Temporary Buildings: Buy or Rent?

Space is a significant factor to consider during the production stage. Therefore, before setting up your business, it is essential to find a facility that will help your business generate profit and expand. Depending on your budget and other factors, you can either choose a temporary structure or a permanent one. However, compared to permanent constructions, temporary structures are cheaper to acquire and are therefore more suitable for new entrepreneurs who start businesses with little capital.

After settling on the temporary building that suits your business best, a difficult decision underlies on whether to rent or purchase the structure. Either choice will positively or negatively impact your business. This means that you should research before deciding on whether to hire or buy the temporary structure. Furthermore, other factors such as the long-term objectives of the business will play an essential role in making the best decision for your organization.

Here is a list of factors to consider before renting or purchasing a temporary building:

Cash flow

Renting or buying a temporary structure will affect the cash flow of your business. Leasing a structure will save you some upfront costs. Unlike purchasing where a down payment will be required, leasing a temporary building will only need an application fee and a certain amount as a deposit.

Moreover, when leasing a building, you will be avoiding building maintenance expenses, which will be catered for by the leaser. These savings can be reintroduced into the business to help your organization grow and generate more profit.

On the other hand, purchasing a structure from Smart Space UK means that you will have achieved one of the long-term objectives of your company. Furthermore, it acts as a security and can be used to secure bank loans. Buying your temporary structure eliminates any monthly payments in the form of rent, which is costly in the long run.

Generating Value

The revenue generated by your business will depend on how fast you can set it up and get the company running. Since renting is less complicated, it allows you to get the business running within the shortest time possible, and the extra cash acquired can be invested back into the industry.

To save yourself from massive losses in case the business fails, you should rent a space. After that, as the business grows, you can have a plan on how to purchase a temporary structure.

Location

The choice of location for your business can either make or break it. It goes without saying that area is an essential factor to consider when renting or purchasing a temporary structure. Most people prefer leasing since it offers an opportunity to get your business running within a short time.

Leasing also enables you to study the market before investing more in the business.

Here are some facts about hiring a temporary structure:

•   Maintenance costs for the structure are catered for by the owner of the building.
•   The length of the lease is flexible.
•   It gets expensive in the long run.

And here are some facts about purchasing a temporary structure:

•   It is a long-term achievement for your business.
•   Can be used to secure bank loans to grow your organization.