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If you’re planning on starting a big business, financial expert and investor Barbara Corcoran recommends buying your own space instead of renting it from day one.
This advice comes from Corcoran’s Business Unusual podcast, where the “Shark Tank” star answers questions submitted by listeners about topics such as business, life and how to overcome common obstacles. Masu. This is why Corcoran said business owners cannot transfer profits to landlords.
Barbara Corcoran: “It’s advantageous to buy a house now”
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The two most important decisions in business
Deciding what business you’re going into and how you plan to run your business are the two most important decisions you’ll make as a business owner, according to Corcoran.
Business owners who are building businesses know firsthand that every penny counts. Paying rent can be a particularly painful expense because, as Corcoran notes, business owners are essentially giving their profits to their landlords.
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“If you’re paying rent, your landlord is actually still your boss, because every time you try to expand and expand your business a little bit more, your landlord is asking for a rent increase. “You’ll notice,” Corcoran said.
Corcoran said the faster you can get your property under control, the better off you are as a business owner.
Why business owners should start with a small space
Don’t think that your first business needs to be located in a fancy, expansive office. Corcoran recommends that business owners pursue the “smallest footprint possible” when starting a small business and scaling as it grows. She said this is because many new business owners have too much space to begin with.
“It’s better to buy your own tiny little space and grow as you need it,” Corcoran says. “If you can scrape together a 10% down payment and take control of your space, you’re also in control of your own destiny.”
Benefits of buying your own property
During the podcast, Mr. Corcoran shared personal anecdotes about his early experiences building his business.
She was a real estate agent and needed a new area to open an office, so she was able to purchase space in many New York cities before they became great places to live, such as Brooklyn and the South Bronx. , Corcoran said they were fortunate to be able to enter these areas early and own buildings at low prices.
If possible, Corcoran strongly encourages business owners to purchase their own property. “You’ll be completely your own boss, you won’t have a landlord as an unwanted partner, and you’ll end up making a good investment that will one day be worth a lot of money.”
GOBankingRates Details
This article originally appeared on GOBankingRates.com: Barbara Corcoran: Why Business Owners Shouldn’t Make Their Landlords Rich
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