Deciding whether or not buying a building or leasing a space for your business is a big decision. If purchasing a building is the best option for your business there are key items to think about when going through the process of finding the right building. Keep the following items in mind and you will be sure to find the space for your business.
* Define and understand your needs. Make sure the decision to buy a building fits in with your business plan.
* Allow flexibility for growth or contraction. You do not want to purchase a space too large if you will be downsizing in 5 years. You would also not want to invest money into purchasing a building you will sell in order to grow your business in 5 years.
* Evaluate the opportunity as an investment as well as how the property fits your needs. Do a lease vs. buy analysis as part of your financial analysis.
* Know the market and your alternatives. Hiring a Realtor® that knows your area and situation is the best move. A Realtor® will have the negotiating experience to get you a great deal plus they will have access to all the available properties on the market.
* Do space planning and costing prior to purchasing a property. Ensure that the space you want to buy will work for your business or that the changes needed are in your budget.
* Evaluate your opportunity costs. Is the investment return comparable to the additional return you could get from investing the money in your business?
* Compare value with a build to suit option. How much more would it cost to build your own building if this option is feasible?
* Obtain the services of a professional representative to avoid costly mistakes. They do this for a living and can help make sure your decisions are sound.
* Location, Location, Location! This is always important when it comes to resale and appreciation.