Some businesses are in just the right spot from the first time they open their doors. They are conveniently placed for their staff and customers, they have just the right footprint, their utilities and rent are affordable, and their amenities are just right.
For all the rest of the businesses in the world, it is sometimes necessary to consider moving to a new business location.
Moves can help businesses succeed or throw them off their game, but one way or another, companies will absolutely be affected.
Foot Traffic
One of the many reasons businesses move is to improve foot traffic. Traditionally businesses that are located in downtown areas or retail areas are going to have more foot traffic than other businesses. This is great for retail businesses that rely on walk-in customers.
But if a business thought they’d be focused on local customers, but has found that they do much more of their business online, paying the premium rent for a prime downtown location might be too much. Moving farther away from the main thoroughfare may benefit their business.
If a company feels like having more foot traffic would benefit their company brand, however, they may be searching for a space that’s right on a major walkway.
Cost Of Moving
The actual cost of moving from one location to another will obviously affect a business. Depending on how much there is to move, the move itself can be inexpensive or very complex. Be aware that some moving companies can’t transport certain pieces of equipment; always specify that you’re a business and exactly what you need moved when you call local companies for quotes.
According to Art Petrosyan, CEO of E-Z Moving SLC, businesses should also consider moving insurance. After all, dropping your work computer is probably going to be more serious than dropping a box of dishware. Eating off paper plates for a week is one thing; replacing work equipment can cause serious problems for a business.
Overhead Costs
All businesses, even the ones run from your living room couch, have overhead costs. Companies need to decide what percentage of their receipts can go to support overhead costs, and budget accordingly. Some overhead costs could be adjusted by moving locations. Rent is the obvious one, but if a company moves from a place that has a parking lot they are responsible for to a location where parking is centralized and managed differently, that may save a business money in services.
When determining the change in overhead cost after a move, businesses need to make sure to calculate amenities. If they are currently in a building that provides free WiFi and are moving to one where they’ll need to pay for internet access, for example, that cost must be factored in.
Insurance Premiums
When your business relocates, certain parts of your business insurance premiums may change. Your property might be more or less expensive to insure, for example, or changes in the office layout might invite changes to your liability insurance.
There’s no way to tell, in general, what a move might do to your insurance premiums; the best way to make sure you remain properly covered is to contact your insurance agent and go over the details of your potential move with them.
Talent Accessibility
Another reason businesses may consider moving is to have better access to a local talent pool. If a company currently operates well away from any public transport, for example, it is already limiting the potential employees for the company. For a company that just employs a handful of people, that may not be a concern; for a retail company that relies on a sales staff often made up of college students and young adults, that can be a big problem.
For a company that is invested in talent that telecommutes to work, however, having a great internet connection can be the most important piece of choosing a work location. That may be located in an urban center, or it may be easier to access a little bit away from downtown, where there is less competition for signals and competing WiFi networks.
There are many factors that go into determining whether or not your company should relocate. Finances, customer accessibility, talent pools, physical location, actual space, and access issues are just a few. Businesses should carefully consider the costs of their potential move before making any final decisions; ideally, there would be more than one potential location, giving businesses the chance to weight options against each other and make the best choice for themselves, their employees, and their customers.
