When it comes to business activities it is very important, that all activities are done in the interest of the business blooming. It is absolutely necessary that you make business decisions that will only take a positive effect on your business. So, if you are contemplating the idea of whether or not you should acquire your own land to be used as your business premises, we suggest you buy it rather than rent! And for that we have listed down some very real reasons why you should! Make sure to read till the end.
Provided that you have a good cash flow and are able to buy the premises either by full payment or lease we advise you to go ahead. And here are some reasons to support our belief.
The most obvious reason as to why you should buy your own premise as long as you can afford it, is the fact that it is an asset to your company. It is very important that the business has fixed assets in its possession. The liabilities in a business is bound to increase with time. Which is why it should be matched with the assets.
Cost Reduction In Long Run
In the long run, when you acquire your own premises you will be able to reduce the costs inevitably. As when you are paying rent for the premise at the end of the rental period, all the money that you have paid is gone. You have no hold of it. But if you have the capability to pay mortgage or buy the premise completely, then it would become an investment for your money. In fact it will be a double investment, where you can carry out business activity that will bring in profitable returns to you and also be a means of holding your money. Make sure to get a sworn valuation done before purchasing any premises.
Permanent Business Image
Renting out a business premises means that one day you have to leave the premise when your landlord tells you to do so. However, any business expert knows that it is always best to be located in the same place unless you plan on expanding. It is very uplifting to a business brand image when they are known by sight or knowledge of their location to their target audience. People will be able rely on them being located in the same location. And if you want to rent out a premise for a long time period the landlords almost always tend to increase the rent as they know, that they have the upper hand in the issue. So, get a property valuation Melbourne done and get your own business premise!
Finally, by acquiring a business premise for your business, you will be able to increase the security of the business. Banks will be more willing to provide you with facilities like loans and over drafts. You will also be able to obtain invaluable financial services by using the premise as a collateral security!