Should You Rent or buy your office which encompass your Training or Seminar room?

If you are a small company in the training business, e.g. internet marketing, speaking, motivational programs, you will likely one day faced with the opportunity or decision whether to purchase your own training or seminar room as opposed to rent a seminar room or training .

There’s no hard and fast rule but this article provide some factors which you might want to consider. Also, one more thing to add before we proceed is this article focuses on business owners who have already settle in and already have a positive cash flow.

Consideration of the Costs of Buying Your Office – Opportunity Costs
Buying an office will need a big amount of upfront capital. Are there any expansion plans upcoming which require a huge amount of capital? Because an office or training room purchase requires a huge outlay of capital. Bottom line, consider the opportunity costs of tying up your funds in the purchase.

Do You Plan to Grow or Shrink Your company?
Companies with employee numbers which fluctuate or who plan to increase headcount may find renting the better option as the size of working force is yet to be fixed. Making a decision to purchase an office or training room may be not appropriate until your headcount required for your business is more or less determined for the next 3-5 years.

Have you found a suitable location?
Consider the dynamics of your current office location as compared to the location which you wish to purchase. It is not surprising that some employees might not be willing to move over together to the new office in view of the inconvenience. Hence, you might also seek the opinions of your staff to have a feel

Do You Plan to Move?
Is your business currently located to your current clients which gives you an edge in doing business? If so, you might want to re consider. Also, if you want flexibility you should rent.

How do You Define Peace of Mind?
You should also think about whether to purchase or rent your office to hold your training program depending on how you define peace of mind.

For some, peace of mind equals knowing that you will be in the same office paying a fixed mortgage and you are not held ransom to rent increases by landlords. Possibly, there may also be capital appreciation. However, for others, peace of mind may mean that they do not have to spend time troubling themselves with maintenance issues and can rely on someone to fix any issues that arise along way of the lease. In addition, there is also flexibility to shift offices whenever he wants.