Business is booming, pushing your company to a situation of inevitable expansion. A tiny startup office can no longer cut it since your growing team of skilled professionals are having a tough time working in the now cramped space that is your first workplace. For your business to make room for growth and motivate your employees to be more productive, it’s time to move out and find a better office space to work in.
You’re now faced with a tough decision: will you buy or lease an office space? You’ll have to weigh in all the pros and cons before going for the one that would be best for your business. This is where it gets tricky, though, since you’re about to make one of the biggest financial decisions for your expanding organization.
Yes, you’re elated that your business seems to be reaching a point of success, but your choice will make a huge impact on the company’s finances, so you’ll have to choose wisely.
The financial aspect of this decision will affect every aspect of the business. It’s easy to purchase office space that’s located in a prime area such as in a central business district if you have the capital to do so. You’ll be able to provide a nice workplace for your employees that have an impressive interior with new equipment and you can buy bulk office supplies to address their needs. There will be no expense spared if the company has deep pockets.
On the other hand, if you’re more careful about the business’s expenditures, signing up for a lease is perhaps the more prudent choice. However, you’ll also have to think about how long you can commit to a location or a building where you’ll be setting up shop. To help you find out, it’s crucial to know your organization’s goals in the next five to ten years. This will allow you to know if your lease is going to be sustainable in the long run.
There are many other factors to consider when making this huge decision. You’ll have to take each of them into consideration so you can reduce any financial risks that could hurt the business.
Ultimately, it’s all going to boil down to what the company can afford and how costs are going to be managed. Owning a piece of property or applying for a lease can help your business move forward and reach your company’s goals if done correctly and strategically.
To help you make the right decision, here’s a handy infographic guide for your perusal.