The boss of all – Buying the property you run your business from makes you both your own boss and your own landlord
In today’s world, it literally pays to run your business. Rather than working for someone else, more and more people are opting to take a chance and become their own boss, running their own empire. Running a business is always a time-consuming, financial operation. To bring money in, you must spend money. It sounds like an unfortunate oddity but the reality is that once an individual invests enough money, passion, and time into an idea, it is more than likely that the business will sprout and consequently blossom (assuming one keeps the drive that got the business off the ground in the first place). One of the most important aspects of running a business is the very building that said business is run from.
The details and details of buying or renting a slice of real estate to run a business from are intricate, if nothing else. There are all the standard ins and outs that one must know to lease or buy any property, and then there are the additional quirks that one must be familiar with when the property is being used as the core of a business, such as vehicle novated leasing to ensure the business runs more efficiently. The simple truth is that every business owner will have reasons for choosing to operate their business real estate either way – it all comes down to the pros and cons.
Buying the property that one wants to run their business from has obvious advantages. The most obvious advantage is that the owner can be both their own boss and their own landlord, giving them full control of every aspect of the business model and its many methods. The mortgage (assuming one does not opt to, or cannot afford to, pay outright) will eventually be paid off, leaving more room for financial independence and wealth in the future. Without a lease to comply to, business owners can be entirely free in the case of wanting to change what their business model is – something that is a definitive advantage in a world where new ideas are encouraged and often spring into fruition at an exceedingly alarming rate.
When one opts to lease the building they will run their business from, they have more opportunity to choose the location. The obvious advantage of this is that business owners can choose a building in an area that will best serve their business’ longevity. The con is that leases are rarely fixed and are instead based entirely on the inflation rates of the area, efficiently affecting the decision – willing or not – to renew the payment to keep the business. If one opts out of renewing, they have two options: closing the business or moving it to a new location. Moving locations is not always a negative thing, but it can impact the way that the business runs and the consumer base (both things that a business must be very careful to keep).