Is Your Business Profitable Enough To Buy Your Own Space? Take These Steps For Success
If you feel your business is established enough that you can stop renting space from others and that you can buy your own commercial building, you want to make sure that you are smart about it. You don't want the building to be a financial strain on your business and personal wallet, and instead, you want it to be a great investment for the future. Here are some steps to take to get the business space you want and need.
Talk with a Lender for Commercial Property Loans
Gather your financial information and your business finances and take everything to a lender that specializes in commercial property loans. They will look at some different things to determine if you can pay the loan back or not.
Things like your business's debt to profit ratio, ability to have the business pay the mortgage, your credit, and more will be factors. Once you find out how much money you will have for the loan, you can start looking for a location.
Find a Location Specialist
Work with a business location specialist that examines all economic and geographical factors that are relevant to your business and where you put it. Things like disposable income, average income of the area, places increasing in size, and more will be just a few of the factors the experts study. From there they can tell you what zip code you want to build in and what specific locations are best.
Consider Building and Making an Investment
You want to consider possibly building if you can't find the property that you want in your budget and if you think building will be the best investment. Consider getting a building that has separated office spaces and can host more than one business. This way you can buy it and rent out the other space for more profit.
Take the time to go through a lot of different properties that the location specialists find for you when you start your search, and if you can't find anything talk with the specialist about where the perfect place to build would be. If building is something that you want to do, you will have to talk with your commercial lender to see if they would be willing to give you a building and construction loan, which is different than a traditional commercial mortgage. Don't waste any more time paying someone else rent and find your property.
For more information, contact a business location consulting service.