Things To Have In Mind When Choosing A New Location For Your Business

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A frog's-eye view of four tall glass commercial buildings

Choosing a new location for your business is not a decision you should rush. If you don’t think things through, you could negatively impact your business in many ways. Therefore, you need to thoroughly consider different factors before making your choice. We’re here to help by giving you advice on what you should pay attention to the most.

Reasons for moving a business to a new location

Before you decide to relocate your business, you have to be sure you’re doing it for the right reasons. The reason for moving is one of the key factors in determining your business’s new location.

For example, if you are expanding your business, you need to look for space that can accommodate more employees. Or, if you want to lower your costs, you should look into cheaper areas.

Here are some of the most common reasons for moving your business to a different location:

  • Business expansion
  • Proximity to biggest clients
  • Increase productivity and meetings efficiency
  • Need for a new market
  • Lowering the operational costs
  • Better recruitment opportunities

What to consider when choosing a new location for your business?

Whether you are relocating your business because you’re expanding or looking for new markets, choosing a new location for your business is not easy. You need to be systematic and take your time to make this decision.

Here are the main things you should consider before deciding to relocate your business.

Choose a business location type

Every business has specific needs. Based on them, you should choose the type of location that is the most suitable and can meet most of those demands.

For example, if you run a manufacturing or distribution business, your choices of suitable locations will be limited. Therefore, you should look for and research industrial sites with a lot of warehouse space.

Tall commercial business buildings in a financial district

The right location depends on the type of business you’re running. For instance, if you are in the financial sector, you’ll probably want to look for available space in the city center.

On the other hand, if you run a successful tech company and don’t rely on foot traffic, you will most likely want to look into renting in one of many commercial business spaces. Keep in mind that your business location should be in line with its style and image.

Depending on the reasons for your business relocation, you might want to consider relocating to a different city or even state. If your business has a higher chance to benefit in another place, you should consider packing and moving there.

Even though a long-distance business move sounds intimidating and challenging, there are ways to easily transport everything to a new location. By hiring the right movers and involving your employees, you will go through this process smoothly and perhaps even improve your company culture.

Finances

Another critical factor to take into consideration when relocating your business is your finances. You need to thoroughly analyze your financial abilities and be sure you can afford the costs of moving your business to a new place. To be on the safe side, consider hiring a financial expert to help you set a realistic budget.

Keep in mind that rent is just one of the financial aspects you need to focus on. There are other location-specific expenses you need to consider, too. Be careful not to miss hidden costs that every location has. For instance, expenses related to taxes, renovations, utility upgrades, and similar.

People sitting at a desk and looking at financial charts

Before you start looking for a new location for your business, make sure to analyze your finances and set a realistic budget.

Also, don’t forget the cost of the actual relocation. You will need to hire experienced movers such as Homegrown Moving Company to help you safely transport everything to the new location. Depending on the amount of stuff you have to move and the distance, you will get a quote. That way, you’ll have an approximate number you can count into your budget.

Accessibility and security

You need to ensure that your new location is easily accessible to your customers, employees, and suppliers. For instance, if your business relies on frequent deliveries, you need to research local transport links and closeness to main roads and motorways.

Also, think about your customers and how easy it is for them to reach your business. If you rely on high foot traffic, you need to ensure it’s easily accessible by car or means of public transport.

Don’t forget your employees, either. For example, if you are moving to a different city or a state, some might need to relocate for a job. To make this transition easier for them, help them find accommodation near your facilities after finding a location.

Keep in mind that your location can increase your chances of being affected by crime. Therefore, safety should be one of your main concerns. Making sure you and your employees feel safe and protected is not something you should take lightly.

The safety of your business should be your concern, too, especially if you have a lot of inventory. Therefore, research the risks of potential criminal activity before you choose a new location for your business.

Closeness to competitors

One of the critical factors in ensuring your success is closeness to your competitors. In some cases, proximity to competition is not a bad idea. For example, if you run a restaurant, you can catch the overflow from existing businesses in the area.

A woman looking at restaurant locations on an iPad

Research the area you’re interested in and check how much of your competition is already located there. You want to avoid areas where there are too many businesses like yours.

However, in most cases, you want to find a place that’s not saturated with other businesses in the same industry as you are. This will make your marketing job a lot easier. Ideally, you want to find a place where your product or service is in high demand but competition low.

If possible, the best solution is to find a location where other businesses are complementary to yours. That way, you’ll ensure your business fits into the local market.

Good luck with choosing a new location for your business!

Choosing a new location for your business can be a crucial factor in your overall success. Therefore, before committing to a site, make sure to do the necessary research and consider the factors we’ve enlisted above. That way, you’ll be confident you’ve made the right choice.

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