Back in the day, small businesses would almost always stick to their roots and end up with a customer base that covers only a part of the state. Today, however, various technological innovations have allowed small businesses to become rather mobile, making relocation an actual and very real consideration. But what most small business owners fail to realize is that relocating an entire business isn’t as easy as it sounds and often results in various issues that could have been avoided with some careful planning ahead.
Different businesses have different reasons for relocation, but these can be boiled down to five main ones:
- Issues with workforce and labor
- Need for a new market
- Desire to upgrade equipment and/or facilities
- Lower business costs and/or increase in revenue
- Desire for a better, quality life
Now, most moves can be attributed to a combination of said reasons, but the two most commonly cited ones are finding the appropriate workforce due to a lack of qualified workers for specific occupations and becoming too large for current, often small facilities.
One the most pressing matters arising from the act of relocating a business is that workers will rarely follow their company’s move and simply find another job. Companies rarely have enough resources to support both the move and a relocation bonus for their trusty employees. This can be an issue, especially when you’ve already have qualified, and more importantly, valued employees. Have in mind that you would probably have to hire and train new employees, which can result in company downtime and additional spending of company resources.
Don’t change the address until you’ve finished moving
Relocating a small, but growing business can prove itself to be a logistical nightmare. Let’s say you’ve moved and you’d like to forward your mail and packets to a new address. Most delivery companies simply do not offer forwarding services which can result in customers having to request expedited exchange orders. A good idea is to keep both locations running simultaneously, at least for the first 30 days. This way, you can receive packages even if they end up sent to your old address.
Relocation costs are often higher than you think
Relocating an entire company, including the equipment, furnishings, and merchandise can burn a hole in your pocket if you’re not careful. This is especially true for business owners who, together with their companies, also have to move their homes and personal stuff. Plan ahead and find a relocating company which offers quick deliveries or consider investing in a truck hire service. Additional costs arise from the simple fact that your company is offline during the move, so plan your budget accordingly.
Office Space Options
Leasing office space can be rather expensive, considering that most lease owners insist on two-to-five year contracts. Those who don’t want to burden themselves with a long-term mortgage should consider leasing with the option to one day own the property. This kind of arrangement allows business owners to purchase the property once their lease has ended and save any future expenses of having to relocate again. Small and growing businesses also have the option of using co-working spaces as an affordable workspace option.
Consider your budget and always set aside additional funds for any unexpected expenses, which will most certainly arise at one point or the other. Get all your information regarding the location, new office spaces and state-specific laws and tax options well in advance and have in mind that the chances of everything going exactly the way you planned are virtually non-existent. This will inevitably happen and you have to prepare by making the appropriate arrangements and setting aside not only additional resources but additional time in order to avoid missing customer’s orders and important deadlines.