One of the most difficult business decisions one can make is whether or not to relocate one’s business. There are many things to be considered when making this decision, and, if you’re indeed determined to make this move, you need to be fully aware of the downsides of undertaking such a venture. However, there are upsides to relocating your company too, which is mostly why are you considering doing it in the first place.
Luckily, we can help you make that decision. In this little article, we’ll present you with some of the most obvious up- and downsides when it comes to relocating your company. Let’s take a look!
Increasing Your Customer Base
One of the most common advantages of relocating a company is gaining access to an increased customer base. Whether the demand for your products/services has dropped in your region, or you’re growing and looking to take advantage of that fact, relocating your company will help increase profits. Overall, your move will not only be beneficial in the financial sense, but it might also give you the exposure you need to continue your growth.
Increasing the Size of Your Office
If you’re growing too fast, one of your priorities will certainly be finding a suitable office for your company and employees. A crowded office is detrimental to productivity, and it might cause your whole production line to grind to a halt. If you’re facing increased demand, moving to a larger office will allow you to accommodate increased production, as well as more employees and equipment to cover your demand.
Relocation Can Save You Money
One of the main reasons companies move to new offices is to save a few bucks in the long run. Whether you’re downsizing or you’ve just found a better deal on a lease, moving into a new office will save you money, money you can then invest in your business and ensure it grows and turns profitable. Buying property in Australia can also be very easy if you’ve got the right team for it, so consider hiring a professional buyer’s agent will ensure you get the best deal possible.
Large Initial Costs
As for the cons of moving your company, one of the first things you’ll need to consider is how much will it cost to actually move. You’ll probably need to move equipment, put down a payment for a new office, or pay for storage, all of which will cost you considerably in the short run. This means that you need to consider if your business can support such a venture and recover from the loss in the long run.
A move will most likely disrupt your production for a while. Whether you’re offering services or selling a product, you’ll probably have to shut down your business while the transition takes place. This means that, apart from the costs of moving, you’ll also not earn any money because your business is not running. Again, you’ll have to consider whether your business can take that hit and survive, and how to avoid downtime when moving if you can, or, at least, minimize it if possible.
It Will Affects Your Family and Employees
Finally, you must consider the human element in all this. How will the move affect your family? Your spouse and your children are likely to drop their jobs, their schools, and friends. Your employees might not be able to relocate with you, and you might lose valuable members of your team. Either way, you might end up losing people, people you’re not willing to let go.
All in all, these are some of the most common considerations you have to make before deciding to move. There are many more considerations to be made, but they’re subjective and industry-specific – these, however, are the basic and most likely pros and cons you’ll be weighing, and they’ll ultimately decide if you undertake the endeavor or not.