Buying a new business building can be a costly and time consuming process. But there are a few proven ways to reduce both the short term and long term costs. Use these seven ways to save on your new business building and make sure you’re heading in the right direction financially.
Work with a Real Estate Professional
The building you purchase and the subsequent location will have lasting consequences for your business. Choose your building according to both your present and projected future needs. A real estate professional will have better access to a wider range of properties and will also advocate for your needs and dislikes. As a result, a real estate agent can be the negotiator you need, and use their professional skills to get you a better deal.
Your new business building will require the employment of many different contractors. While a finished building may only require a few touch up projects, be sure to carefully select your contractor. Avoid accepting the first bid, or rushing through the process. Thoroughly check references for contractors through asking their previous clients for reviews. Choosing the right contractor will be financially beneficial in the long run because you will most likely have need of their services in the future.
Project Management Software
Buying and fixing up a building for your business will be a long term project with many complex tasks. Using project management software will allow you to stay within the budget, while making sure deadlines are met. Project management allows you to stay focused while reaching your business goals. Use a good organizational or software system to keep track of bills, project progress, and future tasks.
Understand the Math
It is important to understand the financial costs of buying a business building. There are also real property costs, such as real estate taxes and settlement costs. Your constructing assets will be part of your cost basis, which may include labor, materials, contractor payments, and inspection fees. Be sure to work with a certified accountant to maximize your savings. Learn more about the financial costs of buying a building from the IRS.
Permits and Licensure
Consider establishing a limited liability company (LLC) as the owner of the building. This will provide legal protection through limiting your personal liability and protecting your personal assets from potential lawsuits. Buying a building through an LLC also guarantees privacy, as LCC records are not public property records. Finally, be sure to obtain the correct local, county, and state licenses and permits for your business and industry.
The good news is, there are plenty of ways to save energy through making adjustments to lighting, office equipment, and the HVAC system. For example, use compact fluorescent lamps (CFLs) and replace any incandescent ‘exit’ signs with LED ‘exit’ signs. Be sure to install motion sensitive lights in areas that are occasionally occupied, such as break areas or conference rooms. Purchase EPA approved, Energy Star equipment, and plug load controllers that can shut down inactive electronic equipment. Laptops use over 80 percent less energy than desk computers, and you can keep your HVAC system in top shape through regular, preventative maintenance.
Using a professional landscaping service will save you time, which in turn will save you money. A BBB business reviewed lawn care service company will have commercial-grade equipment and tools which will save a lot of money in the long run, since lawn maintenance requires a variety of supplies and equipment, such as fertilizer, leaf blowers and lawn mowers. Landscapers will have the expertise and know how to properly care for plants and trees. And most services like Pro-Lawns aren’t just hired for the pleasant seasons, but also come in handy during winter for snow removal in St. Louis or wherever your business is located.
As a business getting into a new building, you can save a lot of money through using competent real estate agent and contracting professionals, utilizing project management software, understanding finances and licensure, and can cut costs through energy efficiency and by using a lawn care service. Use these tips to help you get started saving more on your next building.