Should we build or lease a factory?
Now, a need to expand production is becoming a necessary thing. Investors want their business patterns to be more developed. However, they have a arising problem: should they choose to build or lease a factory? At present, many investors choose to lease a factory for lease. In this article, Kizuna will reveal 5 reasons explaining this.
5 reasons make leasing a factory a better choice for enterprises
1/ Difficulties when designing and building a new factory are removed
If starting to build a new factory, you will face many problems:
- You need to find a factory’s position suitable with feng shui and convenient to develop.
- You need a well-developed road system that vehicles can move easily. If the system in a place you want to build a new factory isn’t developed, you will spend an extra amount for extra construction.
- Designing a suitable factory is very difficult.
Meanwhile, you don’t need to resolve 3 above problems when choosing to lease a factory. All you need is to refer and choose a suitable factory among factories for rent in your area. If you agree, 2 parties will sign a factory lease agreement and you can use a leased factory.
#2 Many costs are saved when leasing a factory
Investment costs when you decide to build or lease a factory have a large distance. Moreover, the city land price is higher and higher now. So, the cost to buy land to build a standard factory isn’t cheap. What about choosing a suburban area to build? You still spend a large amount to consolidate roads. A suburban area isn’t often convenient to move or distribute your products.
In addition, you also spend a certain amount to complete some legal procedures. This amount isn’t small and you will need a lot of time to complete all procedures. On the other hand, you will face many bad consequences if choosing a wrong factory position. Why don’t you choose a safer choice - a factory for lease? You only need to pay amount regulated in a contract and some arising amounts if any.
#3 Time is shortened
Time to build a new factory is also a problem. A small factory needs some months to build, while a large one needs some years. Long construction time will make you miss some opportunities to develop. When you complete your factory, “delicious pieces of cake” were eaten by your opponents. Choosing a workshop for rent and a warehouse for rent will help an enterprise shorten time so that it can focus on its production.
4/ Production workings are started earlier
Your enterprise can start your workings right after signing a factory lease contract and paying money. All works become easy, convenient and fast. Business development will be shortened and go your way correctly. Then, you will have more time to decide to choose a place to build your factory.
5/ Legal difficulties in Vietnam are supported to resolve
The law in Vietnam is very strict. You have to complete a lot of procedures so that your new-built factory can start to work. If you can’t complete, your factory can’t start to work too. A minor problem when completing a procedure will take your time to do it again. Meanwhile, if leasing a factory, you will be supported to complete all procedures by a lease unit. Then, your enterprise can start to work immediately.
Building or leasing a factory depends greatly on the potential of your enterprise. Leasing a factory is a method to expand a business bringing many benefits for your enterprise. Time is not only shortened, but many costs are also saved. Finally, you can implement your business model immediately by leasing a factory.