Business advice: Buying a shop or rent?

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March 25, 2025 audadmin 0 Comments 0 tags

Business Advice: To Buy or To Rent?

I’m looking to open my hair salon and have found a salon space in a shopping center for an attractive price. However, the rent is around $7,000 per month. While I’m excited about the location, I’m also considering whether it would be better to purchase a commercial property and invest that money toward paying off a mortgage instead.

I understand that being in a shopping center may attract more foot traffic, but I can’t shake the feeling that renting might be a waste of money.

I’d love to hear your thoughts! Any insights or experiences you can share would be greatly appreciated.

Thanks!

One thought on “Business advice: Buying a shop or rent?”

audadmin says:

March 25, 2025 at 4:21 pm
It’s great that you’re considering your options carefully before opening your hair salon. Here are some factors to think about regarding buying versus renting:

Renting a Space:
- Lower Initial Costs: Renting typically requires less upfront capital compared to buying. You may be able to start your business without committing to a large mortgage.
- Flexibility: If the location doesn’t perform as expected, you can move to a better location without the burden of selling property.
- Shopping Centre Benefits: Being in a shopping center can drive more foot traffic, which is crucial for a new salon. High visibility can lead to higher customer acquisition if you position yourself effectively.
Buying Property:
- Asset Ownership: Purchasing commercial property means you’re building equity over time. Eventually, it could become a long-term asset that appreciates.
- Control Over Space: Buying gives you more control over modifications and improvements without needing landlord approval.
- Stability: You won’t have to worry about rent increases or lease terms that could change unfavorably in the future.
Considerations:
- Financial Stability: Assess your financial situation and ensure that taking on a mortgage won’t stretch your budget too thin, especially in the initial growth phase of your business.
- Market Research: Look into the demographics of the area where the salon is located. If foot traffic is high, renting may be worth the investment despite the monthly rent.
- Long-term Goals: Think about your business goals. Do you plan to expand in the future? Would ownership of property align with your long-term vision?
Conclusion:

Weigh the immediate benefits of a high-traffic rental against the long-term advantages of owning property. It might also be helpful to speak with a financial advisor or a real estate expert who can provide insight tailored to your situation. Ultimately, choose the option that aligns best with your business vision and financial situation.

Good luck with your decision!
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