Expansion and scaling are two things every business owner aims for. Every entrepreneur wants to be able to expand their businesses and increase their operations. However, one thing that comes with business expansion is finding a warehouse to accommodate the growth.
If you are a business owner in Avon, Indiana, looking to get a warehouse for your business, there are two ways to go about this. Either you buy or build a warehouse, or you simply rent one. Now, finding a small warehouse space for rent in Avon, IN, is relatively easier than buying or building one. However, the choice you make solely depends on your needs, the financial capacity of your business, and so on.
There are certain situations where it’ll make more sense to build or buy a warehouse than to rent one, and vice versa. This is why we have written this article: to help you make an informed decision. We will start by discussing the pros of renting a warehouse, and then we’ll look at which choice is the best one for you.
Benefits Of Renting a Warehouse
Renting a storage space comes with several advantages as opposed to buying one. Below, we will discuss some of these advantages. We believe knowing them will make it easier for you to make the best decision.
Saves Time
Building or buying a storage facility will not just cost you more money, but it will also cost you time. With renting, all you need to do is search for a space that will fit your needs, make a payment, sign the lease, and move in. But it’s a whole different ballgame when it comes to building.
First off, you’ll need to look for a strategic piece of land and then get the needed construction licenses and planning permissions. You’ll also need to get the architectural drawings, find contractors, monitor the building process, and so on. Before you eventually finish building the property and move in, you must have spent a lot of time on the process. All of these can delay your opening or put a hold on your business processes, and as we know, time is money.
Reduces Cost
As a new or small business owner, proper thought has to be put into your capital allocation. You can visit https://online.hbs.edu/ to read about the importance of capital allocation. Renting a warehouse will help you allocate your capital to other pressing needs; this is because the cost of renting a storage facility is significantly less than buying or building one. You can then use the money saved on more important expenses like inventory, equipment, and machinery.
Variety of Choice
If you decide to rent your storage space, you get to choose from several existing facilities. You can easily find a space in the exact location with the same features you need. Some businesses opt to build their own warehouses because they believe it is the best way to tailor it to fit their specific need. But the truth is, even if you do not find a space that exactly matches your idea when renting, you can easily tweak it to meet your needs.
Flexibility
When you buy or build a warehouse, it’s yours to keep. If your business grows or decides to move locations, you’ll be saddled with the responsibility of selling the warehouse first. But when you are renting the property, you do not need to be bothered by this. Once you have to move from space, all you have to do is terminate your lease, and you are good to go.
Tax Deductions
As long as you run a business, you are always going to pay taxes. However, some expenses you make while running your business are tax-deductible; rent is one such expense. If you’d like to know more about tax deductions, you can read this article to do so. You see, renting will not just help you save money on overhead costs, but it will also help you save money on your taxes.
Buy/Build vs Rent Which Should You Do
The choice of whether to build or rent a warehouse rests solely on you and the financial capacity of your business. If you run a big company that can afford to buy or build the space, you may think it is the best choice. However, from what we have seen so far, renting is a very good option that can help you save costs and time.
It also provides a level of flexibility that owning a storage space does not offer. If you are a mid- or small-sized business, then the logical choice would be to rent rather than build or buy a storage space. You can instead use the extra cash to expand your business.
Conclusion
Buying or building a warehouse comes with several responsibilities that you can easily avoid by renting instead. When you rent, you have the flexibility to move out of the facility whenever you want, unlike when you own the facility, and you’ll have to sell it off before you can move. Apart from flexibility, renting can also help you save costs and offer several other advantages, as we have seen in this article.