Nothing beats the feeling of owning a small business with your name on it. More satisfying is knowing your small business is thriving successfully, with increased sales, and improved customer experiences. It takes time to achieve goals and objectives intended for your business, but once attained you are certain the small business will take flight. It will grow to insurmountable levels.
However, running a business and making it achieve great success for you is not always the ultimate goal. As a small business investor, you need to invest time and money to spur the growth of the business. To do this successfully, you must never be afraid of the investing process.
Most business owners are not just afraid, but also intimidated of investing. And too many times, they grow cold feet of the process and never realize true potential of growing the said business. It’s essential to learn the investment process. They are key lessons involved to help you easily make quick and better investment decisions in the future, for your business.
Financing and purchasing decisions
Picture this: John is a small business owner looking to purchase a “future home” for his business. He has been leasing his commercial retail space for the last three decades. While he understands the benefits of purchasing a “forever home” for his business compared to leasing. Yet, he is afraid of the process to make any sound decisions.
But once he approached a real estate broker and relevant details explained to him, the process became easier and smoother. He realized how much he stands to save on a monthly basis. He couldn’t wait to kick start the process of buying a “home” for his business.
Too many small business investors are faced with similar situations. They’re unable to make investment decisions perhaps are even too afraid to take necessary steps to go from leasing commercial retail space to purchasing “forever” space for their business.
This is where a real estate broker comes in. To help small businesses make informed decisions on how to save money by providing a step-by-step process evaluation. To make them understand what they stand to gain in the long-term.
This evaluation process begins with the real estate broker making recommendations about how a small business like yours can leverage on a good situation such as moving your business to a “forever home”. To make such recommendations a broker employs the use of financing and purchasing decisions to help a small business investor understand the many opportunities they stand to gain in the future.
In john’s case, he probably thought of taking a commercial loan to purchase a home for his business. But taking this road is not advisable and hardly does it yield results since it’s not guaranteed your business will meet online loan standards as credit score matters (especially if the business is not making profits to help determine its eligibility for the said loan). What John doesn’t realize is he has other better and encouraging options.
Valuable lessons learnt from helping a small business invest
John’s story is no different from other small business investors looking for a permanent home for their commercial business. Many small business owners are too afraid to make investment decisions, yet this decision will help steer the growth of their business in future. To make sound and informed commercial real estate investment decisions, there are key lessons to be learned …
1. There’s always a way, so find it
To make good and informed investment decisions, you have to learn never to give up. There’s no need to beat around the bush or keep wondering what you need to do. Find a way on how to make your decisions resourceful and creative.
Many times, small business owners give up before having even started their investing journey, and this becomes a huge problem which instills fear and are then encouraged to walk away from the idea of owning a commercial retail space for their business.
Intimidation delays their decision-making process therefore making it difficult to pursue their goals and objectives. Try and fail. Make sure to try again and again. Keep trying and failing, but never give up on achieving your desired results for your small business
2. Do the math
John did not see the bigger picture so he became afraid of taking a step to real estate investing. He felt the process was too hard and too complicated for him. Yet he was losing so much money leasing a commercial retail space instead of considering owning their space.
The amount of money John is paying to lease the space for his business would have been used to pay a commercial loan to build a permanent space with relatively identical square footage as the previous space he owned. So do the math and analyze how much you losing in terms of revenue and income when leasing space instead of owning it as a “home” for your business.
3. Owning a commercial space is not the end
Owning a “forever home” for a business is perhaps the ultimate goal for most small business owners like John. But that is not the end. Perhaps the most satisfying achievement would have been to lease out their commercial space and payoff any debts from the income.
Owning a commercial retail space frees up your resources and allows you to invest in other better things in future. Don’t be afraid to own a home for your business but also think of other ways to make this space resourceful for you in future.
Once you realize the power of making informed real estate investment decisions, as a small business owner, you stand to achieve greater results in future for you and your business.
Also, build positive relationships at all times with experts in the real estate world (think real estate brokers) to help make investment decisions a reality. They are much informed and experienced than you are and perhaps more willing to help make the process work. And help you achieve success later in life.
Don’t give up too easily just because you find investing intimidating. Remember to analyze your options at hand by doing the math and never assuming instead.
Also, keep in mind that owning a commercial space is just the beginning of good things to come in future. A good small business investor understands the importance of saving time and money, so allow yourself to believe success is achievable through taking the right steps and making sound real estate decisions that will steer growth and success of the business in the days to come.