Moving your business is a big decision and you certainly can’t risk it at any cost. A business move is expected to make newer and better opportunities available, but there are chances that it costs you much more than you might have calculated.
Experts at iMoving state that often businesses fail to take in account the miscellaneous costs associated with the move. While their calculation includes obvious costs like the cost to hire movers, changing utilities and procuring packing supplies, there are a range of expenses that do occur during business relocation. A common example of such unexpected costs can be the cost of lost productivity or business. However, the experts add that with thoughtful planning, businesses can avoid falling flat on their face with the added burden.
Business relocation: a complex decision
Business relocation experts state that business owners need to devise a thoughtful strategy taking in account all the costs associated, while moving from point A to B. This will help them make a budget for what they might be facing during the intensive process. It is advisable that the business must start planning for the move at least 12-18 months in advance.
Before you make a firm decision of relocating your business, review this list of costs to expect during the transition:
Loss of productivity:
Experts say that businesses take a lot of time to plan a move, which also engage employee time and efforts. Usually, for a mid-size business it can take 800 to 1,000 hours of employee time to plan and carry out a move. This is the time that you do not invest in the core business activities but in the additional tasks related with the move.
Loss of revenue:
Loss of revues is one of the major losses that most of the companies face as they relocate. It happens when your relocation planning starts disrupting your core operations. If you are in the middle of a core project, do not plan a relocation. If you have recently delivered something big, do not plan a move either. The time you choose for the relocation must be strategic, offering you enough capacity to make up for the losses you sustain in terms of productivity. So, what is the best time to move a business? Try picking a holiday or weekend for the move. It will save you from major revenue losses.
Secondly, you must not cut off your contacts at any cost. Until and unless you reach the new business and set up again, you must keep your old office functional, even if with minimumresources. You don’t want your customers to find you unavailable when they reach you at your old office, do you?
You need to market your new address and for that you will need a range of new materials with the updates address. Brochures and business cards are a few supplies that you will have to print with your updated address. Moreover, you will also have to update your digital content with the latest contact information.
Cost of staffing:
Many of your staff members won’t choose to relocate with you. Hence, it is advisable that you stay prepared for hiring, training and inducting the people into the system. This is one cost that can prove very expensive and it is thus advised to convince your staff to move along with you.
Expenses related to Real estate and Information technology:
There is a range of real estate costs associated with a business move. Such costs may include fees for breaking a former lease, deposits, or paying for the cleaning, repair, realtor fees or any space reconfiguration costs related to your previous space. Similarly, you will have to terminate your IT services at the previous location and avail a new connection at the new address. Be prepared to handle all these costs.
When you engage professional moving company, you will be provided with an insurance coverage. However, if you think your belongings are way more expensive that the cover provided by the movers, you will have to consider buying additional insurance, also known as third-party insurance. Depending upon the value of your assets and the location, the cost of insurance may be higher.
There will be a range of miscellaneous expenses associated with the move. Some of these costs include security, cleaning, vending, financing and other incidental costs important to ensure smooth functioning.
As you include every minor cost in your budget right from the cost to buy moving boxes to leasing a new space, you must not forget to also incorporate these hidden costs in your planning. A strategic planning is very important for a successful move and as you plan the move, make a checklist and make other arrangements, make sure you pay enough emphasis on your financial planning as well.