To Build or Search? Which is Best for Your Business
harkins / December 18, 2017
When starting or expanding a business, the building is one of the most critical decisions. You want everything to properly service clients while making a wise investment. If you’re thinking about building your commercial property, plan carefully. Keep a few things in mind when choosing to build or search for business property.
Length of Time in Business
If you’re working on a startup, don’t jump the gun with building a brand new property. Having some years behind you is beneficial for financial and longevity reasons. You need to make sure your plans are solid. That way you can bounce back if things don’t work out. You should also be able to sustain cash flow during the downtime of moving or building.
Amount of Liquid Assets Available
Having a substantial amount of business experience should mean having capital. If you don’t have the cash, you should have access to it. Whether you’re building or searching to rent/buy, you’ll need access to funds for fees. For buying, you’ll have closing costs, administrative fees, down payments, etc. When building, you’ll have those fees on top of those for the land, contractor, and architect.
Condition of the Real Estate Market
If the market is hot, your search to find a suitable property might be a challenge. It’s not impossible, but you might come out better building to satisfy business wants and needs. It all depends on what you’re looking for and how much work and time you’re willing to invest. If it’s not a buyer’s market, the deals might be few and far between.
Type of Business You’re Running
Knowing the business’s operational needs and future goals is important. If you’re opening a restaurant, you’ll probably have more options by searching. Restaurants open and close often, leaving behind vacant buildings. If you need a unique operating space, you may need to build for the customized features you need.
To build or search depends on your business needs. Think about your goals for the business. Evaluate where the business is financially and with meeting those goals. Also, consider if you see yourself adding real estate to your portfolio. This will help you decide whether building or searching for property is right for your business.
« Previous Next »