Your business is expanding and growing, and you are faced with the difficult decision of relocating. You are not sure how you will make this move and shifting your business to a new location seems daunting.
When you first start your business in a specific place, it is because of circumstances. These circumstances may change as your business gathers pace. You may want to move to a bigger city or a place where you feel your business will get more exposure.
These decisions are often thrown upon us and made in haste. It is important to consider all of the factors before making a big decision to move. If you can prepare and plan this relocation, it will benefit you and your business.
Below are the five most important considerations when planning a relocation for your business:
1. Network Support in New Location
At number one is network support. Why, you ask? Well, the most important thing to consider when moving to a new location is your support system. Or in business terms, your network of professional and personal contacts that will help to cement your new business in your new home.
It cannot be underestimated. When we are looking for a new job, the first thing we do is turn to our network. The same goes when trying to relocate your business.
Do not move to a new location, thinking things will just work out. You need to plan it out.
Who in your network knows important connections in this new location? Who in your network can introduce you to potential new clients? You need to tap into this support system to lay a strong foundation for your business. Word of mouth and reference will be the most important leads when you are starting in a new place.
2. Cost of Doing Business and Living in a New Location
Have you considered the cost of living in this new location? Have you sat down and calculated it out? Do you know what the difference in business activity cost will be in this location? If you have answered no, to any of these questions, you are not prepared to move.
One of the biggest mistakes businesses make when moving is not planning for unexpected costs.
Your new building might have higher rent and utilities. Moving costs associated with relocating will be something that you will need to consider before moving. Your business will be closed for some time while you are moving. This cost has to be factored in as well.
Your own cost of living might increase as you move to a bigger city. Have you considered that?
So planning for these costs will ensure that you will be prepared when moving.
3. Consider Remote Work vs. Relocation
One of the mistakes businesses often make when deciding to move is not considering a remote setup. Have you strategized other arrangements for your business that could still give you the same benefits without the cost of a big move?
Some possibilities to consider are:
- Commuting to your new location every once in a while- Do you need to pick up and move the entire office location to a different city? Can you arrange a commute that will allow you to set up a sub-office in the new location that you can visit for a few days a week while not moving the whole office?
- Hiring remote talent- Can you hire remote staff that can work from anywhere? If yes, then physically moving might not be necessary at all. Obviously, this decision may only be possible for those that are in the service industry.
- If your relocation is because of office space, consider hot-desking and desk hoteling, which is a great way to manage workspaces in an efficient manner while still maintaining social distancing.
4. Employee Cultural Differences in New Location
If you are moving your business to a different country, then this point may especially apply to you. But even if you are moving within the same country, you can expect different employee preferences in different cities.
For your staff members, organizational culture is very important. But the way things are done in a certain location can also affect how you manage your staff. For example, in the new location, lunch breaks and communication among staff members may be done differently. Office dress attire is also something that can be completely different in a new location.
For international relocation, there are language and cultural differences that must be taken into consideration. Organizational culture and communication may need to be emphasized when setting up and training new staff in a new country.
5. The Importance of Market Research
Before moving to a new location, extensive market research is necessary. Without knowing what the market is for your new location, you will not be able to adapt to it.
When doing market research, consider:
- Are you currently dominating your present market or not? If you are, then that is a good reason to move, but if you are not, then you may want to reconsider moving. You should first try to dominate the market you are working out of.
- Study the demographics of the new location to make sure that it is suitable for your business to be based out of that area.
- You can also study the sales cycle of your current location, which will help you determine how long it will take to establish strong sales after you relocate.
Things to Consider before Relocating
In conclusion, we can say that before taking the big decision of moving to a new location, it is important to consider the issues listed above.
You do not want to relocate only to find you need to move again because your new location did not work out for you. This will cost you time and money.
It is better to make the right decision the first time!