If you run a business—no matter what kind of business it is—chances are that you would need more space in the future. When companies begin to expand, they need more storage for their inventory. But space is expensive. In places like Singapore, where every small space may mean spending more than S$1,000 to S$5,000 every month, space is a valuable commodity. The costs of these, of course, vary depending on the amenities included in the rental space. However, it is still true that businesses cannot afford to rent more space than they already have.
That being said, one of the things that businesses must decide on is whether to rent a warehouse or purchase a lot to turn into a warehouse. While there are benefits to owning the space, there are also advantages to simply renting a warehouse and never having to worry about its upkeep, taxes, and many more. And if you do not have the capital yet to purchase one, then renting space is the next best thing for any business.
Access to Valuable Resources
Even if you have the money to own warehouse space, don’t forget that you’re still going to spend on the equipment and machinery there. Renting a space or partnering with a third-party logistics provider will give you access to valuable resources such as a warehouse management system and customizable racking system.
You will also be given access to a host of warehouse equipment and machinery. You can rent or buy the right forklift to use in carrying heavy boxes of inventory. It might also come with renting the warehouse space.
Aside from equipment and machinery, renting a warehouse will also give you access to trained professionals. While there is an option to manage the warehouse yourself, think about whether you need complete control of the warehouse or not. If you just need a bit of space there to store your inventory, you can share the rent with other businesses and have trained professionals deal with arranging your goods there.
Savings That Can Be Spent on Business Expansion
The most important reason it’s more practical to rent a warehouse rather than buy a space is the amount of money you can save. Instead of spending what little business capital you have for the loan you need to afford to purchase the land, you can use that money to expand your business. Instead of paying for equipment, renovation, design, and system installation, that money can be reinvested into your business to help it grow.
Renting a warehouse also allows the expansion of your business at a lower cost. Imagine being able to store more inventory with a fraction of the cost that you would otherwise need to spend if you’re buying a property. Leasing a warehouse will give you the financial capital to reach new markets without needing to spend the money on the facility.
Makes Time Available for More Important Things
Do you know why outsourcing is such a huge hit today? It’s because time is of the essence and businesses do not have the luxury of time to do accounting, recruiting, marketing, advertising, and many other administrative tasks. This is essentially what you’re also saving when you lease a warehouse rather than buy one.
Would you rather spend extra time maintaining your warehouse and ensuring everything is in order? Or do you want to use that time to think about marketing campaigns that will bring more people to your business?
Provides Faster and Cheaper Delivery
Customers demand faster delivery at a cheaper rate. Only by renting warehouse space can you provide that. Leasing a warehouse will not drain your resources like buying and maintaining one does. Most rental warehouses also offer services such as distribution and transportation.
And since this is their line of business, they can partner with interstate or intrastate carriers and freight transport either by land, sea, or air. Warehouse rental companies have the best solutions to get your items to your customers in the most affordable and convenient way.
Frees Up Space
Are you tired of having to move around boxes of inventory in your office? That’s because your business doesn’t have the space to store these goods anymore. Renting a warehouse will solve this problem. Employees will have a better work-life balance if they can move freely around the office without minding that it almost looks like a storage room. Remember that your employees’ productivity is also hinged on the conducive environment in the office.
Warehouse rental is a booming industry, which means that other businesses see the benefits of leasing warehouse space rather than trying to buy one. Expanding a business comes with a lot of responsibilities. This includes choosing between the benefits of buying or leasing storage or warehouse space.