Buying a house requires strenuous credit checks and paperwork, but buying a space for your new business can be equally stressful and complicated. Before purchasing office space for your business, understand what you are getting yourself into and prepare for what’s to come.
You Will be Spending Money
You already have commercial aprons and wholesale products to buy to keep your business afloat, but any real estate purchase requires spending money. Expect to spend about ten to 25% on the total cost of the building for a down payment and any other sneaky fees that might creep in.
Location, Location, Location
A great location = potential for lots of cash flow. When you pick a site for your company, take some factors into consideration before deciding if it’s a winner or not.
- Is it located in a place where your target audience will see it? Are there other amenities nearby (like gas stations and parking lots) to draw in clients?
- Is it easily visible from the street or is it hidden? Could landscaping help its visibility?
- Can you afford its utility bills like water and power? Moreover, can the building handle the amount of power you will be running through it?
Up to Code
Opening your doors to the public is a risky endeavor for so many reasons, but don’t let your building be one of those reasons. Have an inspection done to ensure that you meet or exceed the state and county standards. This includes plumbing, wiring and the overall wellness of the property. Knowing that your building is safe can take a lot of money and time to make repairs, but it is money well-spent.
Buying a building instead of renting office space is a smart move for entrepreneurs. Understand the risks involved before signing over your hard-earned money.