If you’re a business owner thinking of changing the location of your office or opening a branch, the following common reasons to relocate a business can help you make a better-informed decision. At the very least, you will see your situation is not unlike many others.
No business exists in a vacuum, and keeping up with the competition requires sometimes considering making a change in business location. While unique details drive every business decision, the following offers some common reasons to consider moving a business.
A great example of this in recent years is the migration of businesses around the country to Florida, where low taxes, high quality of life, and a pro-business environment are attracting businesses at a higher rate (it’s also a popular place to start a business). A better situation for a business can immediately lower costs and improve the bottom line.
Some businesses want to move closer to their major clients, rather than spending time on the road to visit them or relying on Zoom meetings to communicate. It’s a smart business strategy to remain close to your best clients – among other things, in-person meetings will help keep them from considering your competitors. It also saves on travel costs.
Successful businesses eventually look to expand into new markets. This is especially true for retailers and restaurants, but it also applies to industries such as professional service companies, healthcare operations, and personal services. The fastest way to make operations more profitable is to expand into a lucrative market.
If a business rents space for its headquarters, then they will always want to consider what better deal they can find on the market when their current lease expires. Relocation is worthwhile if a business can get a better deal. Also, companies often need to upgrade to accommodate growth and expansion or to find a more modernized facility.
As mentioned above, a more business-friendly government can provide a good reason to relocate. Another related factor is finding a location that lowers costs for other reasons. For example, a new office might reduce long commutes for business executives, lowering their personal costs. It might also put you closer to less expensive suppliers, cutting business costs. In some cases, a move from the city to the suburbs or a satellite can significantly lower costs.
Businesses sometimes want to move to areas where there’s a deeper talent pool for potential employees. While this most often is mentioned for tech companies, it’s something that occurs in all industries. Hiring and retaining talented employees is one of the most important things a business can do to improve profits. Relocating to a talent-rich area can help accomplish that goal.
If the benefits of making a move outweigh the costs, smart business leaders will relocate without hesitation. Once the decision is made, however, it’s important to avoid common business move mistakes and plan out your move in detail.