Start-ups are continually looking for creative office space solutions like cafes, or hotel lobbies. These solutions are not suitable for a growing business, and you might need to start scouting for office space.
A time comes when the proprietor of the business has to decide between buying and renting office space. This decision will be an essential factor in determining the rate at which your business grows. It’s an important decision.
Buying office space is quite expensive. It’s especially so for a startup company. As if the cost is not enough of a challenge, your credit ratings will also determine how much money you can access to buy the office space.
The business environment of today is continuously changing with the increase in globalization and a rise in the use of ICT. Soon, many businesses will be remote and will be operating from the cloud and mobile phones. An investment in buying would be challenging to dispose of if the business goes remote.
With these and more factors considered, renting office space becomes the best solution for a growing business.
10 Reasons Why You Should Consider Renting Office Space over Buying
1. Superior Location
In business, presentation is critical. As a start-up, you may not be able to afford to buy in the exclusive locations you need to impress high profile clients. Going for rental office space like Business District Boston allows you the advantage of using a stylish luxurious and centrally located premise.
You benefit from state of the art conference rooms to hold your meetings. This will give your business the professional image it needs when interacting with networks, potential partners, and colleagues.
In addition to motivating you to get up and work on your enterprise, your clients will definitely take you seriously.
Having a superior office space also gives you a competitive edge among your peers in business.
2. Fewer Responsibilities
When you rent an office space, your focus is on growing your business as opposed to ensuring office maintenance is running efficiently. Managing a building is very time and labor intensive.
For instance, when you rent office space at Business District Boston, you will also have access to the meeting planning services and catering support. All you need to do is focus on your meeting and ensuring your clients, partners, or investors arrive.
In addition, the office spaces available to you when you rent space are amazing. You do not have to deal with Wi-Fi and other contemporary data systems.
Reducing the cost of utilities can significantly cut costs for your business. This gives you the critical amenities you need to grow your enterprise.
You do not have to spend time hiring cleaners, conducting electrical maintenance, and other issues critical to the running of a business office. The only decisions you need to make are ones that involve your business.
3. Free Working Capital
When you buy office space, you have just completed the first step. You still have a lot of work ahead of you including setting it up to meet your needs. You have to purchase furniture, light fixtures, and various soft furnishing to increase its appeal and comfort. This process requires another substantial investment.
Buying an office also necessitates property insurance, which you can avoid by renting office space.
Renting office space allows you to benefit from all the essentials you require without having to purchase them yourself. This will free up your working capital.
Renting also comes with business support, infrastructure, and the necessary technology to allow you to make strides in your venture.
Choosing to rent also protects you from tying up your money in the real estate costs incurred. Your money is safe and ready for you to use it in matters that are more urgent.
Additionally, you are safe from starting up your business with a massive mortgage to deal with.
4. Flexibility
When your business is still young, you may not know the direction you will take. The needs of your business now may not be the same a year or two from now. If you have bought office space, and your business grows in staff and stature, it could become inadequate immediately. This will now trouble you to look for someone to purchase the property.
In a year or two, your business could have gotten grand opportunities requiring you to relocate. Renting office space is advantageous since you will leave immediately you have met all outstanding obligations. Buying office space, on the other hand, could leave you with a significant loss. In addition, it has held up your funds, which could have been extremely useful in your new location.
If your staff grows and you need additional rental space, all you have to do is have a conversation with your property owner, and rent more space for your enterprise. You will not have to bear the costs that come with the expansion of your purchased office space.
5. Pay as You Go
A growing business will benefit from the pay as you go aspect of renting space. As an entrepreneur, you should always be looking for ways to save money when in business.
Unlike purchasing office space, where you will need to pay a large sum to cover your deposit and continue to pay your monthly mortgage payments, renting is a cheaper option. All you need is to pay your monthly rent expense.
It will also give your business time to grow, accumulate funds, and make the decision to buy much later when the business has taken shape.
You will also be paying as you go, or as per the terms agreed upon with the property owner. This gives you time to earn the money you need to make your monthly rental payments. The hefty amounts required for buying and leasing are unfavorable for a growing business with growing pains and continually changing needs.
The month-to-month basis offered when you rent office space gives you the adaptability your business requires to remain ahead of your competition.
6. No Set-Up Time
Setting up an office after the purchase is very time-consuming. It takes the skill of an interior designer to put the puzzle pieces together and create an aesthetically pleasing and professional office.
Why would you opt to put your growing business through all this stress if you can rent a ready office without the costly investment?
In addition to saving you time, it comes fully equipped and ready to start working. This means that you can focus on the things that are very important to you and your business without enduring the difficulties and roadblocks that come with setting up an office.
Like any responsible businessperson, it is crucial that you stay within your set budget. Renting a furnished office space is advantageous. It provides you with all the necessary functionality without the financial strain.
You have the benefit of selecting only the services you require and only add the ones you need when the need arises.
7. Professional Atmosphere and Room to Grow
Growing into the big shoes your dreams have laid out for you can be intimidating. However, renting office space allows you to get a feel of the large professional organization you need your business to grow to, as you work towards it. They give you the credibility and trust you need to retain clients.
The business environment is also better for growth and helps present your business professionally. Because the solutions are molded to fit your needs, your business can continue to evolve without the pressure. It allows you to remain flexible and to change your plan as you go.
8. Networking
Rental office space in an elite location means that you will rub shoulders with the right people. This will really help you network and possibly gain clients and collaborations.
If you rent a space like Business District Boston, you will share the building with other businesses of different calibers. This gives you an excellent opportunity to network without having to attend any galas and fundraisers.
While the businesses you interact with may not be in the same field, by connecting with them, you will be adding value to your company’s productivity. You will also gain the same networks as an individual in the business world.
9. Reduced Tax Paperwork
When you own a business, you will have very many forms to fill out and file. However, going for the rental space option will ensure your tax returns are easy for you to file.
10. Mobility
When you rent an office space, you can quickly relocate to a new country or region if your business grows in that direction. If you had purchased the office space, along with the furniture and fixtures, you would likely experience a difficult time trying to recover your money by selling your used business items.
Renting Space Is More Advantageous for a Business Than Buying Office Space
If you want to present your business in a professional manner without spending a small fortune, renting office space is a great solution. It allows you all the benefits of having your own office, and more, without causing financial strain.
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