Any individual looking to start a business will inevitably have to make a decision about whether to purchase or rent office space. This decision is certainly not one to be taken lightly, because it deals directly with the finances of a business. More often than not, young businesses do not have the financial resources to purchase office spaces, especially in light of the constantly rising property prices. A business which is just starting off is better placed to allocate majority of its financial resources towards increasing brand awareness, and developing a sustainable client network.
Another advantage that renting office space has over buying, is the fact that it provides far more flexibility. When a company initially starts out, it may not be perfectly aware of the demand for the products or services it offers. In many cases, this demand can be affected by factors that a business may not be able to control. However, if a business does manage to successfully convert an opportunity, allowing it to grow and expand, it will be able to do so far more seamlessly if it has rented office space.
If the company actually owns the property on which it operates, it will need to spend resources and time to find a buyer or a tenant for the property. These kind of delays may lead to numerous setbacks and missed opportunities for businesses. Many businesses offer serviced offices with the most flexible lease lengths imaginable nowadays. This makes it increasingly easy for businesses to shift operations from one space to another.