You have made the decision to relocate or expand your business to a new location. By this point, you have also no doubt given tremendous thought to the price tag associated with your move.
However, the act of moving is notorious for mushrooming into a far bigger ordeal than originally estimated. Additionally, while obvious costs can arise via moving-related expenditures, surprise costs can materialize through decreased production levels.
While it may not be possible to plan for every single expense, thoughtful preparation can help you avoid getting blindsided by charges that seemingly come out of nowhere.
Whether you own a fledgling startup or a 200-person operation, strategic planning should always set the stage for your subsequent actions.
While parameters vary greatly from company to company, core relocation issues still underscore the complexities of a corporate relocation.
Before you jump feet-first into your relocation or expansion project, make sure you have given plenty of attention to these factors that can dramatically impact your bottom line.
When a move is imminent, over-planning is not possible. In other words, the more planning you do, the better. Start early in the process and allow a sizeable timeframe to get all your ducks in a row. Industry experts recommend a minimum of a 9-month lead time, but preferably longer. Poor planning can result in financial losses from which recovery is difficult
Consider delegating tasks or assigning a project manager with important responsibilities for the move. This might encompass contacting moving companies for bids, connecting with landlords and builders, or working with vendors and service providers.
3. Evaluate costs
Beyond looking for new real estate options to lease or purchase, it is also necessary to consider what must be done in any facility you might be vacating. Evaluate the costs of required repairs or any early lease termination fees or penalties.
4. Identify needs
Determine if the facility you are moving to is ideal as is or if it will need upgrades or renovations to meet your company’s specific needs.
Research relocation service providers to decide if you want to tackle the move on your own or if you want to hire an expert. You might also consider outsourcing certain portions of your facility move to a third party if hiring a relocation specialist for the whole project isn’t feasible. Remember that packing materials such as boxes and tape will factor into the price of moving above and beyond simple transportation. Also, bear in mind that if you choose to take on the relocation yourself, the safety of all your equipment will be your responsibility.
6. Analyze assets
Take inventory of the facility assets you have. What can stay, what should go, and what must be purchased?
7. Communicate with employees
When it comes to personnel, understand that your employees will likely be consumed by your company’s relocation for a variety of reasons. This can lead to anxious employees, negative office chatter, and diminished productivity. Be proactive in keeping the lines of communication open which should, in turn, help your operations remain functional throughout the transition.
8. Consider your staff
Make smart decisions regarding your staff. Will you be using relocation packages to relocate employees and families? Will you be starting fresh with new employees who will then likely require training and time to get up to speed? How will you handle relocating current employees who are also homeowners? While it may cost somewhat more to relocate existing employees, sometimes that is a better option in the long run.
9. Evaluate cost differences
Analyze any costs that might be incurred due to existing or proposed regulatory differences between your current location and a new location, especially for out-of-state moves.
10. Additional charges
Beyond labor costs and real estate prices, it is also important to consider how the costs of utilities, taxes, insurance, logistical challenges and more might play into the big-picture price tag of your company’s move.
Without a doubt, corporate relocation is a daunting task for a variety of reasons – from the sheer dollar signs and logistical challenges to personnel issues and more. Do extensive research to determine which is the best option: moving or staying put and expanding.
Moving is inherently a risky decision, but if done conscientiously, it can prove to be a financially and strategically rewarding decision, as well.
If your company is considering relocating or expanding, we invite you to examine how the costs of doing business in the North Texas suburb of Midlothian compare to other Lone Star locations and beyond.
We believe you will discover that Midlothian makes good sense for your money and your business.