There can be multiple reasons for relocating your business. For instance, you could be expanding your business. Or you might be facing a hike in rent or increased labor costs. Perhaps you need greater availability of raw materials to keep your business going. You might even have personal reasons for relocating your business.
All the same, the way you go about it can make or break for your business. Therefore, you need to approach it carefully. Additionally, there will be a financial cost, and this could even be the case for the long term if you’re not careful.
So what does relocating your business look like for you? Are you moving an office within a city or are you moving to another city? Are you relocating your warehouse while keeping the original office operational? Whatever your relocation looks like, here are some important factors to consider first.
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1. Consider Your Overhead Costs
The rental cost of your new place is not the only thing to consider when you are relocating your business. The numbers can be more complex than that.
For example, you need to think about the overhead costs like utilities, removal costs, snow removal, repairs, replacements, and so on during the cost-benefit analysis of your relocation.
Moreover, there can be hidden costs of moving, and these costs can be different for every organization. Therefore, you should try to anticipate any financial surprises before actually relocating your business. For instance, after relocating, you could find out that the roof of your new office needs repair or replacement. If this is the case, however, Patriot Roofing and Construction can help you.
2. How Will Relocating Your Business Affect Your Employees and Stakeholders?
It’s essential to consider your employees before relocating your business. Ask your current employees how your relocation will affect their commute each day.
Additionally, if you are relocating your business for the purpose of expansion, will you be able to attract new employees to your new location? Also, is there public transportation available in your new location? Relocating your business can be a particularly sensitive issue for your employees who rely on public transportation to get to the office.
Moreover, some employees may find it necessary to leave their job if your office is moving away from a metropolitan area. If that happens, you will need to hire new employees to meet your staffing needs, and that is another cost. Prepare for these sorts of changes by discussing your relocation decision with your staff.
3. Will Your Customers Still Be Able to Find You After Relocating Your Business?
Your customers are the lifeline of the financial health of your business. So your most important concern before relocating your business should be the effect it will have on your customers.
On the one hand, relocation can prove to be beneficial if you are moving closer to most of your target consumers. However, if most of your customers are located near your current location, then relocating your business can cause your business to suffer. Therefore, it’s good to consult with your clients to ensure it will be convenient for them to travel to your new location.
If most of your communicating with your clients is over the phone or by email already, this could be a moot point. But if most of your clients need to visit your company in person, you could lose a lot of business to your competitors after you relocate.
4. Are There More or Fewer Competitors in Your New Location?
If the area where you are planning to relocate your business has many other establishments that offer similar products or services, it’s going to be hard for you to establish your business and survive the competition. Relocating can prove to be a wiser decision when your new location has fewer competitors.
Therefore, take into consideration whether more or fewer of your competitors are in the new location.
Additionally, if possible, move to a location where your clients and stakeholders can easily access your facility. Additionally, ensure that the demand for your products and services can be high.
Find more great ideas to help you run your business more efficiently by checking out other articles our blog.