It can be very expensive to move a small part of your business, much less the entire operation. Sometimes, however, it is worth the effort – whether you are looking to expand, relocate to a more lucrative region, merge with another company, or do major restructuring work.
Management of an office move requires that you are aware of all factors. This includes changes in commutes, immediate costs (cost of moving, cost of equipment, down payment for a new location), as well as long-term changes such as changes in shipping and supply costs and changes in distribution, property taxes changes, payroll changes, financial impact on working capital, cash flow for the fiscal years, and so forth.
Let’s take one step at a time to tackle the possibility of an office relocation.
THE OFFICE RELOCATION
No matter what your motivations for moving the office, you’ll need a feasible location.
You must determine your viability by calculating your budget for rents, mortgage payments, utilities and other overhead costs. There are also some basic requirements such as the proximity to the current location (especially if you intend to expand and keep the business) and the cost of moving to the new location.
There are also smaller but equally important considerations such as proximity to public transport options and ease of travel for employees (and you!). Parking nearby. Yes, parking. Parking problems outside your new office can make your life difficult for clients and cause you to lose your customers. It is important to consider the distance from the nearest train station or airport.
A small team with only a few workstations, a printer and a printer can move across town for a fraction of the cost of moving an entire office. When deciding whether a given location is feasible, you must consider these moving costs.
If your company is a small one and plans to grow, you may consider nearby universities or the availability of local talent.
A tech company will prefer to locate in a city that offers better opportunities for coders and developers than one that is far from the center of nowhere. However, there is a cost associated with this – opening a business in Palo Alto will be more costly than opening one in Boulder, Colorado.
You may need similar monthly costs if you are moving to an office with a similar size. If you are expanding, however, you will need the extra capital to move to a larger and more desirable location. Restructuring your workplace can help you to reduce costs and ease the transition.
TOTAL RESTRUCTURE
Moving to another town can have many benefits, including the possibility of being closer to a bigger talent pool and more clients. You still have to find ways to reduce costs.
You may be able to reduce the cost of moving by restructuring the business or creating a hybrid remote set-up. This is especially true if COVID helped you convert to a hybrid structure.
Many businesses and offices were forced to adopt more work-from-home policies by COVID. While many have celebrated the return of the office, many workers still want to have at least the option to either work remotely or from home .
The advantages of working remotely include the ability to give employees who aren’t looking to move to another area the opportunity to work from home either in a full-time or part-time capacity. This saves you the time and expense of having to rehire/train a large portion of your workforce.
Remote work can be integrated into your office relocation. This allows you to choose a smaller, more convenient location for your business. You can also use the opportunity for improvement in your online infrastructure, create a better intranet portal, and improve your company’s policies and protocols regarding remote work.
The Benefits of Coworking
You can also use the perks offered by an established workspace to drastically reduce overhead costs and eliminate the financial impact from a large down payment. In addition, you will enjoy the benefits of a fully furnished, tech-oriented workplace in a prime location for a fraction the cost of moving to .
Coworking spaces are a great way for freelancers and independent contractors to find their feet in a new place. They offer the same benefits as traditional office space but with unique benefits such as a network of professionals and networking opportunities, or the flexibility of renting a workspace monthly without any upfront cash deposits.
They are ideal for small businesses and individuals who want to move or set up a satellite office. Coworking spaces are easily found in established tech cities as well as growing ones. This helps companies all across the country to reduce the hassle and cost of moving to any area. It also offers greater flexibility than traditional commercial office leases.
ENABLING A SMOOTH TRANSITION
Planning ahead is key to smooth relocations, whether you are moving to a bigger office or a smaller one, in a faraway region, or to a coworking space with hybrid configuration.
You should give your employees notice at least six months in advance of the planned move. Also, let your clients know that you expect some bumps as you pack up and get set up in your new location.
You can plan your relocation around a more peaceful time of year to allow you to focus on the logistics and not have to manage a full-time job. It is also a good idea to think long-term. A coworking space can be a great way for your company’s growth and expansion until you are able to buy a commercial lease and transform it.
This post was written by Tara Kintz. Tara is a director at https://www.signatureworkspace.com. Signature Workspace, owned and operated by Cantor Fund Management, offers services and amenities such as private offices, flex space, co-working space, virtual offices, meeting/conference rooms, and more.
