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When to Consider Relocating your Business

While there are a great number of external factors that influence the performance of your business, these are often far beyond your control as a commercial venture owner. With this in mind, it is far better for you to concentrate on influential factors that are well within your remit of control, and build your vision and expansion plans based on what you know rather than mere speculation. This allows you to create a far more reliable business plan, and make the right decisions at crucial junctures in your progress.

Choosing When to Relocate: What to Look for?
The decision to relocate is a strategic one, and something that could be taken based on a number of factors. By focusing on those that you can control, however, you are likely to arrive at a far more sensible judgement. Consider the following:

Is your Business Taking on New and Sustainable Business?
One of the first things that you should consider prior to relocating is whether your business is taking on more customers. If this is the case, then you need to pay attention to the scope of work and whether your increased load can be dealt with by your existing staff. Even if you require additional assistance, take care to decide whether the increase in work warrants increasing your permanent workforce, or if outsourcing is a more suitable and affordable option.

Will your Outgoings Exceed your Turnover?
Successful business is all about profit rather than turnover, so do exact calculations and financial forecasts prior to relocating. If you have taken on additional work, then estimate how this will translate into profit for the forthcoming year. Then research potential new properties and the cost of relocation, as this will enable you to assess whether relocation will impact on your firm’s profitability. If so, then it is a move to be avoided at all costs.

The Bottom Line
Internal business factors such as profit, workload and expenditure are all entities that can be estimated and accounted for, as opposed to external market influences that are as unpredictable as they can be devastating. So make your decision as to whether or not to relocate based on facts and figures that you can assume control of, and ones that are unlikely to vary significantly over time.

 

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