The geographical location of a business affects the general output of the business.
Ease of access and general visibility of a business’s premises make it easier to attract customers and grow sales.
There are occasions when you may want to relocate your business. Maybe the current space is not enough since the business has expanded.
Maybe the competition is high and you have identified a less competitive location with just as much potential. Or the lease just expired and for reasons beyond your control, it cannot be renewed.
There are many reasons why you may want to relocate your business. Relocating can impact your business both positively and negatively if not well-planned. However, there are some factors that you should consider before doing so.
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Inform your customers and other stakeholders
Notifying your customers about the movement prior creates the benefits of retaining the customers.
Existing customers are a huge part of the business and they should be mentally prepared for the impending relocation. It will also make it easy for them to reach you after the relocation.
Of course, some customers may not follow you to your new location but there is a probability that a majority would.
You may want to let other business stakeholders know that you are moving. Inform employees, clients, suppliers, and other stakeholders about the relocation plans well in advance to minimize disruption. The communication will also make it easy for the transition.
Conduct thorough research on the new location
Different locations may have different market trends, customer demographics, competition, business regulations, and resources.
Proper research will also enhance your decision by comparing the pros and cons of the relocation.
When you identify all these trends and learn how to work through them, your business can adapt well to the new location.
Additionally, ensure compliance with all legal and regulatory requirements for operating a business in the new location.
Check on the requirements including the permits, licenses, zoning regulations, and tax obligations to mitigate potential legal conflicts or penalties.
Review your business plan
Develop a comprehensive business plan outlining your goals, strategies, budget, and timeline for the relocation.
Review your business plan to clarify your objectives for the relocation, business goals, and strategies for achieving them.
Keep in mind the budget for the relocation, potential financing options, and any necessary adjustments to your business model.
A clear plan serves as a roadmap for relocation and helps ensure that you stay on track toward your goals.
The plan also helps in outlining a well-researched marketing strategy to promote your business in the new location through such strategies as; localized advertising, networking, branding and awareness campaigns.
Assess the total cost
Relocating is likely to cost money. In the process of thinking about relocating, access the possible cost and budget for the business relocation.
The cost can include moving expenses, lease, renovation, set-up costs, and any potential impact on the cash flow.
Plan the logistics for moving equipment, inventory, and other assets to the new location. Go through the inventories and adjust according to your budget while also ensuring minimal relocation time. This will ensure minimal disruption to the daily business operations.
Employee considerations
When your business is fully dependent on employees, then you should consider the effect that this relocation will have on them.
Some employees may not be able to relocate probably due to commuting expenses or personal reasons. This may force you to plan for recruitment of replacements.
For those moving with you to the new location, consider potential relocation assistance or incentives, and any necessary adjustments to employment contracts or benefits.
Infrastructure accessibility and utilities
Is the new place easily accessible? How easily can you direct a customer who did not get the notice on time? Better infrastructure and utility services can help reduce some of these frustrations.
Arrange for essential services such as internet connectivity, phone lines, utilities, and other requirements at the new location.
Having these essential services will help minimize downtime and ensure that your business can continue operating smoothly in its new location.
Evaluate risks and contingency plans
Identify potential risks and challenges associated with the relocation and develop contingency plans to mitigate them, such as backup suppliers, alternative locations, or financial reserves.
Some of the risks that one may encounter during business relocation can include challenges with keeping the business running. Other risks may also be unforeseen challenges that may affect the business later after moving in.
Access the impact of the delays in construction or renovation in case you are moving to buildings not completely done. You may also find difficulties in hiring new employees and dealing with unexpected market shifts.
When you come up with a good contingency plan, you can create alternative solutions to these risks. You may communicate with all your stakeholders about withholding services for a while. This can minimize the impact of the risks during the relocation.
In conclusion, business relocation comes with various risks that need to be well mitigated before the actual relocation.
After all, business relocation should always be geared towards maximizing sales and growing the business.
