Relocating a business is something that requires careful consideration and a lot of thought keeping in mind all the things that go at stake or can be impacted by relocating a business. Relocation of a business could lead to either a loss in clientele or a gain, and it is upon the management to make the right decision after careful analysis. What relocation actually constitutes includes relocating an office to a different location within the same city, intercity, or across borders. Relocating could also refer to open multiple site offices in the same or different locations. All of these decisions are likely to impact a company’s finances and hence should be made carefully.
Listed below are five things that you should take into consideration while relocating a business:
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Relocating a business is not easy
Relocating a business is anything other than easy – it involves figuring out your logistics from scratch, considering where your employees live, thinking of your proximity to amenities, etc. To top it off, moving your actual office and all its equipment from one place to another can be pretty hectic. Rather than handling all moving yourself and potentially damaging equipment or losing important documents in the process, you should opt for professional corporate relocation services that will relocate your complete office from one space to another while ensuring the safety of your goods.
Relocating a business is expensive
Relocating a business entails a lot of cost and businesses should anticipate associated costs in advance. For instance, one of the associated costs would be the distance across which your business is getting relocated – the more the distance between your current and to be office is, the higher would be the associated cost of moving and shifting everything. You would also possibly see an increase in overhead costs depending on the locality you are shifting to. Your utilities bill, shipping payments and any mortgages you are paying would also possibly increase.
Relocating a business impacts all stakeholders
Your employees and shareholders are most likely to be impacted with business relocation as your current employees are likely to be living close by or have already figured out transport and routes to the office. by shifting your office your employees may have to figure out new routes. in order to make this transition easier for them, as a business you should possibly provide them with a travel allowance. If your shareholders or investors frequently travel to your offices, relocating your office could affect them as well.
Relocating a business affects growth
Your new location is likely to impact you in the short and long term both, and could either cause a drop in your growth rate or help it increase. Certain cities or locations are hubs for certain types of businesses and companies who belong to a certain group hope to have their offices relocated to capitalize on the existing clout around that area or locality. For instance, certain places in a city feature a lot of restaurants and are a “eat out hub”. Restaurants that are located in such localities tend to do much better than those that are located in stand-alone areas.
Relocating a business impacts customers
Relocating your business is likely to impact your customers and this impact will be higher if you are relocating too far away from your original place. If you are a retailer or have a business that requires your customers to visit you frequently, you could possibly suffer a loss if your current customers find your new location to be too far away. However, if your customers don’t have to visit your office and you run an ecommerce store, your relocation may not affect current customers. On the bright side, relocation may allow you to become popular and familiar in a new customer segment.