“Location, location, location.” This real estate mantra applies not only to residential customers, but to commercial businesses. Are you considering a move for your company? Perhaps your business has steadily increased its production and everything is “busting at the seams,” or perhaps your business has changed or enhanced its product line and is in need of new markets. Is it time to relocate?
Many businesses struggle with the decision to move, because it can be an arduous, costly, and time-consuming process. Yet, the company may, in weighing various factors, decide that a change in location will provide not only an outlet for growth, but a good location for employees.
Often, a company will desire to upgrade their facilities or equipment to allow for further growth. They may find that their current location is too small or outdated. The company finds that it simply has run out of room due to its success in the marketplace. Another reason for moving may be to find more qualified workers, particularly if the business is located in a remote area or an area far away from a vibrant and enticing job location for new applicants. The company may want to consider re-locating to an area where educational facilities are readily available and from which the potential workforce is graduating.
To entice potential candidates, the workforce often wants to balance work with quality of life, so a workplace that is easily accessible in a morning or evening commute can entice qualified workers to look at the company for potential employment. Such a move can also provide current employees with the sought-after work and life balance. Of course, other quality of life issues may be considered by the company, such as education, recreation, health care and crime rates.
Another factor in choosing a location is an entry into a new market, which would produce opportunities for further growth, particularly if the company is in an area that has re-shaped and the customer base has dwindled. When considering a move, the business may want to look at costs such as tax considerations. If moving to another city, some cities offer tax incentives for new businesses, such as property tax abatement, sales tax exceptions and income tax reductions, to name just a few.
If the company is thinking of an international move, management will need to consider what it will take to do business in another country. Management must take into account registration of the business and what rules and regulations apply in that country. Other factors to be considered include basics such as language and culture. When deciding whether to move, it may be wise to hire a consultant familiar with the area, local businesses and people. This valuable information may cause the company to consider changing its marketing strategy to be more culturally specific. Also, if there is a language difference, the company will need to consider how this may or may not impact everyday business operations.
So that the business operations are as seamless as possible once the move to another country has occurred, it may be wise to ensure that at least top management, wherever they may be located (especially if back in the U.S.) can speak the local language.
Moves are costly, time consuming and arduous, but when executed correctly, can have a positive impact on the growth and success of the business.