Important considerations when relocating business
Businesses may need to change location for any number of reasons and a move is certainly not a decision to be taken lightly.
However, if relocation is done in the right way, it can have many benefits for the companies concerned.
This means keeping a watchful eye on costs as they can quickly mount up, while not all employees may welcome a move to a new location.
Reducing the cost of business
If rents or running costs are particularly high, it can put a major dent into a company’s finances and so a cheaper location may be better.
This would allow for costs to be managed more effectively and local business rates and rents should always be a driving factor behind any decision to move.
Similarly, some consideration should be given to the consumers – while some existing trade may be lost as a result of a move, it could equally drive exposure in a new location.
Keeping your distance
Being close to customers is often considered to be of vital importance as it helps to keep costs down, while moving further from a customer can have a detrimental effect.
Transport costs involved with moving also need some thought, as moving assets from office to office does not come cheap.
Any costs will be dependent on the size of the company though, as larger companies will face invariably higher costs than a smaller business, simply because of the scale of what is involved.
Staff retention
Some staff may not wish to move to a new location, especially if they already commute long distances in order to work.
Should those distances increase further they may be forced to consider their positions, which is not an ideal situation for the company.
If they are particularly skilled and the company is not too great in size, training individuals at an additional cost could negate any advantages of a move.
Are there alternatives to relocation?
The major consideration for a relocation is to save money on costs and this is what makes it a viable opportunity for many businesses.
However, there are still options for those that do not wish to move, with corporate restructuring one such way that unnecessary spending might be reduced.
In any instance, all options should be carefully considered as what benefits one company may not necessarily benefit another.
By Phil Smith