Renting or Buying an Office

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August 20, 2014

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Depending upon your business, you may decide to rent or buy a business location to provide your products and services or to store your inventory and equipment. If you’re a startup, buying a building may present too big of a risk. Establishing a physical location involves both one-time outlays, such as security deposits or closing costs, and recurring expenses, such as rent, mortgage payments, and utilities. Initially, your business location may also need to be repaired or renovated to meet your requirements and you may have to bear some or all of those charges. By renting, you’re free to back out at the end of your lease’s term. However, if your business already enjoys a steady income stream, purchasing a space may be a good investment.

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