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How to reduce risk when expanding your business

A temporary building can make investing in premises low risk. Click to read about how using a temporary building can make investment planning controllable.

There is risk everywhere, from crossing the road to crossing Niagara Falls on a tightrope, although the former is more likely than the latter. Risk for a business comes in many forms and can be internal, such as taking on new staff, or external as we are finding with the new economic reality. There have been enough forecasts, both positive and negative, to make the head swim, but the ultimate economic driver is confidence and there is no real reason for this to be shaken. Overall the world economy is performing better and as Kamal Ahmed the, BBC economics editor, said recently “A rising tide lifts all boats”.

There has been a bit of rolling back of the doom laden scenarios mentioned before Brexit with even the IMF, which was pointedly gloomy, changing its tone and forecasting growth of 1.3% in 2017. Of course none of this is ideal and it can inform a business’s investment decisions.

Investment equals risk

Growing a business does often warrant a sizeable investment and this is where the risk lies. The biggest investment a business makes is often in property, usually associated with growth and expansion. Getting this important decision right means that a business can capitalise on growth opportunities, getting it wrong can make life very difficult.

Property expansion – risk options

There are many choices to expand facilities including erecting a new building, leasing off site or using an on-site temporary building. All have their plus and minus points and the advantages of each depend on the business circumstances. New build relies on an accurate growth forecast as the risks of getting it wrong are high. Leasing off site does lower the risk but does not afford much flexibility should circumstances change.

Temporary industrial buildings – the low risk option

A temporary building is installed on site and can be hired for as long as needed. These aluminium framed buildings can be built quickly and easily without needing any foundations and used from 3 months to fifteen years plus. Because temporary buildings can be used long term as well as short you usually have the option to buy them as well as hire. For those feeling confident in making a capital investment this is another option to bricks and mortar and comes with the added benefit of being able to sell the building if it is no longer required. You can choose from multiple sizes and specifications and use them for warehousing, storage, workshop or loading space. Critically though their risk factor is practically negligible

Hiring space off site is another low risk way to expand your facilities. Trying to find the right space however may be difficult as suitable industrial space is sparse in some areas so you might need to wait for something in the right location. You also might be looking at extra costs such as transport and security, plus the logistical problems of managing stock on a different site.

Many businesses are now avoiding these problems and keeping their risk low by choosing temporary buildings as a way to quickly, effectively and economically increase operational capacity on-site. Space can literally be expanded and contracted in line with the delicate economy and unwanted risk kept firmly at bay. See more about temporary industrial buildings.