In the modern era, contemporary technology has made relocation much faster and efficient. Therefore, if you are to moving a 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
Pros:
- 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.
Cons:
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.
Summary
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.
