Starting your own business? Great! Initially launching a business can be an intimidating process with a number of factors to consider. But the very first thing that strikes your mind is the office space and the furniture to accommodate your employees.
There are definite benefits to buying new office assets outright. But purchasing every office essential can be costly over the long haul. You will not want to fall into the financial-hole right from the start.
How about spreading the cost over several years? Renting office equipment and furnishing is the right solution for those who don’t want to tie up the capital and resources needed for purchase.
With renting and buying office space and equipment having own share of benefits, it becomes difficult to decide whether to buy or rent the office stuff.
Some office assets are truly beneficial when picked up on rent while for some buying makes a rewarding option in the long run. So, instead of thinking which one to choose, the right question should be what to buy and what to rent.
This is why we’ve listed the things that you should be renting and the things that are worth buying while starting up a business.
Here’s the List of Things that are better when they are on Rent
Technology has revolutionized many industries, with office work being no exception. Computers, laptops and other related tech equipment are inevitable fact of modern office life. But buying these office gadgets may not be a wise option when you have a tight budget. However rental deal can bring the following benefits for start-ups and growing businesses.
Reduced upfront expense
The first obvious advantage of computer rental is the reduced upfront expense. Especially if your needs for the equipment are intermittent, the option becomes more compelling. Renting allows you to pay at regular intervals eliminating the need to consider breakdowns.
As a startup business, you must keep your coffers as full as possible to maintain your cash flow. As rental deal rarely requires a down payment, you can procure new equipment without tapping much-needed funds.
Another financial consideration while buying a computer or other tech equipment is the cost of depreciation. Every gadget, be it a laptop or desktop PC, loses its value with the passage of time.
Renting the latest technology will allow you to save yourself from the cost of depreciation. Not only that, you can even chop and change your equipment if a particular product is more apt to your needs.
Eliminate the need for technical support
When you buy tech equipment, you have to go through additional costs for software updates, computer repair, and ongoing technical support. However, some rental services include free setup and installation of the software along with technical support. So, you will hit the ground running and pay only the cost of the rental.
When your company is just getting started, committing to buy a ton of office furniture doesn’t sound a wise option. Instead of spending on purchasing furniture, you should rather utilize it as working capital for growing your business. Here are some benefits of renting office furniture.
Preserves the existing line of credit for other uses
The needs of a startup business can change any time hence saving money on furniture is always a wise option. With a wide selection of computer tables & workstations on rent, you can save your existing line of credit for the growth of your company.
Convenience and flexibility
With furniture rental, a business can enjoy complete flexibility. It is highly convenient with the need to pay up a minor refundable deposit instead of any major investment. Renting furniture allows a company to adjust the monthly installments to make it more convenient to pay up.
Buying office furniture is considered as a direct business expenditure with non-deductible interest. On the other hand, furniture rental is a flexible and short-term solution with less initial expenditure to avoid a big cash outlay. Rental payments can be tax deductible depending on your business and state laws.
Another benefit of furniture rental is it saves the cost of maintenance. Rental companies often offer free of cost service and replacement when required.
Air conditioners and purifiers
Renting air conditioner and purifiers makes sense as you compare all of the extra value you get from renting as compared to purchasing. When you invest in such depreciating asset, you have to go through a hefty one-time expense, and you are on the hook for any future repairs or replacements.
But renting these office apparatus involves one low-priced monthly payment. Another reason why picking the air conditioners and air purifiers on rent make sense is the overall servicing cost. You don’t have to bother with the maintenance and installation cost as it will be included in your rental service.
The non-committal aspect of renting such equipment allows you to upgrade and downgrade in sync with your business. This flexibility is also reflected in the portability of rental equipment.
Projectors, screens, and TV’s
Purchasing and maintaining such high-end equipment is an exorbitant affair. While buying a projector, screens or TVs, the money would have to be paid up-front. However, with renting, the payment is scattered. Renting is more beneficial as compared to buying as it also eliminates repair or service cost.
Also, accessories such as screen equipment along with longer connection cables add to the final bill when you own them. However, when you rent a projector, screens or TVs for your office, you get the affiliate services such as setting up the projector along with the extra needed items in free of cost.
List of Things that One Should Prefer Buying
Well, many people prefer an office on rent as they aren’t sure regarding the revenues. But, as an established businessman, it is always worthwhile to purchase your office space rather compromising with limited space and the overall policies of the landlord.
The Pros of Having An Owned Office Space
Real Estate Investment
Owning a commercial property is considered as a profitable investment. Locking in the commercial mortgage for long-term comes with clear, fixed costs for your business.
Ownership may provide your business with tax deductions in the form of mortgage interest, property taxes, and other items.
Being perceptive about what to rent and what to buy can make big difference to your bottom line.
After all, why tie up huge cash when you could use that capital to establish or grow your business?