Businesses move for as many reasons as families move – a new space, expenses, growth over time. And like a family, you want your business relocation to be smooth and happy for everyone. But moving a business has a few more considerations than moving a family.
Businesses cite five main reasons for moving: the desire to increase cash flow, quality of life concerns, the desire for new markets, necessary upgrades to facilities or equipment, and labor force issues. Any of these concerns are valid and expensive if relocation isn’t carefully considered.
Here are three steps to planning for your business relocation so you can remain excited about your new location instead of stressed out by the process.
1. Know Why You’re Moving
There are a lot of reasons for business relocation. Knowing exactly what your reasons are is an easy way to narrow down where you want to go – and, as a consequence, what you can afford.
Taxes
Two certainties of life: death and taxes. That doesn’t mean taxes have to hold you back.
If anything, taxes can be a benefit to moving. Relocating from one Texas county to another, for example, could lower your sales tax, while moving between states could lower your income or inventory taxes.
That said, taxes could also go up with a move. When you sit down to figure out moving expenses, calculate your taxes for your current location and all of your desired locations to know what your expense shift will be.
Space
Let’s say your warehouse has a leaky roof. Or your office isn’t big enough for the number of employees on your roster. Or you’ve been eyeing a new neighborhood with a better location.
A new space could be what you need to solve those problems. On the other hand, you want to consider a new space just as carefully as you considered your current one.
A key question to ask is what you want from a space, and what you’re willing (and able) to pay for it.
Operations (And Operating Costs)
Maybe you chose your current home base because of convenience, but are now finding that you would be better served in a different area. You may also be considering selling your current space and using those funds for operating capital.
What’s important to consider is the long-term ramifications of a business relocation. If you’re a retailer, for example, your customers may find a new location more – or less – convenient.
You may also end up paying more in rent at a new location, but the additional funds could help cushion your operating budget until things are running smoothly again. Be realistic about what you can get for your space, and how far that money can get you.
2. Do Your Homework
Think of it this way. You wouldn’t take a math test without doing your homework and learn how to do the problems.
The same thing applies to your business – knowing your numbers and spelling out your plan beforehand will save you from costly mistakes.
Know Your Risks and Benefits
You know why you want to move. Now have an honest conversation about the pros and cons of business relocation.
For example, relocating might offer you a better working environment, but it may also cost you time because you have to close operations while moving. Or, relocating may open you up to new customer markets but cost you employees who can’t make the new commute.
Know What You Can Afford
There’s a big difference between a solid six-months of business and the cost of a brand new three-year lease.
There are also other expenses besides your new rent. Moving comes with its own expenses, like having your internet shut down and set up in a new location and reinstalling new technology. Not to mention the money you’re not making while your business temporarily closes for relocation.
3. Have a Detailed Plan
It’s the standard rule of moving: don’t throw a random assortment of things in a box and label it miscellaneous, because you’ll have no idea where it’s supposed to go or what you’re supposed to do with it.
The same strategy applies to business relocation. A clearly articulated moving plan from before you move all the way through settling into the new location will help relocation happen more efficiently.
Before You Move
In a perfect world, you’ll have 12 months (and a 12-month plan) to know all your key personnel and what each person’s job will be. This will also make it easier to keep all employees involved and help employee retention from one location to another.
During Your Move
This is the time when it’s useful to know in detail everything that has to happen. Because the time spent moving is the time your business isn’t running, and that costs you money.
There are also ways to lessen the impact of the move and continue customer service. If the internet is a regular part of your day-to-day work environment, one option is to have internet set up at the new location ahead of time with an employee there while everyone else is transferring over.
You can also have mail delivered to your new and old locations for an overlapping period to make sure any mail sent to one address will still make it in front of you while you’re between locations.
After Your Move
The fun doesn’t end when the boxes are unpacked. Having a clear plan for both your customers and employees will help get your business off to a running start.
For example: clearly communicating with your employees when they need to start work, or where they need to park. Explain any new customer or employee systems, where everything is located, how to find your new location.
Business Relocation Made Easy
Moving doesn’t have to be stressful or daunting, no matter how long your inventory list.
OleRRelo provides extensive moving services and resources for a range of situations, including a move between the U.S. and Canada, resources for employee relocation, and more. We take pride in delivering transparent communication and consistent customer satisfaction.
Ready to get your business moving? Contact us to get started.
