All the hard work has paid off so far with business rising and sales going well. Now it’s come to the point where you need to expand as your little office at home doesn’t quite fit the needs of your growing business. Purchasing a property isn’t just about situating yourself in a space so you can run your business from it. You still need to consider several aspects of your business before putting an offer in. Here are points you should consider before purchasing a property.
Depending on the services or products that your business provides, the location should be on the top of your list of considerations for purchasing a commercial property. For example, if the business specialises in retail, you want it to be located in a heavily populated area where customers can travel to it easily and identify the store. Similarly, if you’re more office based you’d need to question whether the surrounding area is a place you wish for clientele to meet you. If you work remotely, this may be less of an issue.
If your business is performing well, you’ll have a better idea of the size you’d expect your company to grow by. It could be that in the future, your staff members could double, in which case you’d want to purchase a larger property to fit more staff members in. If you’re unsure there’s the potential to rent rather than commit to a purchase and making a long-term investment. Be wise when thinking about your future endeavours.
Health and Safety
Most important of all should be the health and wellbeing of the people in your office space. The last thing you need is a building that risks the health of your fellow colleagues and staff members around you. Get a full examination of the property to make sure it’s up to scratch, will there be any additional costs that may be involved like having to install a ventilation system or air condition systems into the property. A poor quality office space could run the risk of major costs in the future.
What tends to put many business owners off with purchasing a property are the upfront costs. The deposit tends to be a large sum so think about how much money you have and whether you can put that forward on top of the costs you’d need to fork out once the property is purchased. Mortgage lenders tend to range the deposit at about 20% of the value of the property and to show that you can sustain the payments of the property, they may even ask for a business plan.
These considerations should be helpful in making your decision a little easier about whether the property that you’re looking to purchase is right for you. Purchasing a property is a major commitment and shouldn’t be taken as a knee-jerk decision. Understand your business, your future plans and how you wish to go about your business.