Real estate professionals often say that location is everything. However, changing demographics, customer needs and local business developments may motivate you to relocate your office. Below offers three benefits and three risks of relocating your office to a bigger space.
The most important benefit of a bigger office is the ability to offer expanded services or products. Many businesses that experience rapid growth actually lose potential opportunities through the inability to meet the growing demands of customers or adapt to industry changes. Moving is also an excellent way to advertise your company’s success and competitiveness.
A nicer office in nicer location can benefit both your clients and employees. For example, locating to a commercially busy space may improve sales. Being located near public transportation hubs or popular restaurants may also increase incoming customers. A better location also may make the commute easier on employees.
Economic Development Assistance
Some towns, cities and counties offer business incentives to incoming businesses, such as tax credits and reduced utility rates. While these locations may be in a developing area, there will most likely be plenty of inexpensive space available. In addition to this, a move to a different county may reduce your sales taxes.
The new office space may be in a different part of town or even city and there may be different zoning laws and fees involved. As a result, it may take months to sort through local and state regulations that apply to your new location. All of this will be costly and time consuming.
Loss of Customers
If your office is the only commercial location available to customers, they may not react well to an office move. That is, you may lose customers if you change your location to across town. In order to reduce customer loss, consider informing clients as soon as possible of the move. If possible, offer existing clients discounts or incentives. In addition to this, begin advertising and marketing efforts as early as possible in the new area.
There will be a variety of financial costs associated with relocating your office. These include leasing, deposits, renovations and the move itself. An expensive move, together with the loss of customers, will restrict cash flow and earning potential.
Moving an office to a larger location has potentially harmful risks and excellent benefits. Before moving, be sure to plan well to avoid any problems that could cost your business. Consider using rack cases to protect your electronics. Tell your customers about the move and make the transition as quick as possible to get your business back to normal in no time.