One of the key factors any start-up needs to pay attention is to rent office space. Different people have different opinions about it. Some believe it is sensible to rent office space and then there are those that believe the right thing to do is buy their own property. Frankly speaking, there is no right answer to this.
It is always good to have their own property, no doubt, but at the nascent stage of the business, it makes more economic sense in leasing out office premises. The general assumption is that renting an office is like maintaining a white elephant.Although owning office space may be considered a worthwhile investment, there are several reasons why renting office space as a start-up may be preferable for a new business
We are going to talk about the advantages of renting out office space as against buying your own property.
Cost Effectiveness
When setting up a new business you are most strapped for cash and it is never advisable to block whatever you have in a property. The smart decision would be renting out space, which would be more affordable and also doesn’t block the bulk of your money all at once. The money you save as a result can either be utilized for some other significant expense or invested to earn periodic interest.
Location
Real estate prices are expensive across the world. A key factor you need to pay attention to is the fact that prime location offices charge premium prices which may not a viable option when you are just starting out. In addition to that, there is intense competition amongst businesses which means the moment you buy your own property you are priced out of other relevant locations. You instantly lose the flexibility of mobility.
Geographical location is of utmost importance for any new business to get the desired traction at the initial stages. This can be achieved only by understanding the culture of your business, employees and the community around you.
If you want to start a new business in Bangalore, then there are steps to follow. Further, if it is absolutely essential for you to have a dedicated office space, then there are sites where you can search for top quality office rental spaces in Bangalore that are perfect for any business, whether it’s a startup or an established organization. Companies likes Magic Bricks, BangaloreOffice, 99Acres, OfficesHub, No Broker etc. provide you with the best deals that are flexible, transparent and customizable to suit your requirements. Their teams ensure that your transition into the new office ishassle-free and enables you to devote your time into other important aspects of your business.
Clutter and Hassle-free relocation
When you buy your own property you basically start everything from scratch, which is an additional unwanted expense for you. This can be a hindrance to yours and your business’s growth. Everything from furniture, safety equipment, office automation, internet connection, telephone line needs to be procured new. All of the above while being time-consuming are also expenses you can actually avoid.
Rented properties, on the other hand, are ready made, ready to occupy, “out of the box” ready. They are already furnished, have all the requisite amenities to run your business including free coffee depending on the deal you strike with the property owner.
Flexibility
All office spaces and sizes are need-based. Depending on the success or failure of the business the team size may vary. Renting office space gives you the flexibility to add more space without having to block more money. Ifyour business is not as successful as you expected to be, you are left with no other option but to retrench. Owning an office can actually be an obstacle here because you eventually are burdened with unproductive space.
Also, rental agreements are flexible and can be renewed periodically or terminated giving an adequate notice period to the landlord.
Operational Expense
Purchasing office property, even though is a fixed expense there are possibilities of numerous other overhead expenses. Rental office spaces, on the other hand, are ready to move in with minimum overhead costs. When you start a business, it isn’t practically possible to invest a big amount as a down payment towards the purchase of the property. Cash flow at the start will be very crucial for the progress of your business. Every penny saved is a means to retain more working capital.
One the most important benefits of renting office space is that it essentially relieves you, of all financial responsibilities with regards to the day to day maintenance of the building. Day to day maintenance includes things like repainting walls, repairing broken-down equipment, housekeeping, etc. The landlord is responsible for ensuring that all office equipment they supply is functional and also make sure the office area is neat and clean.
Having their own office is essential. Startups, freelancers, SMEs can reap advantages by renting an office and having a proper business postal address of their own without worrying about loans and down payments. An office adds value to your business image and sends out a strong professional message among clients and peers.