Are you bumping into people every time you walk away from your desk at work? Are desks crammed into every conceivable corner of your office? Are these distractions starting to affect work productivity? Is the supply room no longer big enough for the boxes of inventory piling up?
It may seem like this all happened in the blink of an eye, but it was most likely a gradual process as your business grew. In a sense, the sight of an overcrowded office symbolizes how far your company has come. It’s a sign of a needed milestone: a new space! It may be a bittersweet milestone, like when a baby grows out of their crib and moves onto a big kid’s bed.
Deciding when to relocate and where to relocate is always challenging. It’s a big decision with so much to consider for you, your business, your staff, and your customers. Maybe you’ve already begun your Google search for “full-service moving companies near me,” but want to make sure your reasons for relocating are valid. Many common reasons exist for a company to relocate, whether within the same city, out of town, or even to a new state. Here are seven common reasons for business relocations.
1. Switching to Hybrid or Remote Structure
The Covid-19 pandemic changed our business world forever, and in many ways, for the better. Companies discovered how to make the remote model work well and realized how much money they could save on rent by having their employees work remotely. They no longer needed to be reimbursed for gas. They cut cleaning and electricity costs. Downsizing offices cut lease costs. Fewer office spaces usually mean significant savings in other areas too. It also enables companies to offer flexible work arrangements, which can help to attract and retain new staff. More companies than ever before are opting for remote or hybrid teams, meaning downsizing to smaller offices.
2. Expansion
While some are downgrading to integrate a remote model, others need more space to accommodate their growing business. Expansion is an exciting reason to relocate. You may be dealing with cramped workspaces, limited parking, crowded waiting rooms, and limited storage. It may be evident to you and your entire office that you need a new space. This is an exciting milestone, and it may be wise to relocate to a space even larger than you currently need to accommodate future growth. It may be bittersweet, but a larger, more prominent space will help your business operate more efficiently and give everyone much-needed breathing room.
3. Facility Upgrade
You may discover you need a new facility if you’re always looking for ways to advance technology, upgrade products, and enhance services. A new infrastructure may be one way to promote business growth, introduce new product lines, and maintain quality service. Your current building may be outdated, but you want something more modern and fresh. You may even want to find a plot to build from scratch.
4. Workforce and Labor Issues
Sometimes, the most intelligent decision in a changing market is to change location. Market changes may make it challenging to fulfill the needs of your business in your current location. Relocating somewhere more straightforward to find the specialized workforce you need may be the missing puzzle piece in your daily business operations. This might be near a university, or a city known for your specific industry. Changing locations may open you to a new talent pool of potential employees and new customers.
5. Quality of Life
Sometimes it’s not about money. Sometimes, a company’s motivation for relocation is for the business’s and its employees’ quality of life. Moving from an area in your current city, state, or county to a better part with better health care, schools, and recreational activities can pay dividends in the future of your company culture, turnover rate, and overall profits.
6. Cutting Costs
Running a business is all about minimizing payouts and maximizing profits. Cutting down expenses is often the inspiration behind a business relocation. You may figure out how much you could save on rent, utility costs, taxes, and gas if you operate from a different spot. Cost of living may also be a huge deciding factor when choosing where to relocate. Sometimes, states even offer tax breaks and incentives for businesses to encourage them to move to their state and improve their community. A new state might offer lower costs if you’re contemplating where to relocate.
7. Lease Renewal or Expiration
An upcoming lease renewal is the perfect opportunity to review your options and assess whether renewing or moving somewhere else is best. Maybe you’ve been chomping at the bit to leave your current location right when your lease is up, or perhaps you’re starting to weigh the options, consider the market, and decide if you can get a more competitive deal or a more suitable business location.
We see companies relocate all the time for various reasons. It may be a bittersweet and overwhelming choice to make, but relocation can exponentially impact the future of your company culture, employee retention, and profits. We’re not experts on running your business, but if you’re hunting for local moving companies or long-distance moving companies in Utah, our professional packers and movers can help you relocate from start to finish.
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Infographic
Deciding when and where to relocate is a big decision for a business. There are common reasons for relocation, whether within the same city, out of town, or to a new state. The following infographic lists seven common reasons for business relocations.
