Are you considering relocation your business operations to a new facility?
There are many things that you will need to consider during the feasibility process and decisions that you will have to make.
The impact on the operations
- The impact and cost of moving office and operational functions
- Legal costs and implications
- Setup – facilities, fit out, data and communications and much more
- Business continuity
- Staff and your labour needs will there be a willingness to travel, etc
The reasons behind the relocation
- New markets or change in business direction
- Personal circumstances
- Changes to client base/labour/amenities/supply chain/etc
Assess your needs,
This will involve much planning research and consideration similar to that when you decided to involved in business or launched a new product or service in your business.
Does your business premises need to be where they are now? Is your client-base shifting? Have rents increased beyond your means or are new markets developing in other locations? If so, it may be time to consider relocating your business.
Relocating a business can be a complex task. First and foremost, can the business maintain its viability if you decide to move? Secondly, would relocate only serve as a band-aid measure to an already failing business? In many cases, if you choose carefully, your business will benefit from the rejuvenation of a new location.
Where to get information
It is important to make use of all the agencies which can provide helpful information regarding demographics and economic factors of a particular area. The Australian Bureau of Statistics provides information in relation to this www.abs.gov.au The type of information you will need will depend on the size and nature of your business.
For example, the New South Wales Department of Trade and Investment can give practical assistance to international and interstate businesses planning to relocate or expand in Sydney and NSW. For medium-to-large businesses, the investment division offers many forms of support and assistance.
The agency provides information to help businesses prepare feasibility studies and business plans. For example, it can provide information on the size of markets in your industry in NSW, Australia and the surrounding region and data on business costs. It can also help you find the best site for your business in Sydney and NSW. For more information, visit www.trade.nsw.gov.au or www.business.nsw.gov.au or www.smallbusiness.nsw.gov.au .
Whatever the individual circumstances, making the decision to relocate must be done with foresight and planning.
When thinking about relocating your business:
- Ask your customers/clients whether they would be willing to travel to use your services/product
- Develop a specific brief that outlines your business’ needs when it comes to premises and location
- As part of this brief, include reasons the current premises or location are now unsuitable
- List what you would like your business to achieve through its relocation, for instance, improved profits, streamlined operations, increased customer base, etc
- Speak to businesses in the area to gain an insight into the current economic situation
- If possible, speak to business owners who have relocated to see how they handled the situation and how their businesses faired
- Assess key issues you will need to consider if leaving the current business premises. For instance, the lease arrangements, utilities, assess the cost of relocating, what you will do with superfluous stock (if applicable), etc.
You should aim for at least six months of planning before making any major decision. Make sure you do not do anything without having put in the necessary research and groundwork.
If you find premises in the right location, but it needs renovation or fit out, organise the pricing/quotes for work before making any decision on relocating. This way you will know before you make a decision, what the financial impact of a relocation will be.
Sometimes relocating a business may be a result of personal circumstances. It may also mean the business is relocating to a regional area or another city. In this case, you will also need to consider the impact on your family and housing arrangements.