Renovating Your Store—Expense or Investment?
Don’t make any decisions about remodeling your store before you do the math
Many storeowners approach store renovations with trepidation. Their biggest concern: what will this cost? But what is cost? If you buy a car, it’s an expense because two years later it’s worth half what you paid for it and it doesn’t return any income while it depreciates. However, if you buy a boom truck, it’s an investment that also depreciates but hopefully generates enough income to provide a good return at the same time. So if you renovate your store is that an expense or an investment?