How To Decide If Relocation Is Right For Your Business
October 20, 2021
The decision to relocate a business should not be taken lightly. Apart from the upheaval and the risk that the decision to move is wrong, there is a multitude of arrangements to be made to facilitate the move. These include hiring professional removalists and even interstate removalists to help you plan and carry out the move when it happens.
However, before you get anywhere close to that point, the decision to relocate your business needs considered thought. Whilst a move might seem to be the right thing to do, it should not be done on a whim, or simply because the offices you are considering “look nicer”. Being in fantastic looking business premises is desirable, but that should not be the driving force behind your decision.
The decision comes in three stages. The first is to identify what positive reasons you have for relocating. Next should be considering what impact the move will have on a range of matters. Finally, if you edge towards deciding to move, confirm the needs of your business will be met by the location and premises you choose.
Reasons For Relocation
No two businesses will ever have the exact same reasons for relocating so we are not going to prescribe what yours should be. Instead, here is a list of the main reason that can justify relocating.
- Financial: Relocation can occur either as a way of increasing revenue, or to significantly cut costs, or it could be a combination of both.
- Restructuring: If the nature of how your business operates changes significantly, or you need to alter its structure, then part of that process can include moving to alternative premises.
- Expansion: The favourite reason amongst business owners, and rightly so, as an expanding business having to move to new and bigger premises means it is a business heading in the right direction.
- Emerging Markets: It could be that the business sector a company operates in changes to the extent that its marketplace both geographically and demographically alters, and that may require it to relocate.
- Altering Supply Chains: If a business relies on specific supply chains and those supply chains alter or move, it can mean that the business must move too.
- Personal Circumstances: Probably more applicable to small businesses, but even for larger ones, if the personal circumstances of the business owner change to the degree that they needed to move cities or states, then so too will the business they own.
The real impact assessment you do will need to be far more detailed than what we outline below. Here, all we are doing is highlighting some of the areas you need to carefully assess if your relocation proceeds.
- Cost of the move including removalists, packing, and storage if required.
- Costs of setting your business up in its new premises including installation of equipment, utilities, telecoms, etc.
- Legal and contractual considerations
- Supply chain disruption/changes
- Disruption to customers
- Effects on your staff, including travel alterations
- Risk to and maintaining your brand
Consider Your Needs
Finally, you need to ensure that whatever new premises you move to, their location and advantages they offer meet the needs of your business. That could be a long list but key amongst them will be affordable premises including rent and utility costs. You also want to be located near to your target market, whilst at the same time close as possible to your suppliers. Finally, you want premises that your staff will enjoy working in, so that, hopefully, their productivity will increase.