Thinking about moving your small business? If so, there are a couple of things you should be aware of first. Relocating your small business could be a very expensive and overwhelming experience. Besides moving costs, owners have to worry about timing their move just right and adjusting to a new environment. What’s more, failing to carefully plan ahead can have a negative impact on a business’s bottom line through hidden costs. There are a lot of things owners need to know about moving their business before they decide to do it. Here are a few things worth mentioning when it comes to relocating your business.
Disruption In Operation
Downtime is one of the biggest concerns owners will have to deal with when they move their business. When moving, both time and profit are being taken away from your business due to loss of production. If a business takes too long to start making profits after moving, it can spell trouble for the owners. This could especially impact seasonal businesses who could lose their business entirely if they miss out on important sales months. One way to avoid this is by keeping the business in your previous address operational until you’ve fully settled. Business owners are advised to hire professional movers in advance so that they can begin operating their business sooner.
Before moving, businesses must always consider purchasing movers insurance to avoid some of the risks that come with relocating. If you’re hiring a moving company, request coverage options that will protect the items you’re moving. Some movers may not require this but it never hurts to take caution and get it anyway. Be sure to also request to see a moving company’s proof or worker’s compensation insurance for liability reasons. An uninsured moving company could hold your business partially accountable for any work-related injuries their workers might receive. This is an important option to consider even if you decide to rent a truck for yourself.
Moving Your IT System
IT systems can be a hassle to move and reinstall in a new location. IT-related equipment like computers requires extra care when being handled to avoid damage and protect the data inside. Since data is an invaluable asset within an IT system, keeping it safe should be one of your biggest priorities. The best way to keep it safe is to back it up prior to moving your computers. You could use online services like iDrive or switch to cloud-based software that could do this and more. Investing in Cloud-based software could also reduce maintenance costs and receive automatic upgrades much quicker.
Leasing vs Buying
You may be wondering if buying or leasing new space is the right move for your small business. This is one of the most important decisions that business owners must make before they make the big move. Businesses with enough working capital and specific renovation needs can choose to buy space if they’re looking for more security. Buying will eventually help businesses save more on cost over time making it a better long-term option than leasing. Leasing, however, is great for businesses with little working capital and is more affordable at the beginning. Getting out of a lease is also easier to do though monthly payments can be more expensive. A business owner can also choose to personally purchase a property and then lease it to their business. This would allow them to receive extra income and reduce leasing payments every month.
After you’ve made your purchasing decisions, the next step is negotiating a fair price to purchase or lease the new space. To get a favorable buying or leasing agreement, it’s best that you consult with advisors like real estate lawyers. Before you buy, make sure you conduct due diligence to assess the condition of the space you’re planning on acquiring. This means reviewing vendor documents and getting appraisals. If you’re planning on leasing, carefully review all the expenses and responsibilities associated with leasing. Also, allow for time for banks to approve any transactions related to relocating your business to be approved. This could take about a month or so for that to happen.
Staffing New People
Last but not least, when it comes to moving, staffing costs must be heavily taken into consideration before you move. The costs associated with staffing new people include recruitment, onboarding, training and compensation costs. Moving your business could also mean losing old employees who possess extensive knowledge that’s hard to replace. Unless your business isn’t moving very far or is easy to get to with by public transportation, chances are that you might need to hire new people. You must also ask yourself will it be economically possible to expand your workforce at your business’s current income level. If anything, talk to your staff to let them know about any changes in their working arrangements before you move.
These are some of the most important costs that you will encounter if you’re planning on moving your business. Every decision you make concerning your business can come with great risk or reward and some bumps along the way. When it comes to moving, the best thing you can do now is to plan ahead to avoid other issues. Doing so will help make sure that your business is ready when it’s time to move.