Is your business headed downhill, needing to upgrade, or are you running out of space and it’s costing you (a considerable number of) valuable clients? Well, it may be time to relocate. These are but some of the reasons why most people would want to move their businesses to new addresses. So, whatever your reasons are for wanting to move your business, it’s imperative to know how to go about it. Moving your venture to a new location can be characterized by a lot of chaos, loss of productivity, and disruptions that could see you lose valuable customers. However, when done right, the move can see you exploring and conquering new territories, gaining new clients, and boosting your sales. But then again, it doesn’t come easy.
Relocating your business is an intricate process and a decision that needs to be carefully analyzed. This is where your modus operandi will be tested. It’s a multi-step process requiring a great deal of preparation and in addition to this, it’s one of those decisions that drain you physically and psychologically. In a nutshell, it’s a situation that requires all hands on deck!
Without further ado, here’s how to relocate your business.
1. Planning Ahead Of Time
Moving your business from one location to the other can be a daunting task and a process that requires a good strategy. There are so many challenges and the smallest mistakes can send your company spiraling down. Developing a good plan and strategy will help to ensure minimal damage, disruption to operations, and loss of productivity. There are so many aspects to include in your plans; ranging from the moving expenses to the logistics, notifying clients, and perhaps considering your employee’s needs. Planning a business move is not a one-day affair, it requires time and a great deal of cooperation from all fronts.
When planning, it’s important to keep everyone in the loop. As a responsible boss and a determined entrepreneur, you may want to schedule a meeting or two with your employees and let them contribute to the discussions. This can provide you with the opportunity to assign specific tasks while taking each and every employee’s concerns into consideration. As much as it’s stressful for you, it can be more overwhelming if you leave your crew second-guessing about their fate.
2. Determine a Budget
One thing you need to know is that compared to moving into a new home in your locality or a different location overseas, relocating your business could be a couple times more expensive. This may depend on the nature of your business, your assets, and where you’re relocating it to. Nevertheless, with a well-structured plan and with a supportive team, you can make this move a hustle free experience. Among the most important things you need to do before you even start packing is to set a budget. This means identifying all the costs that will be incurred prior, during, and after the move. Allocating the necessary funds in all the aspects of the move will go a long way to ensuring a smooth and seamless transition. Here are some costs to consider when budgeting for a business move.
- Hauling costs – Moving your business equipment to a different location is the most expensive aspect of your move. Before you consult with a moving company, it’s important to take inventory of all the things that need moving. In addition to this, you also need to do your research on the best moving companies in your area as you compare quotes. On this note, local moving may cost less than interstate or international moving. As much as it may seem obvious, however, the amount of money you part with will also depend on the mover you choose, and so will the experience you get.
- Lease deposits and closing costs – It may be that you’re either buying or renting your space. These are important aspects that need to be included in your budget. While at it, you may also need to factor in renovation costs in your new workspace.
- Sustenance costs – Your employees may need to be paid overtime if they’ll be helping with the packing, lifting, and other tasks involved when moving. You may also want to consider whether to offer them some sort of compensation or relocation compensation, which in most jurisdictions, is a legal requirement.
3. Notify Your Customers
Everyone you do (or don’t do) business with may need to know that you’re relocating. To do this effectively, you need to make a contact list of clients and suppliers that matter most to you and perhaps delegate one of your employees the task to send notifications. Prior to and after the move, consider putting up a signage post that prepares your customers. This can serve as an indication that you’re well organized and that you are concerned about your customers. Most importantly, as you change your physical and mailing address, don’t forget to send your clients a change-of-address email or card. You don’t want them sending their mail, checks, or other important documents to the old address a few months down the line after you’ve relocated; it can be overly frustrating for any business.
Why Should You Relocate Your Business?
A combination of different factors such as poor growth and change of products can lead you to consider relocating your venture. While most of these reasons may differ from one entrepreneur to the other depending on the nature of their business, let’s take a look at some of the common reasons why people move their businesses.
Opportunities for Expansion and Growth
In most cases, especially when starting up a business, it’s common for entrepreneurs do not consider the aspect of growth. As the business grows, you may realize that your store, office, warehouse, or similar facilities are not sufficient enough to meet the demands of your clients in terms of space. It’s only natural to move into a more spacious facility that adequately allows you to serve your customers better, especially when growth is imminent and your business needs to expand.
Labor
It’s important to be strategically placed in a location that provides you with specially trained personnel and at reasonable expected wages. While the search for skilled labor may not be a direct factor to make you relocate your business, it may also have a huge impact adding to the list of reasons to move in the long run.
Taxes and the Cost of Real Estate
As you might have noticed, some states and countries do offer tax deductions to attract new investors. These incentives could work in your favor, especially considering the many taxes you have to pay as a business owner, which could be higher in your current location. Rents and real estate costs are also factors that could make you relocate, especially after noticing that you’ll save a couple of bucks or land a handsome real estate investment for your business.
While relocating may carry a lot of risks, it can also be one of the smartest decisions you’ll ever make for your business. It’s very likely that the move will work towards your favor. However, you’ll need to find the right location that addresses your needs as much as it helps to serve your customers better.
