Lots of business owners at some point or other need to address the decision whether to move premises or not. There may be many factors that contribute towards this, but often moving is usually the only way to solve a particular problem.
But before you decide to move, there are lots of aspects that need to be weighed up to ensure that the move is a profitable and successful one – with timing being a key element.
Here’s all you need to know.
1. Why you might move premises ?
A business may decide to move because its current premises no longer fulfil its requirements, whether there isn’t enough space for staff or resources. The premises may have outdated facilities, which are impacting on business profitability. You might be looking to lower your costs by moving to a cheaper location. Or moving to a location that is easier to attract new personnel and customers.
There are lots of reasons for wanting to move, but because it is such a costly and risky business, you should never consider moving just because you want to. Timing is also crucial in the moving process, because the wrong timing can cause a business to go under.
2. Why timing is so important ?
Because we live in a changing economic environment, the conditions for moving business premises may change too. Whilst one day it might seem like a favorable thing to do to expand the business, at another time it could be catastrophic.
That’s why it’s of vital importance that any business does a full assessment of the reasons for moving and analyses the environment, competition, markets, staff requirements, company goals, etc before putting the wheels in motion to move.
Because of the costs involved, one of the first key questions you should ask yourself is if the business premises could be reorganized in such a way to make it more efficient, which might actually mean a move isn’t necessary.
3. It has to be done at once ?
Do you need all of your equipment or can you transfer it digitally, freeing up space? Is it possible for some staff to work remotely, thus reducing the need for extra office space? Can you add to your existing space, or are there any neighboring businesses that are empty that you could take over?
You may decide to move because you want to take on more staff and there is a lack of available workforce in your area. Bear in mind that in an economic downturn, many people are willing to travel or relocate to find work, so don’t consider moving during a recession.
Some businesses decide to change location to be nearer to their customers, or to attract new customers. Whilst this is a valid reason, don’t base your move on the reliance of one client or customer, as they might decide to take their business elsewhere at some point in the future. Certainly, if your business market is looking unstable or may change, then don’t move yet.
4. What type of business you are running ?
A lot will also depend on the type of business operation that you run. Location isn’t so much of a factor if you don’t have customers visiting your premises; you could opt for a cheaper rent in a less desirable location.
But, if you do have customers visiting your building and you want to impress, then you may find that moving to a prestigious address can enhance your reputation. Whatever, the reason, it’s always worth weighing up the perceived benefits from moving against the costs that are involved.
Some businesses, such as a successful restaurant, might want to expand by retaining the existing premises but opening a new shop elsewhere. Location is vital for this, as you’ll want to attract the same sort of clientele.