Pluses and Minuses of Office Relocation
Is your business outgrowing the space that you occupy now – or conversely, is your office too large for your needs? Has your present work set up become awkward and inefficient? Perhaps the monthly rent and other costs of doing business have turned out to be unfeasible in your office’s current location. Any of these signs means that it is time to look at the possibility of office relocation and explore the pluses and minuses associated with such a transition. This will enable you to decide whether moving your office will be the change you need to increase your business’s profitability.
Relocating your office may be desirable in that it will allow you to upgrade to more attractive and modern facilities that will be both more convenient for your operation and more appealing to your clientele, thus helping to promote your brand. In addition, your company can decrease its operating costs through reduced rent, economic development incentives for moving to a certain municipality or state and lower taxes and utility charges. Labor costs might also be lower in your new geographic area. Alternatively, relocation may offer your enterprise improved access to a specialized pool of labor, which is particularly suited to your field of endeavor.
You may risk losing employees who do not wish to move to the area of the new office, as well as loyal, long standing customers in your old location. The physical office relocation will entail substantial costs — the actual moving expenses, possible penalties for breaking an existing lease, the disruption of your service to clients, and the time and effort involved in planning and carrying out a move. All of these should be carefully calculated before you commit yourself to any relocation plan. In addition, bear in mind that you will be dealing with a new group of suppliers and complying with new regulations.
Advance research and planning are key to the success or failure of any new endeavor in the business world. In the case of a potential office relocation, careful research must be performed to determine whether moving is the best alternative, as compared with reorganizing your present office for greater efficiency. If a move is indeed desirable, a variety of suitable new locations should be investigated. You will need to accurately calculate the total costs of the move and the expected employee attrition rate, and weigh those against the long term gains. Cost benefit analysis must be done to weigh the advantages against the risks and expenses of moving. The move itself must be planned carefully to minimize disruption. Perhaps most importantly, you should inform your employees of the impending relocation in a reassuring way.