The question of whether a startup should buy or rent can be a tricky one. Both options have obvious advantages and disadvantages and there is no single answer. There are some ideas, though, that can be used as general guidelines.
For some businesses, the answer to this is an easy one. For example, a business might be historically connected with a specific location so it makes more sense to own a facility there. Other startups might profit from the fact that they can transfer quickly to another location and for them, renting makes more sense. (more…)