Most small businesses share humble beginnings. If your venture got its start in your garage or basement, don’t worry, you are in good company. However, most entrepreneurs are looking toward expansion at some point. How do you know when it’s time to branch out and purchase a formal place? When do you go about investing in a property to set up your business to take you into the future? Most successful businesses rely on their professional settings to help establish their brand and the legitimacy of their company. There are many things to consider before you decide to purchase a property to house your growing business.

Buying a commercial property is a huge investment that can have a powerful impact on the future of your business. You may already be set up with a working system with all the bells and whistles in place. If you have a small staff and even a paystub maker to produce a professional payroll, you’re already doing good. However, taking a step towards purchasing a business property is a bold move that most people will need to make before they reach greatness. Let’s take a look at a few of the things that you need to consider before investing in a commercial property for your small business.

Planned Growth

Before investing in real estate for your business, you need to have a clear plan for the future. Where do you plan on being in two, three, or five years? How much space will you need to accommodate those plans? Will you need an additional warehouse and office space sooner than you may think? It’s important to look at both your short and long term plans for expansion. If you plan on growing rapidly you may find that your investment won’t pay off if you need to expand further too quickly.

Available Funds

The simple truth is that if you don’t have the funds to afford a down payment on a commercial property, then it’s not a good idea to invest. You don’t want to end up with a cash flow issue or have to borrow against your investment. You will need to take all of the costs associated with making a move. This includes your taxes, closing costs, and the expense of physically moving into a new building.

Location

When looking for commercial real estate, you need to consider the location very carefully. Choose an area experiencing current or projected growth, not an area showing signs of failure. Take into account how your new property will work for your customers. Make sure that there is enough parking and that your location is convenient to reach.

Maintenance

Commercial property comes with the same kinds of maintenance responsibilities as a residential home. Have all of your inspections done before you commit to the sale so that you can anticipate any expensive issues like new roofing or having to update your electrical and plumbing systems.

Endnote

Buying a property to house your business is a huge decision and an expensive investment that requires careful consideration. Weigh the risks and the benefits to help you decide. A new property can help you gain a valuable asset, launch a more professional venture, and help you expand if it’s the right time to buy.