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Reasons for Moving Your Business |
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When we think of moving, we tend to think of individuals or families changing the location of their home. Business relocation is a different type of moving altogether. Moving your place of work has a different set of reasons and goals attached to it than moving your home. The process remains complicated, stressful, and expensive, so a bottom-line first business needs to have good reasons to move.
If you own a business, then you need to know when it is worth it to move. If you work for a business that may move, it may be helpful for you to understand why businesses need to relocate so you can better prepare yourself for your company's change of address. Let's take a look at some of the most common reasons why businesses move.
Your business is growing
One of the best reasons for a business to move is because it is getting too big for its old accommodations. A successful business needs to expand to new markets and hire new people. Moving to a new, bigger, more expensive location usually is a necessary part of any successful business's upward climb. If you started your business in your parents' basement or garage, obviously your business should be relocated once you get to the point where you can afford to rent real office space. The area needed for the business needs to increase in size as the number of employees grow or if you need more room for equipment or inventory. Usually the bigger the company, the bigger the space needed to accommodate it.
New markets can also be a big reasons why a growing business moves. Perhaps a successful business seems to have exhausted the market in its particular location. Even if a business is successful, the original location only holds so much potential and eventually it may become clear that more profit and growth can be achieved in a different area. This applies mostly to service and entertainment businesses that rely on customers physically visiting their location. A new location in a high traffic area may be what a successful company needs to grow even more.
Real estate costs have become too high
If your business is centered in a big metropolitan center like Toronto, chances are high that you are paying premium prices for the real estate. At some point you, as the business owner, may have to weigh these costs against the potential profit that can be made by being in such a high-demand area. Sometimes it simply isn't worth it and it is better to move the company to a cheaper location. Businesses need to profit, so even if the new business site gets fewer customers due to its location, it may be more profitable for the business if the costs of the real estate are considerably lower.
You need to find an employee-rich area
Some businesses require employees that tend to gather in a particular area. The employee needs to be able to easily reach your business's location. Very few prospective employees will relocate for a new job and they probably will not know about your business in the first place if it is outside of their area. A business owner may want to move to an area that contains a lot of people qualified for his particular business. This may take some research, but there certainly are areas known as technology, acting, engineering, entertainment, or art centers all throughout the continent. Your business can only be as good as the employees that make it up, so it would be a good idea to move the company to an area where there are the highest number of the most qualified job candidates.
Competition
Let's say you own an Italian restaurant business. When you open your main location, it is the only restaurant in the area and immediately does well. Gradually the area gets more built up and soon there are fast food places near your location. Pretty soon there's an Olive Garden across the street, a pizza place adjacent, and a Taco Bell behind you. Your business is bound to suffer from all of this competition.
If competition gets too overwhelming in one area, it may be best to simply move to another spot. A new location where there are less businesses providing similar services can be much more profitable than a highly competitive area , even if it may hold more possible customers.
Personal reasons
In addition to all of these financial incentives for business relocation, the typical personal reasons for moving also could factor into a business move. The business owner simply could want a fresh start for his business or his family and move his entire company with him to a new location. Business moves and personal moves require different thought processes, but when it comes down to it, both represent huge life changes. |
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Author : Mike Sannitti
on July 3, 2014
TopMoving.ca - Moving Expert
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