Having a business comes with its own sets of challenges and benefits. While being a business owner might sound like the best deal because you get to be your boss, but to figure everything out takes time. That means you need to make choices and decisions that can benefit your business. To be honest, it can be very risky.
Deciding to move is not a light one and involves a lot of processes and expenses. This is why you need to know a lot of stuff before making a move. When making a local move, it might still not be as big when you decide to make an international move because then you have to incorporate the cost of international movers, commercial renting situation, employee transfer or local salaries, etc.
And as the owner of the organization, you might not want to make any decision that endangers the operation of your business.
This is just a little summary of things you might need to consider; let us discuss in detail below what things you need to know before relocation.
Tips to consider before relocating your business
1. Cost of relocation
The cost of relocation should be the first and foremost thing to consider before moving. Suppose you already have a department that does that. In that case, you should probably get the financial forecasting and budgeting done with all the possible expenses that you can encounter.
Our tip to you here is to consider all the primary, secondary, and hidden costs of moving. One thing that majorly impacts the cost analysis is the location of your distance as well. For example, moving to a different neighborhood is cheaper than making an international move. Another thing is the cost of moving employees, consider moving 20 employees versus 4000 employees. Last, consider your overhead costs as well.
2. Impact of relocation on stakeholders
Whether you are running a small business or a large corporation, you need to consider the impact of moving on your investors or stakeholders. Stakeholders are people who invest in your company and have a say at major decision-making points as well.
So you must have a meeting with investors and stakeholders to keep them aware of the situation, so they are on board when you make decisions related to finances or location, etc.
3. Impact of relocation on employees
This is a very important factor to consider when you consider relocating your business. Always keep your employees in the loop and also involve them in the decision-making process. For example, discuss the location of your move, so when you make a move, ensure that employees don’t spend too much time commuting.
Another reason we can give you is that employees hate the fact if they face parking issues. Imagine going to work every single day and not having a place to park. Similarly, many aspects are vital to discuss with your employees to ensure a smooth transition.
4. Tax benefits
Let us just say no one likes giving huge chunks of taxes from their profits, but unfortunately, it’s the law of the land you move into. For example, corporate taxation in Europe is not the same for all countries and you may find that some more expensive than others.
Agree or not, the difference between these tax benefits of your original location to the location you are moving to can have a significant impact on your profit margin and, therefore, your decision process to where you are moving to.
5. Benefits to customers
Another most important question you need to ask yourself as a business owner is how beneficial it would be for your customer if you make the move. Will you be targeting a new audience? Do you have a lot of competition there? Is the product you are selling very much in demand in the area you are moving to?
Similarly, there are many questions you need to address to make sure that you have a customer base that can only positively benefit your business. A lot of companies are given tax credits in certain states and countries as well. So you might want to look at the tax policies of the town you are moving into
6. Business growth and opportunity
When making a move, you need to not only consider the short-term benefits of moving your business to a different location, but you also need to make sure that your business can sustain profits and also have opportunities for growth in the new place you are relocating to.
So let us say that maybe there is a chance that your business is going to expand by three times more in the next few years, which would mean that you would need to increase the size of your employees as well, so make sure you have assets to make sure that you have enough growth opportunities.
7. Impact on community
Last but not least, before making the move, you need to consider the impact of the community of your business move as well. If you are wondering what this means? This, in short, means that you need to make sure that your business is in line with the particular place, business ethical responsibility towards the community to make sure you are doing everything right?
Going through the community guidebook will help you understand that you are not impacting the community in any way negatively and making enemies.
Now you are ready to move
Now that you have gone through our list of tips and tricks you need to consider before moving, you are ready to roll. So have a feasibility report prepared months before and do your research to analyze the cost of moving, impact on stakeholders and employees, Impact on community, tax benefits, benefits to the customers, any additional benefits of business opportunity and growth. Last but not least, don’t forget to consider the impact of the move of the community you are moving into.
Shoaib provides ghostwriting and copywriting services. His educational background in the technical field and business studies helps him in tackling topics ranging from career and business productivity to web development and digital marketing. He occasionally writes articles for asia relocation.