Relocating a business isn't something that is done lightly. It's a huge strategic move that can make or break your company. This is why so many Australian businesses put extra emphasis and effort into having it go off without a hitch. A bad move can set your business back thousands of dollars and keep it in the red until you move again. Before making a big decision, there are a few factors that you have to consider.
The cost of relocating
Before you get into any other details, you have to take a look at the total cost of relocation. Moving your entire business isn't going to be cheap. Even the soundest, most reasonable moving decision is going to cost you enormous sums of money. This is because you're not just moving the idea of your business or your headquarters, you're moving absolutely everything to your new spot.
This includes moving physical assets which are essential to the business's function. They can get pretty heavy if you're dealing with machinery or important technology. Next up, you have your employees. They're not just going to pack up and leave their lives to start working somewhere else without some incentive. Helping them move would be your best bet, and it's a move that would help retain top talent.
The overhead costs of your new place need to be considered. Everything from the rent to the utilities needs to be paid off, and that will take the cash that you'll be short on during moves. The longer the distance, the more complications you'll encounter, but you should be able to handle it with some thorough planning.
Customer demographic changes
There's no asset more valuable than a good customer base. The people that enjoy your products and are repeat customers are the lifeline of your business. They're the main reason the company is able to run in the first place. If your business often relies on local customer traffic, moving can shake things up a bit. Getting away from your usual consumer base is going to affect your business's profits, at least until you establish yourself in a new location.
Often, the costs of doing business will rise due to the sudden change in location. Since businesses often move to more populous areas in big cities, rent tends to jump dramatically. This could lead to an increase in costs for products and services. It could also end up being cheaper if you're located close to important clients and customers. Perhaps delivery times are lower, or production costs have gone down in the new location. Either way, you're going to see some form of change.
Moving logistics
Moving isn't just about the costs and potential profits, you have to consider whether it's even possible to move out of your current location. Moving a business is a lot more stressful than moving any individual part of an office or any single employee. You have to organize thousands of physical transfers that will not only cost you significantly, but they will also be a nightmare to realize.
Australian business owners often rely on complex systems that are already in place in order to make their business relocations a lot simpler. You can't expect regular movers to transfer tons of company materials and assets. The costs would be astronomical and you could never coordinate them right on time. Larger moves require some more advanced logistics. When moving overseas, businesses have to employ reliable freight companies in Australia to make these relocations happen. With the help of some heavy transporting machinery, you can easily get your materials overseas without bankrupting your business.
Growth potential
Despite all the difficulties that come with relocating, they are often well worth the trouble for many businesses. If the current location of the company doesn't allow it any growth, you can be sure that it's only going to stagnate and lose profits in the long run. This is why relocation can be seen as an investment in the business's future.
With every relocation, you need to thoroughly evaluate the destination. Does it provide your business with growth potential? If so, does this potential come from a wider consumer base or does it have something to do with production? Whatever the reason, knowing this well in advance is crucial if you want the business to succeed. You can't just pick up and move to Sydney without seeing if there's a viable environment for your business first.
Consider every aspect of the new location. If there's a rich labour pool that would support growth, can the consumer demographics also support it? An excess of materials would be great, so long as you can find the right employees to work for your company. All of these things are very important for the success of your business, even if you might not have noted them in your previous location. If there's a shortage of anything, you'll quickly notice it affecting your bottom line.
Conclusion
Relocation is something a lot of businesses have to go through to achieve success. When the old location isn't showing any more potential, it's time to pack up and leave for greener pastures. It's a lot harder for a business to relocate compared to a single person, but it's also a move that can drastically improve your chances of seeing better results. As long as you remember to analyze your situation and new location, you'll find it a lot easier to relocate your business without any doubts or stress.
Guest Author
Nick Brown is a blogger and a marketing expert currently engaged on projects for Media Gurus, an Australian business, and marketing resource. He is an aspiring street artist and does Audio/Video editing as a hobby.