One of the decisions you’ll face when you start your business is where to locate it — and whether to buy, rent or lease that space. The “buy” decision may even be attached to a pending decision about whether to buy an existing business, perhaps complete with the property in which it is located.
AllBusiness.com Articles recently ran a series on Finding Office Space. Part 3 of that series was Buy, Rent, or Lease: Which Is Right for Your Small Business. The article points to some benefits of buying, including Asset Appreciation, Fixed Overhead Costs and Potential to Sublet. These all are genuine advantages, but the article also gives you some questions to ask yourself. Your answers might convince you it would be better to rent or lease. Some examples of these questions are:
- How is your cash flow?
- How long will you stay in the building?
- Are you ready to take on additional responsibilities?
The article concludes with links to other parts of the series on topics such as “Brokerage Firms”, “Tips: Looking to Rent” and “Negotiating the Best Office Lease for Your Business”. Find them all here.