So, you plan to start your first business, but you don’t own a location yet? A business start-up requires many investments, starting with energy and time and continuing with actual money. Putting together all the ideas, the business plan, the future prospects, your target audience and so on is just the beginning of the journey. There are details that need to be carefully considered on the way to success. One of these details refers to your future business’ location. Each business needs a place to perform its activity.
You can either rent or buy a location that’s suitable for your company’s requirements. Of course, this depends on how much money are you willing to spend all at once. Rent is comfortable for people who consider that their businesses are going to be profitable from the very first moment. Buying is more suitable for business owners who already saved some money for the initial investment. Properly planning the budget is an absolute must, and in case you are not familiar with the real estate industry, learning the basics related to this topic can also help.
For beginners, renting would be better because it’s easier to manage the expenses at the end of the month and you are not tied to the same building forever. When buying a property, you risk regretting your decision if things don’t go exactly as you planned. Renting gives you the opportunity to change your mind and manage your profits/losses more effectively. Anyway, depending on each person’s situation, any option can be viable. Buying is great for already-existing businesses that desire an upgrade since they already know what their monthly profits are. Again, buying is permanent, so think wisely before making the decision. Here’s a list of things to do and to avoid in your business journey:
Don’t opt for credits
If you know you cannot afford a certain property, rushing to the bank and getting a credit is definitely not a good option. First of all, you will need to make additional payments each month. Think about the fact that your business might not be as profitable as you think in the very first months. How are you going to pay for the credit if things don’t go well? What is going to happen in case you no longer want to undertake your business activity in that specific location anymore? Ask yourself these questions first before making a decision you will later regret. Renting a property instead of buying one that you consider too expensive is much recommended.
Don’t get behind on payments
As mentioned before, credits are not a good option at the moment. Paying for a credit is closely related to getting behind on payments. At first, you won’t be able to tell how much money your business will produce. At the beginning of each road, there are obstacles to deal with, unexpected situations to solve as quickly as possible and other numerous events that you will get used to in time. Managing your expenses at the end of each month and making sure that you don’t get behind on payments can ensure your business’ success. Unrequired investments play no role in a new business’ journey. Stick with the budget you own and learn how to make the best out of it. Profitability will start showing in no time and you get the chance to purchase whatever you consider relevant to the company.
Learn how to negotiate
Luckily, the art of negotiation can be thought. As a businessman, you should learn how to play with words, to be persuasive, to convince other people that your opinion is correct. In order to do that, you need to focus on certain strategies. Negotiation can be focused on clients, potential investors, or even sellers. In this case, you want to rent/buy a property for your business, so negation is seller-oriented. Study the market before bringing up your price offering and study the seller carefully, so that you know what their perspective is. Each offer should be beneficial for both parts of the negotiating process. Don’t stick to your own perspective or your individual requirements. The seller might have something to say as well, and if you are not acting right you risk losing the property entirely. Renting is all about understanding what your needs are and what the seller’s conditions are.
Know your options
The secret is to thoroughly know what your situation is and what possible options you have. Start by planning your financial goals for the following year. Financial independence is one goal you should strive for, instead of struggling with lengthy debts and complicated loans. Rentals can help you manage finances better. Think about hiring a whole location such as the Bruce Building. The bigger the location, the higher the rent – so see how much space your business actually needs to undergo all the activities. If you need just a room or two, rent a business apartment or specially-purposed office rooms. Both options are suitable for a start-up business. Plus, you shouldn’t worry about future investments because you are probably going to switch locations in a while. Understand the basics of a good real estate deal and take your time to compare all the possible options you have.
Final thoughts
Don’t forget that choosing a business location is strictly related to its specific. Depending on the industry that your company is part of, the location has a certain role in producing money at the end of each month. If your business is not related to working with people anyhow, and it is not necessary to be easily accessible, location matters less, so you can select cheaper places. Plus, consider that technology is rapidly evolving nowadays. and freelancers started to prefer working from home rather than in a fixed business location. Analyze the situation you are in and see what the best decisions you can make are. Ask for advice whenever you think it would help you out.
