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The Pros and Cons of Owning Your Business Premises

If you are someone that has a passion for business and a head full of excellent ideas, then you have likely dreamed of opening your very own business at one point or another.

If you are someone that has surpassed the dreaming stage and you are in the process of actually starting your own business, then it is likely that you have faced a lot of decisions. Once you look into opening your own business, a lot of things become clear, things that you have likely never thought about before. Owning a business is much more than just having an excellent idea and selling your products to the general public.

There is a lot that you have to think about in order to ensure that your business is a success. For example, you need to consider the location of your business, the price range of your products, and a whole list of other things. However, something that you have likely not considered is whether or not you should buy the premises that you operate from, as this can make a big difference to the way in which your business operates.

Owning your business premises isn’t something that is really spoken about when you are in the process of opening your business. However, if you have stumbled across this article, then it is likely that it has been on your mind.

Here is a look at some of the pros and cons of owning your own business premises.

  • Mortgage Payment Cost

Unless you have a lot of money stashed away, it is unlikely that you will be buying your business premises outright. Buying outright can cost hundreds of thousands and simply is not economically viable.

If you are not going to purchase your premises outright, then it is likely that you are going to have to take out a mortgage. People tend to think that taking out a mortgage is a very pricey venture, but it really isn’t. Having a mortgage is a commitment and depending on how expensive the building is, you can be repaying it back for years.

However, if you look at the monthly cost of a mortgage, you will find that it is actually much lower than the cost of renting a building. When landlords rent out to business owners, they are more than happy to raise the cost of rent, especially if they have a building in a good location. This means that when you rent as a business owner, you can expect to pay very high rent bills and there is nothing stopping the landlord from occasionally increasing the cost of your rent.

When you pay a mortgage, it is usually only a few hundred pounds a month, at a fixed rate. You don’t have to worry about the cost of your rent randomly increasing, which means that you will always know how much money you will have to put aside to pay for your mortgage.

However, the consequences of missing your mortgage payment are usually much worse than missing a rent payment. If you miss a rent payment, a landlord will likely give you the chance to pay it back and will give you several warnings before you have to vacate the property. The bank is much less forgiving of people who skip mortgage payments. Skipping a payment can have a detrimental impact on your credit score and if you leave your payments for too long, then the bank can take your building.

  • You Are Stuck With the Building

When you buy a building, you make a long-term commitment. When you rent a building, you usually rent it for a set period of time, after which you are able to end the contract and move on to something new.

When you buy a building, you have to stay there until you choose to sell it. People often buy the building that they wish to operate from before they have even started to operate their business. This usually happens with new business owners, which means that when they buy a property, they are taking a chance on whether or not it will be the right building for their business.

You do not know if the building will be too big for what you need or even too small, and if this is the case, you are stuck with it until you can sell the building and go through the process of buying a new one.

However, selling a house is easier than ever, which means that this may not be much of a problem. If you buy a building and you decide that it is not right for your business, you can always sell it to this we buy houses cash company, which will then allow you to be free to buy a brand new building if need be.

  • Decoration

When you are renting a building, there are usually limitations on the customization that you can do. This can be frustrating if you run a business that requires a lot of innovation, such as a physical activity business. Buying a business gives you complete control of what you can do to your building.

If you want to knock down a wall, you do not have to worry about compromising your contract. If you want to paint the building a different color, you can do it without asking for permission from others. You have complete control.