Building Your Own Business

Thinking of starting your own business? If so, and you have done any further looking into the details, you may be shocked at how all the little things can add up quickly. Business start-ups can be especially pricey when the owner is building from the ground up, rather than acquiring an existing business.

There can be pros and cons to building a business from scratch as well as to purchasing an existing building.

The pros for building from scratch are that the owner or partners can strategize and customize each detail from the buildings appearance to the location to the niche they will fall into. Building from scratch and starting fresh also means that an owner will not have to battle against any negative publicity or bad reputation an existing business may have had.

Some of the cons of building from scratch are the initial costs. The devil is in the details and things like building and construction licensing, permits, purchasing inventory, advertisements, liquor licensing (if the business is a restaurant or bar) and considerably more than these things will break the bank if an owner does not keep a close eye on cost. It is easy to make small upgrades or changes here and there, but the total bill should be kept within a pre-set budget. Other cons of the building from scratch may be that no name has been made for this business. An owner has to start spreading the word about the business and will most likely have direct competition from businesses who have been there for years and built a loyal customer base.

One of the decisions that many new business owners and well-seasoned business owners alike agree on is commercial property management.

Some business owners use commercial property management services as your realtor and ask them to locate an ideal space to rent. This is a great idea because most real estate agents are in touch with properties for sale, and may not have the right connections for commercial rental property. Commercial property management businesses can easily provide a new business owner with a list of available space for leasing.

Leasing a space for your business is a smart way to offset the costs of building from scratch and a safe way to protect yourself from ending up with a possible money pit. Leased space should include an agreement between the commercial property management company and the tenant to guarantee the tenant with basic things such as available power, gas, water and maintenance of the building. These things can save a business owner money, should something need repair.

On the other hand, the pros for purchasing an existing business are that the time from acquisition to opening the doors to the public is usually less than a few weeks. This means almost zero time spent in construction. Purchasing the right business can be a great turn key experience for a new business owner. Other cons may be that the business you are purchasing is in financial trouble.

The cons for purchasing an existing business are that you may have to sacrifice a little location. The business is probably already established in a building and moving the location can be as costly as building from scratch. 

Commercial property management agencies still come in handy for business owners that want to purchase an existing business. They may have listings of businesses for sale or know of them before they go on the market.

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Disclamer: This entry is intended to promote our partner StorageMart and some or all participants received compensation.

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