Most tycoons say that business is all about location. Whatever path you dare to take, however fast your pace might be, it will all boil down to one vital factor. Business is all about location.
For most entrepreneurs, the economic challenges that the pandemic brought have caused business relocation to continuously become more and more common this year. Whether it’s for upscaling enterprises or salvaging a sinking ship, relocating one’s business operation is starting to become a trend. And it’s a trend that needs serious contemplation and preparation before jumping into.
Here are vital factors to consider when choosing a business relocation site to help you efficiently and effectively plan your move.
COST
Moving and Rebuilding costs
The most basic aspect to consider is the cost you’d have to bear to accomplish the move. If you choose the farthest location from all your options, expect to shell out the highest amount. Consider hiring a moving company that can ensure the safety of your products and equipment with contracts.
Moving a business operated by five people would be cheaper than rebuilding a B2B business in another state. The prices for the services and equipment you’d need for the moving and rebuilding phase of your relocation should be planned meticulously. And you should make sure that the cost won’t bankrupt you before you even get a fresh start.
Taxes and Rent
Taxes change. Different states have different laws that could affect your business for better or worse. Even if the overview of the taxes you have to pay as a business owner starts with federal taxes, each state might have individual deductions and additions to what you have gotten used to paying.
The same idea can be applied to rent. If you plan to move to New York to upscale your country-side business, expect higher rents.
Salary
Just like the change in employment taxes, the amount of salary you’ll be paying your employees might change as well. You have to consider what you’ll prioritize. You can choose convenience and hire locally, choose frugality and outsource online, or choose loyalty. And decide to retain and relocate your original employees. Check the costs for all options and choose what you think is more valuable.
Consider the cost of living in the relocation area as well. It won’t only affect the expected amount of salary but also your expected expenses daily. And no matter how insignificant your daily expenses appear now, after a year or two, it collates, and the gravity escalates. But it would already be too late to change your mind.
GROWTH
Customers and Pricing
Along with the costs comes your profits. By relocating, you’d be submerging your business into a different playground. The consumers might have higher spending ranges and could be more susceptible to buy. A sudden surge in demand might catch you off guard and cause manufacturing or supply problems. Or it could be an opportunity to grow bigger.
The new environment can also affect your pricing. If there are more competitors in that area, then you’d have to adjust to their pricing. The whole business plan must be reevaluated depending on these factors.
Visibility and Marketability
Business location is primarily focused on visibility and marketability. Saying that selling ice in West Africa is more profitable than selling it in Antarctica is an understatement. The main goal is to choose a place where you can capitalize on the foot traffic and environment to increase brand awareness and, eventually, sales.
Make sure you do your market research before your final decision. But don’t forget about your old customers all at once. Make sure you’ve advertised your relocation. Use social media to retain your marketability in your current location and grab marketing opportunities in your future location at the same time.
Flexibility
When choosing a relocation site, the flexibility of the area should also be considered. The eventual growth of your business would rely on how well you can adjust to business trends and unforeseen changes. Much like what happened during the first year of the pandemic, businesses that had more flexibility could survive with few scrapes.
With this in mind, choosing an area that can offer cheaper rentals is ideal for the coming year since Covid19 is most likely not going anywhere. The transition of most businesses to the digital world is slowly becoming inevitable.
Relocating your business operations is not something you can mull over in a week. Your choices can impact your business in all aspects. Make sure you’ve done your research, and don’t forget to ask for help.