Five Things To Consider Before Relocating Your Business

July 2, 2010 by · Leave a Comment 

For business owners/executives/managers that have outgrown their current facility’s size or design, their first instinct is to shop for a new location. But remodeling may actually be more affordable and better for the company in the long run. To decide, ask yourself these questions:

  1. Do you like the current facility location? Consider the proximity of your clients, shipping and receiving, business travel, and employee commutes, and how a new location will affect your ability to reach all those places.
  2. How long do you plan to stay there? If your answer is you intend to stay in the current facility at least 5 to 10 years, then a remodel may be the solution. If you plan to relocate the company in a shorter period of time, there is rarely short-term financial benefit from a major improvement project.
  3. Do you have the largest and nicest business in the close proximity? If so, your facility is not likely to appreciate much more in value. But if you have improvements, features or amenities that surpass others, the additional cost of remodeling may be a good investment that will pay off when you’re ready to move.
  4. How’s that floor plan working out? Newer facility designs feature wide open spaces and trendy floor plans. Remodeling can improve the flow of work, moral of employees, and attraction to your facility.
  5. What is the true cost of moving vs. remodeling? Don’t make a quick decision based on what seems like a bargain. Evaluate the true financial and emotional costs, as well as the time involved for each option. Be sure you know if a new location need costly retrofits, repairs or improvements. Any new furniture or decor you buy for the new location should factor in, as well. Within the same consideration, the cost of your facility renovations should not exceed 30 percent of the property’s value. You will likely be better off moving if you have to spend more than that.  Key is to analyze your options carefully!