Are you looking to develop your business and take it to the next level? There comes a point where you are forced to consider obtaining more office space to permit increased growth. This is when the commercial property conversation comes into play. Should you buy an office for your business? Or, should you continue working with your current setup, or rent office space instead?
We aren’t going to look at all the different options today. Instead, we will focus on renting office space and discuss how it can benefit you, your career and your business.
There are plenty of stories about how becoming self-employed can be as much of a curse as it is a blessing. Many individuals choose to become self-employed so that they become their own boss. Yet, there are plenty of business owners who are forced to invest more hours than they would in a conventional job role. This need to work overtime varies greatly depending on industry, demand and staff members. The most important point is that you want as much flexibility in your career as possible.
Renting office space is easily the most flexible method of securing a space to host your business. Purchasing an office locks you into your decision and forces you to deal with whatever is thrown your way without giving you room to adapt. On the flip side, when you rent office space, it allows you to change to your business’ current situation and climate. This flexibility puts you in a much more secure and less stressful position, leading to a significantly healthier work-life balance.
As with purchasing any property, a large deposit is required for you to take the first step and confirm your ownership. Similarly, there are plenty of legal fees and paperwork to undergo before making your purchase. This all adds up to a significant upfront cost. On the other hand, if you rent office space, you will avoid all of these costs. This solution is perfect for low turnover small enterprise. All it takes is a signature on an agreed day and you are ready to move in.
Take note, many different businesses and leases have different details and requirements. So, be sure to check the small print before agreeing your ownership. Similarly, there are different fees involved with different locations as the local and national government could request different taxes, fees or systems to be implemented. For example, a Manchester based office might require increased business rates compared to one in Los Angeles. If you’re interested in seeing an example of a commercial property up for rent, you can find more information here.
After a business purchases a property, they are tied to it. What if the property falls in value and they need to move? Then, the business is going to experience a heavy loss on their already expensive purchase. This is something that renters don’t need to worry about as they haven’t invested in the property itself. They are free to terminate their lease or move on whenever they please, depending on the terms of the contract of course.
Similarly, if rental prices were to increase to a level that the business could no longer afford, your business is free to escape and downgrade to a cheaper office freely. Thus, you would avoid the risk of being stuck in an unprofitable scenario. This is a privilege that a business owning their office simply doesn’t have, as they must sell their current property before being able to afford another.
These are just three of the major advantages that renting office space has when compared to buying. If your business is small and you’re looking to expand or make a career of it, then definitely consider renting as a viable option.
Feature photo: Johnson Wang / Unsplash
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