3 Things To Consider When Choosing A Business Property

Starting a business is an exciting journey, but it comes with many critical decisions that require plenty of thought. Among them, selecting the right business property could be a  pivotal factor that can significantly impact your business' success.

Let’s explore the essential considerations that must be made for securing a business property that aligns with your goals and aspirations.

Location Matters – There’s No Doubt About That

Selecting the perfect location is crucial, as it can directly affect your brand's visibility, accessibility to customers, and ease of doing business. There’s plenty to consider when choosing the right location to set up your business.

Among the things that business owners can prioritise is a location that suits their target market while simultaneously offering easy access to clients, suppliers, and employees. Having nearby facilities can also influence employee retention as well as the overall convenience of day-to-day operations.

Additionally, assess whether the chosen property provides sufficient space to accommodate your business's current and future needs. This includes heavy machinery, logistic requirements, plumbing needs, parking, and so on.

Should You Lease Your Business Property Or Purchase It?

The decision to buy or lease a business property is a fundamental choice that requires careful evaluation.

When you decide to purchase a business premise, you will undoubtedly have full control over renovations, architectural build, and interior design choices. While buying a property offers long-term stability, potential appreciation, and significantly more control over your premise, it may be more difficult to move and sort out the necessary paperwork if a relocation occurs. On top of that, it may require a substantial upfront investment and ties up significant capital.

On the other hand, leasing provides more flexibility and allows businesses to conserve capital for other essential expenses. It also offers the freedom to relocate in the future without the complexities of selling the property. Nonetheless, leases might limit customisation options and could result in escalating costs over time.¹

If you’re unsure about a location, leasing is always an option. Renting allows businesses to test different locations and markets before committing to a specific area, helping them identify the most suitable environment for their operations.

Consider The Potential for Growth & Future Proofing

When securing your business location, having a forward-looking perspective can save your future costs.

Consider not only your current needs but also anticipate future requirements, especially if expansion may be down the line. Entrepreneurs must envision the growth potential of their business, whether it involves opening additional locations or expanding the existing space to accommodate potential increasing demands.

Being prepared for growth can save businesses from the burden of relocating frequently or being constrained by inadequate space or other limitations. Having flexibility in your property choice may be imperative as your business flourishes.

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Now that you know how critical it is to secure the right business property, consider the factors that may influence your journey towards having a premise that supports your current state and future vision. By carefully considering factors like location, buying or leasing options, and potential for growth, you can make informed decisions that align with your long-term goals.

Ready to take the next step into business property ownership? UOB BizProperty can provide substantial assistance in purchasing a new property or refinancing existing ones.

If you choose to refinance your loan, you can cash out up to 95% of your business property value, or get up to 95% of your property value or purchase price for your mortgage for new property purchases.*

On top of that, your business can enjoy a loan tenure that can be stretched up to 30 years, and no processing fees will be charged to SME customers.*

Click here to learn more about UOB BizProperty and take the next step towards securing your dream business property.

*Terms and conditions apply.