FAQ: Business

Should I rent or buy space for my business?

Should I rent or buy space for my business?

Almost all small businesses start out in leased (rented) premises, and most use leased space throughout the life of the business. By leasing rather than buying, you avoid tying up valuable working capital, and it's easier to move to new quarters if your space needs change.

How do I pick a location for my business?

Commercial real estate brokers are fond of saying that the three most important factors in establishing a business are location, location and location. While true for some businesses, for others, locating in a popular, high-cost area may be a mistake. To make sure your space will suit the financial and physical needs of your business, ask yourself these questions:

• Is location important for the success of your business?
• What type of location is best for your business?
• How much rent can you afford?
• Is your proposed location appropriate for what you plan to do there?

What is a commercial lease?

A commercial lease -- as opposed to a residential lease -- is a contract between a business and a landlord for the rental of building space. A lease can be for a short term (as little as one month) or long term (up to ten or 15 years), and it can be written or oral (spoken) -- although an oral lease for more than a year will generally not be enforced by a judge after the first year.

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