When you’re first trying to get a small business off the ground, there are a bunch of different steps that you’ll have to take. One of the most important steps is going to be investing in an office space for your small business.
Whether you rent or buy office space, this space is going to make your small business look more legitimate. It’s also going to give your customers and clients a place to come when they want to do business with you.
Prior to looking around at different office space solutions, though, you should have the rent vs. buy debate. It’ll help you decide if you should rent office space or buy office space for your small business.
There are lots of pros and cons associated with both renting office space and buying it. We’re going to work our way through some of them below to help you figure out which option would work best for your small business.
The Pros of Renting Office Space
More often than not, those just starting up a small business will usually decide to rent vs. buy when it comes to office space. This is because it typically makes the most sense for them to do this as a result of all the benefits they’ll get to enjoy.
First and foremost, renting office space vs. buying it will be more cost-effective for those with a new small business. They won’t have to worry about spending tens of thousands and sometimes even hundreds of thousands of dollars on an office space upfront. They can instead rent an office space for an affordable monthly fee.
Outside of this, renting an office space also allows a small business owner to get their hands on an office space without committing to it long term. If their small business fails or if their small business grows quickly and they need to move into a bigger space, they can do these things without a problem.
Additionally, renting office space will prevent you from having to pay for a lot of the repairs and maintenance that will need to be done to the space over time. Whoever you rent the space from will be responsible for having to worry about these types of things.
The Cons of Renting Office Space
There are lots of benefits that you’ll get to enjoy when you rent an office space versus buying it. But there are also a few drawbacks to doing it that you’ll want to keep in the back of your mind.
For starters, you obviously aren’t going to own an office space when you rent it, so you’re going to have to check with the owner of it before making any improvements to it. You also might be on the hook for paying to make improvements to an office space if the owner doesn’t deem them to be necessary. And you won’t benefit from this in a financial sense over the long run.
You’re also going to be at the mercy of the owner of an office space when it comes to the price you’ll have to pay for it. If they decide that they want to raise the rent dramatically before you sign your next lease, you won’t have any choice but to either pay them what they want or find a new office space.
The Pros of Buying Office Space
As we just alluded to, buying an office space isn’t always going to be an ideal solution for the owner of a new small business. But if you have an established business, buying office space might be in your best interests.
As long as you can afford to buy office space, you’ll add an asset to your business when you do it. It’ll make your business as a whole worth more and allow you to sell your office space in the future for a pretty penny, especially if the value of it goes up.
In addition to this, buying an office space will put you in a position where you can do anything you want to the space without answering to anyone else. You can update it whenever you would like or make changes to its layout if you want without having to ask for permission.
You’ll appreciate being able to do whatever you want to with an office space when you buy it. You’ll feel a sense of ownership over your business that you wouldn’t feel otherwise.
The Cons of Buying Office Space
If you’re going to buy office space for your business, you’ll need to be prepared to spend a nice chunk of change. Even a small office is going to force you to spend a lot of money all at once, which isn’t something that every small business can afford to do.
You’re also going to need to be aware of the fact that you’ll be responsible for making all the necessary repairs and doing all the necessary maintenance to an office space when you own it. You won’t have a landlord to fall back on when you experience, say, a roofing problem or a plumbing issue.
These things could very well change where you fall on the rent vs. buy debate. You should consider them before deciding that you want to buy office space for your small business.
Bringing the Rent Vs. Buy Office Space Debate to an End Once and for All
Before you rent or buy office space for your small business, you should think about all of the pros and cons we just talked about. They should guide you in the right direction and help you settle the rent vs. buy debate.
You should make it your mission to find the right office space for your particular small business. It could make or break your company and determine how much success you’re ultimately able to enjoy.
Want to get some more tips on making your small business more successful? Look for them in the other business-related articles that we’ve put up on our blog.