Come on people… Keep it together.  Sure we are going through some tough times.  And sure, it is a good time to get purchase real estate but you have to use your heads and consider all sides of the situation before making the leap. You have to consider the present, the near future as well as the far future.

Maybe your business is doing pretty well considering the circumstances and you see this as an opportunity to gain an advantage over the competition…  I know of a consulting firm that is currently overpaying on a lease.  The fact is, they really don’t need the kind of space they have, It is on the ‘fancy’ side… To impress visitors and make the owner feel good about himself. Don’t get me wrong, nothing wrong with either of those things necessarily.  But now, the owner of the building is looking to get out. They are probably losing money with the empty suites. So the consulting firm wants to buy the building and use most of the space to expand the business into a new direction.  (an untested direction)   Is this the time to go out on a limb like this and risk taking on a big mortgage payment?

Sure, It might be. I am the first to encourage taking risks.  You can not dominate without taking risks. But please make sure you know what you are doing. Make sure your decisions are sound.  Talk them over with your network of like minded business people.   If everyone shoots your ideas down you are either a genius or an idiot.  Do you have what it takes to find out which one?

In the example I gave above the kicker is that there is an easy way to test the market for the new expansion… without the need for the additional space.  The new services could be offered at the clients sites. If they can build the business that way, taking the service to the client then they can work on bringing the clients to them.  But are they doing this testing… Nope.

No related posts.