5 Reasons for Moving Your Business
Updated: Apr 22, 2019
Make the decision to move your business is not simple. GO/office compiled the 5 most common reasons companies decide to relocate.
1. The desire to reach new markets
When you move or expand to a new location, the odds are stacked in your favor. Especially if you have poor traffic and know that's the problem, you look for a new location that has good traffic.
When a city’s economy is struggling it’s much more difficult for most businesses to prosper, especially if they are dependent on the local market for revenue.
2. The need to upgrade facilities or equipment
Most businesses start in a small facility, such as the founder's garage, and then move to bigger quarters in the same city. The business outgrows that location or begins to find fault with its facilities, services, utilities, infrastructure or other features.
It's important to decide what equipment, fixtures, records and other items to actually move. It might be better to dispose of inventory at fire-sale prices rather than pay to haul it across the country.
3. The desire to lower costs or increase cash flow
The cost of living varies widely among cities. Companies often find themselves forced to compromise between staying close to target markets and choosing the lowest-cost facility. Also, companies may be able to tap a cash flow windfall by selling a building or land that has appreciated in value, then purchasing or renting lower-cost space.
4. Considerations about quality of life
Companies evaluating relocation often look at recreational opportunities, education facilities, crime rates, health care, climate and other factors when evaluating a city's quality of life.
5. The need for a suitable work force
The company may have a shortage of qualified workers for some occupations, especially those requiring technical expertise. For firms that need specialized employees, it may be well worth it to relocate to an area where you can easily find these kinds of individuals.
Almost all moves can be attributed to some combination of these issues.