Being a small business It can be quite difficult to decide whether its best to buy or rent an office space.
As simple as it sounds, finalising on the wrong decision can cause your company a whole heap of financial problems in the future. With years of serviced office spaces in Nottingham, we have worked with a broad range of clients, each with their own individual needs. It is absolutely fundamental that you make take the time to make an informed decision. We hope this quick guide helps.
Think about your flexibility
As a new or growing business, you’ll know how important it is to stay as flexible as possible. Regardless of your market, your company will be continuously evolving and growing at astonishing rates. It can be difficult for us to envision long-term plans and we tend to forget to include the number of employees and the office space required. You may be starting of with a small team now, but in a couple of months you may require a larger space, leaving you with two decisions: sell the property or expand it.
Expansion can be pricey, whilst purchasing out of convenience with the plan to sell in the future seems like the preferred option, instead it will cause you to be weighed down. Though buying a property can ultimately provide you with a space that you can call your own, renting is the best option to avoid spending huge amounts on something that could hinder you in the future.
Considering your finances should be top priority when making any decision. Although it may seem like a great idea at the time, buying an office space may not be the best choice for the short or long term.
Be wary of mounting costs
Buying a commercial space will cost you a considerable amount upfront, as down payments can range between 10-25% of the full property cost which can be quite a struggle for some small businesses to come up with.
Property maintenance costs alone can become a large burden. Subsequently, you could find yourself splashing out on items that you wouldn’t necessarily need to worry about when renting. Such as kitchen equipment, high-speed internet, and electricity. If you choose a rented office space like ours it will all be included in your weekly rate. Giving your business the opportunity to focus your efforts and funds on more important work.
Owning a property gives you the power to do whatever you want within your building. However, with this freedom management requirements crop up. Repairs and property maintenance fall on your shoulders, which as a growing business you won’t want to be dealing with.
Renting out an office space provides you with the same benefits of a highly productive environment without being tied down – allowing you to have a smooth transition if you do decide to purchase further in the future.
Nevertheless, If you are still unsure about whether renting is for you take a look at the services we provide. Need more information on how you can rent an office in Nottingham? Feel free to contact us, we are always happy to help.