Every entrepreneur wants what is best for their business. When the other side of the fence looks greener, a change of place can be crucial for business growth. However, business relocation is a decision that should never be taken lightly. Many businesses move to a new place to find better odds for success than what they had in their previous location. However, when exactly is a business relocation beneficial?
Having a thorough research and market study helps you determine the right time to relocate your business. Moving to another place could mean reaching better proximity to your target customers and access to a broader pool of talent. If it is critical for the success of your company, then a business relocation is a risk worth taking.
Cost of real estate, workforce and labour issues, the desire to reach new markets, facility and equipment upgrade, and quality of life are some of the factors that contribute to a company’s decision to move. Depending on your company’s needs, certain concerns may be more significant than others. However, many reasons for relocation is just about a combination of these factors.
- Cost of Real Estate – Real estate cost is a concern that can make or break many businesses. This usually happens when the business expenses go out of control. Relocating to a city that offers lucrative tax breaks and incentives can be profitable to your business. Many cities in Canada provide relocation and expansion incentives to attract more businesses to boost the economy of their community. However, high real estate cost may not be enough to drive a company to relocate to another city. Business owners should also take into consideration their access to a pool of talents in the area.
- Workforce and Labour – Entrepreneurs require a pool of workers with technical skills and experience to help them run their business. When your current location has a shortage of qualified workers, and advertisement on job websites failed to attract potential employees, then it is time to consider relocation as an option. Moving your company to a location near higher education facilities gives you access to a pool of college graduates.
- Facility and Equipment Upgrade – Another reason to consider relocation is if your current facilities are undersized or utilize outmoded equipment. As your business grows, you will require larger quarters with the latest equipment and technology. At this point, many business owners have two viable options: construct a bigger facility or move to another city. However, many businesses do not have enough capital and resources to build a bigger facility and invest in upgraded systems. Relocating is often an easier and more cost-effective option.
- Market Access – Your market access should be large enough to support your business. However, if your advertising and branding efforts failed to attract your target customers, the market you are currently in may not be sophisticated enough to keep your business running. When choosing a new location, make sure that the demographics will support your growth.
- Quality of Life – This can be considered as an intangible issue when it comes to relocating your company. Business owners need to evaluate certain factors before moving to a new location. This includes a low crime rate, healthcare services, climate, education facilities, cultural environment, recreational opportunities, and lower cost of living. Deteriorating cities often lose businesses because many companies relocate to cities that offer an improved quality of life. A city that provides a better quality of life is significant for the success of the business because it allows companies to recruit top-quality employees easily.
Things to Consider Before Relocating Your Company
The primary reason why many companies relocate is expansion. Over time, the space you needed when you started your business is completely different from what your company needs to expand its wings.
Moving your company to another city can be exciting, yet nerve-racking. You may require some to adjust. Since most business relocation is a complex process, it does not hurt to be prepared and make sure that everything on the list is checked off.
- Overhead Cost – When planning for relocation, it is essential to consider the combined costs of your proposed space. Comparing overhead expenses (e.g. utilities, snow removal, easy access to public transportation, flooding possibilities) as well as the cost of buying or renting the property helps you fully compare options. A new location may have a higher rental cost but also conveys a better economic status.
- Accessibility – Whether you found the perfect location on the main street or in a modern high-tech building, it is equally essential to check its ease of access. If the doorway of the building is too narrow or the stairs are too high, customers and employees may be prevented from easily entering and exiting the building. Address these concerns to the building owner before signing a lease. The building should meet the requirements set in the building codes and regulations in Canada.
- Expandability – If you are planning to expand your business, you need to find another facility that has the right size for your expansion. However, growing your business requires a balance between fitting your budget for the new facility and adapting to meet future needs. Constantly relocating may not be beneficial for both your employees or customers. Talk to a local business expert for some suggestions about how to determine the right-sized space for your needs and your future.
- Technology – Does your new facility wifi-ready? Is the current wiring system able to support your physical data or server room? Old buildings usually do not have enough data- or phone lines in place for your needs. Talk to the landlord about your tech needs and what available solutions he can offer. If no viable solution is provided, you may need to find another space.
- Reliable Movers – Another critical thing to consider before relocating your business is choosing a trusted moving company. Do they have quality packing supplies? Do they have highly trained and experienced personnel to move heavy equipment and machines? Having all the answers to these questions helps you choose the right moving company.
Business relocation is not an easy process, but it does not have to be challenging either. By keeping these important notes in mind, you will be surprised that the big move is over before you even know it.
Ready Machinery Movers is a top machinery-moving company that offers a wide range of relocation services in Toronto and nearby areas since 1982. Our services include transportation, storage, staging, and installation of heavy machinery. Call us now at 1-800-211-2500 to request a quote.