3 Great Tips For Buying A Business Building
Purchasing a building for your business is essential for your long-term growth, but how do you go about finding the best one for your needs?
You’ll find the perfect building for your needs if you remember the tips below.
Why Should You Buy?
Buying a building can be a great move. Consider these perks:
- Fixed interest rates: you know how much your monthly costs will be every month and they won’t rise with the market.
- Tax incentives: the costs of running your building can allow you to write off expenses on your taxes.
- Control: if you own your building, you’re the landlord, and you can even take on tenants if you want.
Now for the tips to find the best building for your business and situation.
Think About What Your Business Does
Finding the best building means you must understand your business. What kind of business is it? Answering this question tells you about the kind of building you should buy or build.
Think about what your business sells, who it sells it to, and in what geographic area. Think about the color, siding, roof, and style. Also, figure out the answers to these questions:
- Will your customers walk into your building, or do you go to them?
- Does your company need as much exposure as possible?
- How much do you want your business to grow in the next year?
- How many people work for you?
Companies that sell mostly location-dependent products and services online may not need their building in a high-traffic (more expensive) area. Perhaps you only need a small building in a local business park.
If you want a building to advertise your services, you should think about branding. Does the type of building match what your brand is?
For instance, if you’re brewing craft beers, an old warehouse could work. Or, if you sell tractor equipment, a green-colored metal building could be just what you need.
Do Your Research
As you are thinking about buildings, you should visit a lot of them in your market. Think about what is good about each property and what isn’t. Also, go over the most important factors of each building, including their price, zoned uses, location, and physical condition.
For businesses that are location-dependent, you’ll always pay a higher price for downtown buildings or any near hospitals or universities.
You must find a building that fits your business goals and needs. And you should focus on what the building will cost, including taxes, interest, and insurance. Then, subtract that amount from your annual income to ensure you’ll be in the black and not drowning in debt.
Some additional questions to answer as you look at buildings:
- What can the property be used for?
- What is the income the property produces for the owner today?
- Does anything need to be replaced or renovated on the building?
- Why is the owner selling the building?
Build A Team Of Experts
Before you buy a building, you should have a top-notch team of advisors that include:
- A commercial broker: helps you locate appropriate structures.
- A mortgage professional: can find you the right place at a low rate.
- A CPA: an accounting professional who tells you what your company can afford.
- Real estate or business attorney: the process will be smoother if an attorney handles the paperwork.
Owning your building can be the right financial move for many reasons. Just do your homework to ensure that the building and property fit your needs and are within the budget.