Unless your business is completely in eCommerce, one of your first concerns during the startup phase is getting information about commercial real estate in Stoufville, Ontario. Budgeting for fixed expenses like rent, telecommunications and utilities should have been part of your initial business plan, but knowing how much commercial space you can afford is only one consideration when looking for a suitable location. Read on to learn more.
Buy or Lease
As with business equipment, the question of buying or leasing a commercial space depends on several factors. If your monthly cash flow is small in the beginning, it may be a better option to lease a space. However, if you have the ability to buy without leaving your company strapped for cash, there are tax and other advantages to doing so. By buying, you’ll also have an extra asset to borrow against in the future as well as increasing your company’s net value.
Another thing to think about if you’re looking into leasing a space is the terms of the lease. Unlike home rentals, many commercial spaces require multi-year leases, which could be an issue if you decide to relocate or you go out of business before the term is up. There may be other conditions put on a renter, such as stipulations against modifying the property for your use. Whether you rent or purchase, make sure the property is properly zoned for your type of business before entering into an agreement of any kind.
Location, Location, Location
There’s an old saying in real estate that a property is only as good as its location. You want a space that’s conducive to your businesswithout having to make a lot of improvements or upgrades before you can move in. Employee commute could become a problem if yourcompany is located too far from public transportation or residential areas. The type of company you have can also be a major factor in where you situate your business.
If you’re opening a restaurant or retail business, you’ll want to find a space with plenty of parking availability, access to foot traffic and other businesses in the vicinity that will complement yours without providing a lot of competition for customers. For example, if you sell high-end jewellery, locating your shop near upscale clothing retailers could translate into additional sales opportunities, where setting up shop near a factory outlet might hurt your business.
A manufacturing business will want a space that is zoned and compatible with the type of production going on and has access to public services like water and electrical connectivity that is adequate for their requirements.
If you’re opening a professional office – like an accounting firm, design company or a law practice – you’ll need better telecommunications availability and enough space to create individual offices and a pleasant reception area. Again, parking and access to public transportation are important for these types of businesses as well.
Sometimes in life, there’s want you want and what you need. Before you begin to look for space, make a list of must-haves for yourbusiness that is separate from your wish-list. If you can find a spot that has it all, great. You should also consider how much work will need to be done to the interior to make it viable. It’s tough – and expensive – to open a food service business if the location isn’t properly equipped or at least has the necessary infrastructure to accommodate a kitchen.
You should also know in advance about any incentives to choosing one location over another, like tax credits that are meant to draw businesses to a certain area. If security is a concern, try what many prospective home buyers do and drive past the location at different times of day as well as on various days of the week.
Your business’ physical location in Ontario may affect you in many ways. Don’t just fall in love with a space if it will be difficult for yourcustomers or vendors to reach or has other logistical problems. A local Realtor can help you by getting to know more about the nature of your business and your future plans for expansion among other considerations.