Your business is growing and you want to keep up. But how do you know what to do?
Should you buy a warehouse, invest in new office space, or hire more employees?
The answer depends on many factors: What type of business are you running? How much money can be invested right now? Is your current location too small for the company’s needs or too remote from potential customers? When it comes down to choosing between buying property or renting space, there are pros and cons for both options-and mistakes that can be made when making this decision. The first step is to figure out which option will work best for your business.
Making a business expansion plan will help you stay on track and know what you need to do first, second, and so forth. This is especially helpful if your budget for this project is limited or if you want to keep the costs down as much as possible over time. Ask yourself important questions before starting. What are the company’s long-term goals? How much space is needed now and in the future?
When you rent an office or warehouse, it allows you to test out different locations with less capital investment. And if you find that your business needs change over time, then no problem--you can always leave your lease early or switch to another location later on.
When renting space, many companies do not realize how much it costs for off-site storage until they have their first bill. Check for this fee when signing a commercial rental agreement so no surprises come up during billing at the end of the month.
Owning your own building is a great investment for many companies. Whether you are looking to build equity in an appreciating asset or want complete freedom when making design decisions, then buying property might be right for you. However, if you plan on selling your company, then you might want to think twice about this option.
According to the National Association of Realtors, it can take up to five months on average for a commercial building to sell once it is listed on the market. If your company plans on closing its doors in less than half a year, owning property might not be ideal.
When your company is growing, it’s important to know what you should be doing first before moving on to the next set of tasks. If you are looking for a good place to start, inbound and outbound telemarketing can be an efficient way to reach new prospects. You will need to focus on international calling and global cloud communications. As soon as you launch this service, the phone will begin to ring.
If you have no clue where to start with buying or leasing property, then you might want to consider hiring a business broker instead. They will create a plan that works for your budget and give you an affordable list of options available in the area based on your requirements (like age of the building, size, available parking spaces, etc.).
When it comes down to buying property or renting space, make your choice based on how the business will look in five years. Remember, you don’t want to buy what might be too much space now if your company is only growing slowly. But no matter what the situation is, be sure that you’re investing in the right place before signing anything that cannot be undone. The last thing you want is to end up with a costly mistake that could have been avoided.
After investing one million dollars in your company, you might be eager to invest more when the opportunity arises. But don’t over-expand too fast because you do not want to regret it later on when trying to manage a larger staff.
If you feel like there aren’t enough people to handle the workload, then it might be time to hire more employees. But if you have no place to put them in your current location, then you should consider buying or leasing long-term space for these new hires instead of signing another short-term lease agreement.
The best way to decide on how to expand your business is by considering what you want the space for, the costs of each type of expansion, and whether or not it will be beneficial in the long term. This article has given some great pointers that may help you make a decision about this process. We hope these insights were helpful as you contemplate the next steps for your company's growth.