Relocating Your Business

Relocating Your Business

The grass always looks greener on the other side to many entrepreneurs each and every year, and a change of place seems like the most promising path to take to achieve growth.  As a result they move to a brand new place in the hope of finding better odds when it comes to business success than was the case for them in their prior location.  Nor are they alone, with the US Census Bureau reporting that around 40 million Americans opt for relocation per year, with 38 million changes of address forms being handled by the US Postal Service every year as well.  While there is no one keeping a similar tally on business moves, pretty much every entrepreneur will contemplate a move as a method of expansion at one time or another.

Location matters.  Indeed, it is one of the top five primary reasons why businesses move.  Reasons for this include the desire to access new markets, the desire to increase cash flow or lower costs, considerations as to quality of life, labor and work force issues and the need to upgrade equipment or facilities.  At different times and for different businesses some concerns may be more pressing than others, but almost every move made by a business relates in some way to one or more of these issues.  The biggest reason for moving is the need to find a suitable workforce.  Perhaps there is a shortage of workers who are qualified for a number of occupations, particularly those which require technical expertise.  Firms which need specialized employees may well consider it worth their while moving to an area where such employees are easier to be found.

A company which finds itself in undersized or outmoded facilities will also have a reason to move premises.  The great majorities of businesses begin in a small facility, often even nothing more than the garage of the founder, and then relocate to larger premises within the same city.  Later on that location will also be outgrown or faults may be found with the facilities, infrastructure, utilities, services or some other feature.  Only then will a business consider moving away from the original area in which it began.

In any business decision cost is always a factor and moving can either create or cure such issues.  For one thing, the cost of living can vary quite alarmingly between different cities, with the cost of living in Little Rock in Arkansas, for example, being 13 percent less than that of the national average, while the costs of living in New York City are double that of the national US average.  However costs involve more than just living expenses, and in recent years the differences in geographic costs have begun to level out.  Businesses often find themselves in the position of having to compromise between picking the lowest cost facility and staying near to target markets, which is one reason behind the exodus of employees from the big cities to nearby suburbs.

Gene Salaz