If you want to improve business revenue, relocating your business might do the trick. But relocating isn’t the best option for everyone. You want to make sure that relocating is the right decision and that it will improve your profitability.
Is Relocating Right for Your Business?
Consider the following questions to find out if relocating is right for you.
1. Can You Find a Better Workforce Elsewhere?
Some businesses relocate because they want to tap into an increased workforce. Workers with similar skillsets congregrate where companies need their skills. Many designers and editors work in New York City, while tech experts often move to Silicon Valley.
If you’re looking for young workers just starting in their career, you might want to move your business to a college town.
Keep in mind that relocating might cause you to lose some of your current workforce, so make sure you’re able to pay the price.
2. Do You Need a Larger or Better Office Building?
Another reason to relocate is simply because you’ve outgrown your current office building. You need a larger space to house all your employees. You might also look for improved features, like more conference rooms or a larger cafeteria.
Make sure you’ve calculated not only the costs of the new building, but the costs of the actual move. You’ll need to cover relocating costs, such as renting a truck.
3. Do You Want to Move to a Safer Area?
Perhaps you started out in a certain location because of the cheap costs, but now the area is deteriorating. You might be able to better grow your business and attract new employees by moving somewhere with better conditions. Research the new area’s crime rates, climate, quality of life, health care options, and education opportunities before you sign a lease on your new building.
4. Do You Want to Attract More Customers?
One of the most common reasons for moving your business is to move closer to your target market. For example, imagine that you’re running a family-focused gym. You need to locate in an area near families who have a high enough income to afford a membership.
If you don’t have customers who come to your physical location, relocating may not be as crucial. But relocating can help you if it increases your ability to meet in person with clients and customers. If you’re located in Texas but most of your clients are in Florida, it makes sense to move closer to them. This saves you transportation costs and helps you retain your clients’ business.
5. Do You Want to Save Money?
Perhaps you’re already located in a thriving market location, but your real estate costs are skyrocketing. Consider moving your business to an area where you’ll enjoy lower real estate costs and more tax incentives. If your current office is located in a popular real estate market, you’ll increase revenue by selling your current office building. You can save even more money by choosing to rent your new space.
If you’ve answered “yes” to one or more of these questions, you should start looking into relocating. But don’t make the jump until you’re sure the move will increase, not decrease, profitability.
How Can You Make Relocating Profitable?
If you think it’s time to move your business, consider these ways to make the move more profitable.
1. Do Your Research
Make sure you investigate your new area thoroughly before you make your move. Consider the cost of living in the new area. Make sure that the costs of moving-such as the loss of revenue or employees-don’t outweigh the benefits of your move.
2. Look at Other Options
Are you moving simply because you need more space? You might save money by expanding your current office space instead of moving to a new one. You could also consider moving part of your company to a new space and leaving the other part in the current office.
3. Hire the Right Professionals
Hiring the right professionals can help you save money in ways you might not recognize. Commercial realtors and financial advisers can help you make the best buying or leasing choices. Insurance agents can help you find the most affordable insurance options. Real estate bankers can help you choose the best financing options.
4. Negotiate New Services
Don’t bring all your contracts with you if they’re not the best choice. You might save money by investing in new services for utilities, phone, and internet for your new office.
5. Do the Moving Yourself
Before you sign your new lease, consider how you can cut back on the costs of moving. You can save money by renting a moving truck and letting your employees do most of the moving work.
Owning or managing a growing business can keep you on your toes. Relocating might be the right step to maintain or increase business profitability. Follow these tips if you’re considering relocating your business.