2017-02-22 00:00:00 Running a Business English Understand both the relative advantages and disadvantages of relocating your business to new premises. https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/06/home-business-owner-packs-for-relocation.jpg https://quickbooks.intuit.com/ca/resources/business/understanding-implications-relocating-business/ Understanding the Implications of Relocating Your Business

Understanding the Implications of Relocating Your Business

2 min read

There are a variety of reasons why you may be considering or need to relocate your business. While this process may be necessary, there are both potential positive and negatives consequences resulting from the move. Depending on the type of business you run, how many employees you have, how far you’re moving, and how long you have to complete the move, the pros and cons may vary.

Three Key Elements to a Successful Move

Business owners commonly note three essential elements to a successful move. First, you need to be realistic about what you can afford and set realistic price goals when looking at spaces. The second is to do thorough research on the new areas you’re considering before committing. And the third essential element is to plan each step of the move; break down the various tasks and parts of the move and assign tasks ahead of time.

Potential Negative Aspects

Regardless of how well you follow the three steps above, there are usually some drawbacks to relocating your business. These negative aspects vary, but there are a few that remain a steady constant, regardless of the type or size of your company. The first is time. Even if you plan your move flawlessly, it will take time. Not only will you be required to deal with your day-to-day business dealings, you also have to devote time to planning and executing the move. The second is the unexpected. It doesn’t matter how realistic you are about costs, how well you know your new location, or how thoroughly you’ve planned, unexpected issues always pop up. This may involve unanticipated costs for moving fees or service hookups, repairs needing to be made to the office, supplies after moving, weather delaying the process, and any number of other unexpected problems. The unexpected is often the number-one downside and stress-causing aspect faced by relocating businesses. Other negatives include moving away from a major customer base, difficulty navigating a new market, possible higher tax implications, and difficulty adapting to different rules, regulations, and laws.

Potential Benefits

One major positive to relocation is the potential to expand your company and its reach. Many businesses pursue a move to the United States because it is home to the largest consumer market in the world. Having access to this large consumer population can mean substantial increases in revenue and also open your business up to a new pool of professionals available for hire. Another driving factor behind relocation is the ability to reduce overhead costs. If your business, or the market, is struggling, relocating to a less-costly office space, city, or country can make all the difference in terms of staying in business, generating more income, and eventually leading to the possibility of expansion. Even after factoring in the costs of moving, your business may ultimately profit more in the long run from a move to a cheaper place. If you are considering or planning on relocating your business, try to keep in mind there are both positive and negative implications. Careful planning beforehand can help to accentuate the positives and minimize potential negatives.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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