Are you considering a new location for your business? Whether you’re expanding from a flagship retail store or setting up a new office space, there are some key risks to assess before taking the plunge into a new direction. While many businesses relocate seamlessly, with little or no disruption, there are some important pros and cons to review before taking the first step.
Underestimating the cost of relocation
If your business is virtually based and doesn’t require the equipment and furniture a brick-and-mortar location demands, you may find moving easy. Though, it’s critical to acknowledge that the convenience of a remote workforce isn’t widely available to retail services and shops with a significant volume of inventory. In these cases, the cost of storing and then moving your company’s inventory and assets will require careful planning during a relocation initiative.
As the saying goes in the business world, time is money. Therefore, coordinating an inventory transfer from shop to shop will monopolize precious hours in your day and room in your operational costs budget. If moving costs are underestimated, this can significantly impact your small business, as other expenses may similarly exceed the budget.
Business disruption
While some businesses can move within a day or two, others may need a week or longer to relocate and reopen the entire operation entirely. If your company needs to close for one day, this may not impact your sales or business, though a week or longer may have a longer-lasting effect and should be planned for accordingly.
To dodge relocation-related disasters, you may want to promote online services and products if you anticipate significant disruption during the relocation phase. By allocating time and resources to your online products and services, you can accommodate customers’ needs even amidst the chaos of a full-scale relocation.
Additionally, streamlining the relocation process is a must in sidestepping business disruption. Start by appointing a relocation manager. From there, it’s time to book utility services in advance, hire removalists, and make arrangements for fleet transportation services with auto shipping companies like these. With a closer eye on ways to streamline an office relocation, you can minimize negative financial impacts.
Failing to conduct location research
Is the new location setting your business up for success? Ultimately, your new location should render increased traffic and visibility to the public. That way, you can reach and accommodate a broader audience of clients and contacts. It’s worth noting that some locations are less inexpensive and can save a company significantly over time.
On the other hand, sliding location research to the backburner can lead to a loss in visibility, especially if business owners fail to invest in advertising or promotional invitations to visit the new shop or office. For example, a storefront moving from a shopping mall to a more industrial area may save the company, resulting in an inexpensive lease, but it’s less likely to be noticed.
Taking measures to carefully research and consider the possible pros and cons of a new spot can help alleviate potential losses in the future.
Not promoting the new location
A top priority should be to inform your customers and contacts that you’re moving locations, so they can follow up once you’re settled into a new office or retail space. Many small businesses will send postcards or a friendly email reminder of an upcoming relocation within a week or two before the relocation commences.
Additionally, it’s in your best interest to plan a promotional event, which will encourage loyal customers to visit the new location soon after reopening. To sweeten the deal, offer discounts or other deals to customers who drop by the new site within the first week.
Overlooking staff commuting times
If employees and clients need to travel or commute a long distance, this can be a deterrent in some cases. Some businesses offer remote working options, which may help in the short term, or longer. If remote work isn’t an option, it’s essential to consider how employees adjust to a new location, travel route, and commuting times and how these changes will impact productivity.
Failing to communicate in advance
Contractors, business partners, and other stakeholders will need to have advance notice of your business’s new location. Without advance communication that’s clear and concise, clients and associates may not drive to the correct office or store. While sending a flyer or postcard may help notify clients or potential customers, it’s essential to communicate on a more personal, direct level with regular clients and partners with whom you work regularly.
Glossing over the business success rate of a particular region
Is your new location a bustling urban center with lots of competition or a smaller area with less traffic? Every location has its advantages and disadvantages, though researching ahead to determine whether moving is a worthwhile investment includes determining if a specific area will be receptive to what your company has to offer.
Researching a new area is especially crucial if you’re unfamiliar with the city or town where you plan to relocate your retail space or office.
Summary
Before you go and decide to open a new company location, consider less expensive options and solutions that may prove more effective. While some moves are necessary due to renovations or building changes in your current space, it’s vital to do the research and understand whether your company will benefit from one location or office space over another.
