Running your own business and watching it grow can be an incredibly satisfying thing. Sure, you have your kids, and you love them with all your heart – but in a sense, your business is somewhat like the third or fourth child in your life! After all, we’ve all heard people refer to their work as their ‘baby’ before.
Business expansion is something that happens over time; once your company has begun turning a profit. Once it does, however, you may be surprised at the sheer rate at which things progress. Before you know it, you may need to hire another ten staff members to cope with the increased rate of supply and demand – and you may also need to upgrade your workspace too. At present, you may rent your office, or you could even run your business from home (even with staff in tow!). But buying business premises could instead be the solution to dealing with a company that’s growing quicker than you can keep a handle on. It doesn’t come cheap, and you will need to be prepared to invest a fair chunk of your capital into the property that you know is right for you and your team. However, providing you use the space wisely and you keep the future of your business in mind, your business property could end up being one of the best things you ever put your money to. Here are a few reasons why.
You can create a space perfect for YOU
The age old issue with renting, whether it’s residential or commercial property, is that there’s only ever so much you can do with the place. Rental properties are designed to appeal to the masses, as obviously, that is who the landlord is appealing to. This leaves you with very little leeway over what you can do regarding modifications and decorations to your office space. When you’re just starting out, this is perhaps not much of a problem, but when you’re developing, it can be beneficial to put your twist on your office. This can either be in a practical sense – such as if you needed to make more space for bulky office equipment – or in a more decorative sense, like painting your staff room a bright and uplifting color.
You can climb the property ladder
Okay, so you might already be on the property ladder with your own home. But it never hurts to have more than one property, especially if the second building is commercial. Investment properties are great for diversifying your portfolio, and commercial property is more popular than ever. In fact, it has taken over residential as the most popular choice for investors wanting to buy-to-let – so when you end up upgrading your workspace again (something that’s likely to happen as your business moves on), you can simply rent out the old office to new tenants. Or, alternatively, you could sell it for a profit, and reinvest the money back into your business. The good thing about property (commercial or residential) is that it is only ever increasing in price. So, you could also buy now and renovate in the hope of selling in the future – but just make sure you don’t make any changes that would put off a prospective buyer!
You will have clearer costs
Keeping tabs on all your businesses finances can be a bit of a challenge at times. Even with a trusted accountant by your side, it is still easy to feel overwhelmed by the sheer number of outgoings and incomings your company deals with on an everyday basis. The problem with renting is that the market can fluctuate at any time, and when the time comes to resign a contract, your landlord could decide to increase the price of the property. Buying the property outright gives you and you alone ultimate control over the building and its facilities, which can be advantageous for a number of reasons. Of course, securing a mortgage on a commercial property is not always easy, as there can often be quite a high amount of risk involved. Lenders are reluctant to offer you a definitive rate without examining and considering the property first – it really is a case of judging every case on its merits. You can, however, get a fixed rate mortgage if the total amount you need to borrow is less than £500,000, and this can certainly help you keep a firm hand on your monthly costs.