If you are planning on quitting your present job and starting your own venture, then you probably are going to face numerous decisions that you never bothered about when working in an office. Should you set up your office in your home or should you lease office space separately?
Should you begin small and work with a team of trusted friends or should you hire professionals for the various positions from the word go? Along with such decisions, you will have to analyze the pros and cons of purchasing office equipment and other assets required for fitting out the office or leasing the same.
Running an office with rented tables, chairs, computers, and other equipment may seem like a very odd position. However, you cannot afford to take business decisions on the basis of sentimental emotions.
The most important factor that you must consider is the overall cost impact of purchasing equipment and leasing the same. Buying equipment, accessories, furniture, and other assets required for fitting out the office will require a significant infusion of capital even before you start the business. What is worse is that this precious capital will end up in assets that don’t really add value to your operational performance.
Your ability to convince a potential customer to hire your firm will depend on your marketing skills and not on whether the table on which the discussion is taking place is owned or leased. This is the most significant advantage of renting all assets required for fitting out the office. You save a lot on initial capital outflow. Your monthly outflow is relatively low, and you don’t really compromise on your operational efficiency.
However, this does not mean that you should blindly choose to lease the assets. Carry out a detailed analysis comparing the pros and cons of fit out finance costs for offices in your area, using your own capital, along with the cost of leasing equipment. You can opt for a mix-and-match approach and buy some essential assets and lease the remaining requirements.
Your business is a unique venture with its own special requirements. You cannot afford to blindly copy a strategy followed by another firm. Neither can you finalize your choice on the basis of your personal preferences. Spending money just because you have it doesn’t make any sense.
So, get in touch with financial experts who can help you determine the best option for your business. The ideal solution would be one that allows your business to run efficiently without coming across as a poorly-funded venture run by a cheapskate.