Are You Relocating Your Business? Here are Seven Important Factors to Consider

If you’ve made the decision that it’s time to relocate your business, you will want to consider how your new business location can impact your bottom line. Choosing a new business location is a big decision, which is why you should carefully consider these important factors:

1. Growth

You’ll need to consider growth in a variety of ways. First, will your business be able to grow and thrive in the new location? If you’re not moving far from your original location, you may not feel much of an impact from the move, unless space was holding you back. You’ll also want to consider the economy of the new location — is it stagnant or growing? If so, by how much? And finally, you’ll need to consider taxes.

2. Taxes

Moving out of state or to a new county? Consider the different tax rates that affect businesses, such as income tax, rental tax, and even sales tax. You’ll want to evaluate how this will affect your budget so you can plan ahead for extra expenses or how much of a gain your business will see from a tax break.

3. Market Research + Competition

When you move your business to a new location, chances are that you are going to be engaging an entirely new market. Conduct market research to determine if your target market is in fact in the location you are considering for your business. It’s also important to see how much and what kind of competition you may face before relocating your business.

4. Employee Considerations

Will your employees follow you to your new business location? If you’re moving out of state, that’s going to be a tough sell, unless you are willing to pay for valuable employees to relocate. It’s imperative that you consider how your workforce will change so you can be prepared and react accordingly. It’s also a smart idea to gauge the talent pool in the new location and start seeking out new employees before you make the move.

5. Connections

Although you can move to a new business location without having any connections, it certainly helps to go into it with some pre-existing connections. They can provide recommendations for service providers, vendors, and more. Having people you can count on to help you navigate the new space will be helpful and it can help on a personal level.

6. Company Culture

If you’re moving to a new region or you are moving your business out of state, you will want to carefully consider how the new location will impact your current and future employees. Will you have the same attitudes toward work? Will you be able to work the same way or will you need to adjust? How will the environment around you impact your company culture? These are questions you will need to ask and answer before deciding to relocate your business.

7. Expenses

Before committing to the move, you’ll want to create a budget and see if it’s feasible to stay within it. Remember, you won’t just have to pay for a different lease, you will likely be dealing with different service providers and potentially different taxing bodies. Additionally, you’ll need to pay for additional marketing to publicize the new business location. And all of that doesn’t include the cost of finding and hiring new talent or the physical move itself — along with potential losses that may happen when the move initially occurs.

Overall, there are a lot of things to consider when you’re relocating your business. Hopefully, these tips will help you better evaluate when and where you move. If you have other questions, the EDC is here to help!