are almost always out of date when you move into an office. But, landlords are reluctant to do anything as they might still work. However, if you buy an office, you can install a more modern system. Or, you could fix an old one and protect it from corrosion. There is a way to do this, and you can read it at ECSCorrosion.com if you’re interested. To finalize this point, some rented offices come already furnished, meaning you have to live with the furniture that’s already there. If you buy an office, you can fill it with the most ergonomic furniture out there to make everyone more productive.
You see, the main argument is that buying an office gives you control over everything inside the building. You decide how it’s all laid out and you can modernize your premises while also improving the safety elements.
Potential Money Making Opportunity
More often or not, when you buy your business premises, you buy a building of sorts. Some people even buy houses and convert them into a set of offices. The point here is that you could buy a building that you don’t need full use of. For example, you could have a building where your business uses the top floor, and the second floor is completely free. Here, you’re presented with a great opportunity to generate additional revenue for your company.
A lot of businesses will own their premises and rent out some of their space to other companies. They pay rent, and you get to use that money to benefit your business. It’s a very simple concept, and it makes the investment of buying an office building even more worthwhile. It can also help you repay the costs of buying your premises in a much shorter time frame too. Needless to say, when you rent, you can’t earn additional money from your premises. You’ll likely rent office space in a building owned by someone else.
It’s so important that your company keeps generating money on a regular basis. Doing so can help keep your cash flow positive, and you can read more about that on entrepreneur.com. All businesses should look for additional ways to make money, and this is one of the best ideas out there as you bring in more monthly income.
It should now be apparent how buying an office can benefit your business compared to renting. Instead of high monthly costs, you’ve now got reduced ones with additional income! Plus, it’s so important to have full control over all elements of your premises. This allows you to make it as safe as possible for you and your employees, ensuring no problems affect you. It also helps you create the perfect working environment for productivity. Of course, there are a few downsides to buying compared to renting; no idea is perfect! However, it could be the perfect solution for your business, and you should consider these points if you’re torn between the two options.