It is said that in order to successfully pursue something, we must have a clear idea of the goal first. This is precisely why goal setting remains an all-important part of business, and selecting a commercial property is not any different either. In order to be able to find the most ideal property for your intended commercial use, it is important to define what the requirements are first. Although this creates a variability factor which cannot be covered in any single post, we are going to concentrate on the more universal aspects of selecting an ideal commercial location and/or property.
The Location’s Suitability in Respect to the Work
If you are planning to build a manufacturing unit, a lot of space will naturally be necessary, and the location should preferably be at a minimum distance from inhabited localities. The place shouldn’t be too far removed from its delivery stations either, because that would increase shipping costs exponentially.
On the other hand, if you are looking to open up a new office for your law firm, it needs to be located in a prime business location – a location where you are expecting most of your potential clientele to come from. At the same time, someone who owns a chain of restaurants should be looking for a plot in the city’s most famous areas and scenic locations. These examples should serve to drive home the point that before narrowing down on the specific plot, you must first define the kind of plot/property that would be best suited for the type of work you intend to do there. The less conflicts there are between a location and the business, the better are its chances of succeeding.
Renting Vs. Buying: The Old Debate
The debate might be old, but its validity is the same as always. The main question is fairly simple; does the new business have more to gain by buying or renting? The answer is not as simple, and it’s extremely variable by all means. Nevertheless, we can still highlight a few key questions that a business owner must be able to answer.
- How long do you plan to do business there?
- Will the terms of a rented commercial property come in conflict with the needs of your business?
- Will the total cost of rent in 5 – 10 years be more or less than the buying price right now?
- If you buy, will you be paying more in EMIs per month for the loaned amount, or would it be cheaper to rent the same property?
Answers to these questions in the form of verified data, along with several others that could even be more specific to your sector, must be properly evaluated and reviewed by the appropriate departments. Once the options are properly analysed in respect to the company’s specific situation and segment, there should be a clear winner between the two options.
Don’t Overshoot the Budget for a New Property
Unless there are more than enough reasons to justify such a move from a financial perspective, overshooting a pre-set budget is never a good idea. Everything from the business loan, to various other aspects of the business plan is created based on a budget. Therefore, if you end up spending significantly more on the property acquisition itself, you will have to cut costs somewhere else. Not that it would always be a bad idea to do so mind you, but just as already stated, the financial justifications of such a move should be sound. Also, if the decision is indeed taken in favour of buying a more expensive property than intended in the business plan, replanning will be essential to reassess and redistribute the available resources and funding accordingly.
How to Find the Property You Just Defined
Consequent steps are planned and implemented, post setting goals for the coming financial year. In the same manner, the next step after defining the property that would be most suited for the new venture, is to think about how to find exactly what you need. Stelmain offers a one-stop solution to finding commercial properties of any type and size, across all major sectors in Glasgow. All you need to do is fix an appointment with them.
Whether you need space to start a new retail unit, or room to accommodate a new office space in Glasgow, the property acquirement and management service will find exactly what your business requires. In fact, real estate acquirement and management services are often excellent places to find guidance for defining business needs as well.
Planning is always essential before acquiring any piece of property for starting or expanding any business. In most sectors, their chosen property is likely the most expensive investment that they are going to make initially, therefore it only makes sense to take as much time as needed.