5 things to consider before making a move.
Most entrepreneurs are born risk-takers. They dare to innovate and try new things—including new locations.
“Although an owner might want to relocate for personal reasons, such as a nicer climate, better schools, or more cultural activities, relocating for business reasons must be based on a cost-benefit calculation,” says Richard L. Weinberger, a small business consultant and author of Propel Your Small Business to Success: Accelerated Actions to Maximize Profit.
Before making a move, here are five things to consider:
1. Cost of moving. Not only will it cost money to physically move your business, but you also may incur costs when terminating a lease or selling property, making a deposit on a new lease, purchasing new assets, and buying new signage, business cards and marketing materials.
2. The environment. Is your prospective location known for any natural disasters that could jeopardize your business? Could seasonal weather affect your customer base?
3. Vendor relationships. Think about whether a move will impact your relationships with suppliers, says Mike Salem, co-founder and CEO of Vorex, a professional services automation company. Maybe you need to be in a city with a high concentration of specialized talents, such as Silicon Valley for Internet companies, he says.
4. Client relationships. Consider whether you will be able to retain your current customers and whether the new physical location is attractive to new customers, Weinberger says. Also, research your competition in the new city.
5. Workforce considerations. Will you need to relocate your current employees, or will you hire new workers in your new location? Consider whether the local workforce includes people with the skills and talent you need.