When finding space to house your food service business, you have a lot to take into consideration. The most important one being whether you wish to purchase or lease space. Both are common in the industry and they each have their own unique advantages and disadvantages. There are several factors to consider that will help you make your decision.

Location

If you have your heart set on a specific location, then the answer may be given to you already. You may find that the only available spaces in the area are for leasing, or the they are only available for buying. Even if you do not have a specific location in mind, you may find that those locations that promise success will only give you the option of either leasing or buying. Obviously, the location of your business can impact whether or not you will be successful. Therefore, you may have to take whichever option is available to you.

Rules

Rules may not play much of a factor if you choose to buy, but they can seriously impact your decision to lease. Many leased buildings have specific rules about improvements, modifications and expansions. You may be limited in more than what you can do on the inside. Some spaces will even have rules about what is allowed on the outside. When you are looking at a space for lease and trying to make a decision, it is important to find out what rules apply to the space. From there you can determine if you think business growth will leave you with a need to expand or modify your space in the future.

Cost

When you purchase space, you will generally need more money upfront than if you chose to lease. In this regard you may find that leasing your space is more beneficial to your business and your budget. Aside for upfront, costs you also want to look at the other costs associated with making your decision. In some cases your lease will state that the building owner is responsible for building repairs and maintenance. This can be a valuable savings for a new business that is trying to establish themself. You also want to find out if your lease payment includes taxes and insurance. While purchasing gives you the building to use as you see fit, you may find that leasing is more cost-effective for you.

In the end you will find that the decision between leasing and buying is one that only you can make. If you opt to lease it is important to ensure that you are protected from anything that could cause harm to your business. You want to be certain that the lease period allows you ample time to establish your business without worrying that you might lose your space. You should always have an attorney look over any documents, no matter whether you are leasing the building or purchasing it. This way you know that your business will be fine regardless of your decision.

Found this article helpful? Read more relevant articles and how-to's in the food service industry.