Avoiding Financial Risk Through Leasing Instead Of Building
When starting up a business, there is a lot of inherent risk involved
. Start up costs are often high while you work to perfect a product or a system. Creating a good reputation and building up a good clientele base can be stressful. There are all sorts of unexpected costs that pop up here and there. So when starting a new business, why take on the added stress of building your own building or office space? Leasing commercial property can be much less risky, and also has a lot of other added benefits.
The cost of constructing a building can be astronomical. Property in a desirable location can be very costly, and even difficult to find. Once the building is actually built, there are ongoing maintenance expenses, insurance issues, and other expensive and time consuming things that can be a source of stress, and continued economic strain. When leasing a work space, the rental company often takes care of all of the little annoyances and expenses that are inherent with maintaining a building. If the office air conditioning stops functioning, the rental company will take care of it. It is nice to have to worry more about your actual business, than the building you are working in.
Having a nice landscape definitely helps a business be more attractive to customers. Again, when leasing a property, the rental company will be in charge of taking care of the lawn and landscape. It is in their best interest to keep the landscape looking nice, because if you have business, they stay in business.
Leasing decreases some of the financial risk associated with running a business. If things unfortunately happen to go sour, and you have to go out of business, the worst you may have to worry about is a few months of lease left. However, if you own a property and a building, you then have the difficult task of either selling, or attempting to lease out your property to someone else. This could put intense financial strain upon someone who is already struggling. With a property rental company, if things don't work out with your business, as soon as the lease is up you simply walk away.
Another benefit to leasing space, is if things go much better than what you expected for your business, and you need to grow and expand, again you do not have to worry about selling real estate. You can simply move into a larger workspace.
Leasing real estate is a smart solution to the difficulty of owning and maintaining a property. Starting a business in a leased space is just one more way to cover your back, and be prepared should the worst happen.
by: Art Gib
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