Moving a business is one of the toughest decisions an owner must make. The need may arise from resolving uncertainty or another challenge the business faces. As such, you should know all the pitfalls of company relocation and how to avoid them.
There are many benefits of going to a new location. These include getting more office space and more access to larger markets. It also allows your business and employees to escape from a dangerous area.
Moreover, moving will help you get a place that doesn’t have high costs of business. Cutting these costs increases your profit, which you can reinvest in the business. Last, it gives you access to the talented employees in the area.
Despite these benefits, moving can become a nightmare if you don’t handle it well. Keep reading to learn more about the pitfalls you should avoid.
Tips for Avoiding Company Relocation Pitfalls
One of the top tips for business success is to have a plan for everything. That’s even more important when you are considering company relocation. If you do it the wrong way, it could destroy your business and your employees’ livelihood.
Here are five pitfalls you should avoid:
1. Neglecting the Cost
The first pitfall that hurts many companies is the cost of moving. Unexpected expenses can severely affect your cash flow.
Thus, consider the price of hiring movers and paying for insurance. You might also have to pay for changing company details or for new amenities. Last, you may need to pay severance to the employees who won’t move with you.
2. Failing to Consider the Relocation Time
Relocation takes some time to organize and doesn’t happen in a day. Even if you hire movers, it may take a few days, weeks, or a month to complete.
As such, plan for every circumstance while keeping the business running. Consider running both spaces for a while during the transition.
3. Choosing a Bad Location or Space
If your realtor isn’t effective, you might end up getting a bad location for your business. They’ll be disorganized and won’t use their resources well. They might also be poor negotiators, meaning you’ll pay more for the space.
Make sure you hire a top realtor who understands the type of space you need. Moreover, go and inspect the new space before committing to leasing it.
4. Not Preparing for Interrupted Operations
Business relocation should account for production disruption. Ask yourself whether you can shut down some operations without hurting your business. Consider, also, how long it will take before restarting the production process.
Plus, you may need to replace the employees who don’t move with you. Hire new members before moving to cover for the leaving employees.
Think about how your employees will adjust to the new culture. It may affect how they do their work and that can affect your revenue.
5. Poor Communication with Old and Potential Clients
Last, moving doesn’t guarantee potential clients will be flocking to your business. Thus, plan how you will reach out to them and get them as clients. Also, talk to your old clients to see whether they can use your services from a different location.
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As you can see, company relocation can be disastrous if you don’t plan well. It will cost you money, clients, and employees. It could also get you in legal trouble. Even so, the tips above will reduce the stress of moving.
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