To set-up a small business in the absence of considerable funds is yet a decision that requires some considerations. With some advantages and disadvantages of renting an office space, we therefore feel that the decision of expansion has to be made according to the needs, duration, capital, return, and success of the business. Of course, there is no one clear concise answer to the question – Should you rent office space or buy an office space? But there are some reasons why you may or may not want to buy an office space. If you have stable long standing counseling practice that you believe is going to be consistent further for a long run, then you may prefer to run your business in the same location and stay the same size. At this point, buying an office space might be a real good idea for your business because instead of paying rent, you may be building equity in that space. However, if you have plans to expand your business and not certain about the longevity of it – like, it would shrink in size after years or will change direction or focus – it wouldn’t be recommended to buy an office space at this scenario.
Renting an office space gives lot more opportunities to small business entrepreneurs. One of them is use of the shared space at affordable rates, which is also a growing trend nowadays. Besides the obvious cost saving benefit, it offers other perks, as well. Such as, small businesses could have centralized receptionist, and centralized accounting systems instead of their individual ones. Also, with shared space sharing, entrepreneurs get a chance to network with other entrepreneurs and thus collaborate with each other.
There is also a headache factor when it comes to buying an office space. In case of your own office property, you have to invest some costs on its maintenance. But, if you’re a renter then you don’t have to worry about up keep and maintenance as much because, that is landlord’s headache not yours.
With the purchase of office property, entrepreneurs will face issue of less flexibility and less freedom to change locations later. However, it might be beneficial for some businesses to purchase than renting, because on annual basis, rent can increase at any time. And, those who rent office space, the market will dictate them to end up paying high rental costs at long run.
— RE/MAX Heritage (@RemaxHeritageTX) 25 de febrero de 2018