Your business is growing, and now you’re ready to buy a new building for it. It’s a great time, but also nerve-wracking. You need the space but also need the best price so your business can both grow and remain profitable. Here are tips on finding the right building for your business.
Save More Than Needed
You can usually take out a loan if you’re able to make a down payment of at least 20 percent of the total cost of the building, but that leaves you open to unnecessary risk. Stefan Soloviev estimates that many business failures are the result of too much debt. There are always times when revenues are down, so don’t count on constant sales to cover a high mortgage payment. Save more than half of the total cost of a building before you buy it.
Go for a Smaller Building
You may dream of having that spacious office, but by going with a smaller size, you can save money and cut down on the amount you’ll owe. Look at the number of people working for you and look for a building that will fit them, and not a crew of hundreds more.
The only time it would be wise to buy a larger building is if you plan on renting out office space for additional revenue. Use the rent you receive from your tenants to pay off your mortgage faster.
Find a Good Real Estate Agent
While you have to learn many skills as an entrepreneur while building and running your own business, real estate laws shouldn’t be one of them. Hand it over to the professional and save yourself the stress.
Get the Building Inspected
Hire a professional inspector to check every inch of whatever building you are thinking of buying. Make sure the foundation isn’t cracked and the roof is sound. Check for infestations. Also, have the wiring inspected. If you take out a loan from a bank, you’ll likely be required to take this step anyway.
If You Decide To Get a Loan
Shop around for the lowest interest rates available. Make a long-range plan on how you can pay that mortgage off early. The sooner your mortgage is paid, the less you owe and the more sound your future will be.
By following these steps, you’ll enjoy searching for the right building for your business and will be comfortably settled in your new location in no time.
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