Relocating your business is sometimes the only option a business owner has to keep their business alive or capitalize on a new opportunity. Regardless of the reason, it’s easy to overlook how costly relocating a business can be.
Upfront costs are prominent and noticeable, like buying a new building and paying movers. The expenses that begin to add up are the hidden ones. These hidden expenses are overlooked by most business owners, who either forget or don’t consider them when relocating their business.
Transporting company vehicles
Moving office equipment is a straightforward process, but moving company vehicles requires a different touch. Vehicle transportation is necessary, but it can be time-consuming and expensive to complete this process independently or by driving one car at a time. Luckily, auto transport companies like this can make transporting company vehicles more effortless and cost-effective.
When relocating, businesses have a few things to consider. Assuming they owned their last location, they’re probably looking to sell it. Getting a building ready for sale again is a time-consuming and grueling process. Renovation costs will add up over time.
Most businesses, especially smaller ones, opt to lease their offices to save on costs. While that does cut the cost of renovating a previous location and getting it ready for sale, you may need to get the new site ready.
Not every office or building is suited to each business’s needs. Companies are making room for equipment, making additions to the office, or even building an entirely new section. Typically, renovations are made to recent locations to fit the company’s condition.
When relocating your business, it’s essential to understand that not all employees can travel to your new business location. Depending on how far your new operation is from your old one, your rehiring fees may be extensive.
Job vacancies are reason alone to be wary. If you can maintain your workforce, you’ll save on hiring fees. Still, the time it’ll take to find new employees is also a hidden downside to relocating.
Time is something business owners consider when relocating a business, but sometimes, they forget how much time relocating takes. While a company can estimate how long its move will take, it’s still hard to predict fully.
Proper planning mitigates the time loss, but it doesn’t eliminate it. Your business will be out of operation for an extended period regardless of how well you plan it out. Not being able to deliver to consumers means lost profits.
Remember that relocating is an investment, and consider how much money you’ll lose if you cease operation.
Purchasing new equipment is costly, but moving equipment can be almost as expensive. Depending on how old your equipment is, some business owners also time their relocation with upgrades.
It may be worth updating instead of tossing and disposing of your old equipment. Still, even then, costs aren’t always saved. Disposal fees for equipment, and cumbersome machinery, add egregious amounts.
Regardless of what you decide, you’ll be facing disposal fees, upgrade fees, or equipment transportation fees.
Before you go
There are many things to consider when relocating your business. Keep in mind these hidden costs before you make any decisions.