Recently we’ve been speaking about the many and varied ways technology allows us to run a business and the different ways of working people can enjoy as a result. This led us to reviewing some really cool home office set-ups, as well as touching on the benefits of co-work spaces. Of course there’s always the tried and true hiring or leasing of office space which also works for some. Which is also to say, it doesn’t work for everyone.
Lots of reasons perhaps starting with the overreliance on an office to make a strong statement to your market like:
- we’re bold and creative;
- we’re huge and ready to take on the world;
- we’re loaded down with liquid assets so you know we won’t bail on you;
- we’re social, we want to help so feel free to drop by or make an appointment for an in depth chat about your growing business.
(We like number four but as always the focus has to be on adding value, not so much, “don’t you just love the office?”)
The leasing of an office or business space may well be an absolute necessity. For example, most gym businesses have to have somewhere to set up the weights and cardio equipment – they need space. If this is the case you can’t really run a really large, traditional, weightlifting gym from your apartment.
Help me, I’m being held against my will by my commercial lease
That’s a plea for help we hear a lot. Perhaps you do too.
Quick story. We charged into a lease agreement a while back. A substantial space that upon reflection was too big, too ambitious and we ended up regretting it to a certain extent. Eventually we were let out of the lease, marginally older and a lot wiser.
We found a great co-share arrangement after that and we’re happy… but still ambitious. And it seems our ambition may have found a home – for our business. Check out our throwback link to what we liked for a really solid solution to our commercial space question. There’s something in it for you too.
Purchase your own commercial property
We love this option because it increases the value of the business, we’re not tied to a lease per se and the right arrangement allows us to take on tenants. Tenants who, potentially, may themselves become either valuable resources to us or even clients further down the line.
Great, so how do we secure that commercial property if we don’t want to overreach financially?
A super idea
Did you know that superannuation is not just a lockbox full of your hard-earned money that will only be made available to you after you’re deep into your 60s? That’s the common perception but it doesn’t have to be the case.
Self-managed super funds (SMSF) have provision to be able to make acquisitions such as yup, a commercial property. This is wonderful because now your business can pay its rent into your super. Great for your future, great for your fund and great for your business. Okay, so maybe you don’t have enough in your own SMSF to secure a commercial property but the rules tell us that you can pool your funds together with up to 3 other entities’ SMSF. This may effectively quadruples your investment potential – all things being equal of course.
Tip: ideally, they are family members’ SMSF’s that you are pooling. Keep in mind that while you may love your mates, things can get murky quite quickly outside the family super environment.
It’s not rocket science, nonetheless it most certainly is something you should talk to your accountant about. There’s really no reason you shouldn’t at least consider purchasing property using SMSF. With the ability to pool those resources, it’s a good time to call us about dipping a toe in commercial property.