In the modern era, contemporary technology has made relocation much faster and efficient. Therefore, if you are to move your business to a new locality, it is important to envisage the success or failure of the decision. The corporates believe that a business move is no less than a marriage or a war ─ in both the situations comprehensive planning is pivotal to execution.
Business Relocation: Pros and Cons
- In a challenging situation where your business is not doing as expected, maybe because of its location, moving the business to an entirely new space is likely to be a gamechanger.
- A change in location can help your business to explore new markets.
- Upgrading to a better facility with modern amenities can increase the overall productivity of your workforce.
- Relocation might sometimes help in reducing the business overhead expenses.
- Moving can help in downsizing your business thereby producing more functioning capital.
It is rightly said that every story has two sides, and similar is the case with moving your business.
- Moving a business is a risk as you might lose your regular clients due to a change in place.
- It is possible that the actual moving cost comes out to be higher than your estimated cost.
- Overseas business relocation may result into change in shipping time and the degree of control on key factors such as raw material delivery and quality assurance.
- If the aim of moving your business is downsizing, then the effects could be fatal. Downsizing might decrease the morale of employees thereby decreasing their productivity.
Consequently, moving a business would be an intelligent option only when you have a proper understanding of the influences that relocation might have on your business directly or indirectly.
Moving a business requires tremendous amount of time, money, and patience. Although it may hold opportunities for your business to flourish, it also has equal opportunities to be a downtrodden deal. Therefore, keep your calculations accurate during business relocation, for factors such as the cost of the move, overheads, customer’s/vendor’s location & accessibility, etc.