When considering the relocation of an established business, many factors should come into play. First, what are the reasons for the move? What are the costs of moving? Are there moving companies that specialize specifically in office relocation services? What is the market like that you’re considering relocating to? These are all questions that must be answered before proceeding forward.
For example, below is a list of reasons to consider when relocating a business:
- Cost overruns
- Market access
- Access to talent
- Quality of life
- Better opportunities
- Expansion
- Maximize space
- Access to B2B opportunities
- Best possible workforce
- Cost-effectiveness
- Expand market share
- Facilities
- Improve the brand
- Lease expiration
- Closer proximity to clients
- Consolidating offices
- Improve morale
- Improved access to resources
- Better business environment
- Legal factors
According to an Entrepreneur article about business relocation, “While moving carries risks, a move can be one of the best things you ever do for your business. There are no guarantees in relocation, and as many things can go wrong with a move as can go right. Common mistakes include rushing the decision, focusing too narrowly on a few costs, failing to use available economic development services, ignoring quality-of-life factors, missing important environmental or regulatory concerns, and, believe it or not, failing to plan for future expansion. These mistakes can be boiled down to hurrying too much and trying to do a move too cheaply.
An entrepreneur must figure in the cost of business interruption. Almost inevitably, a business’s productivity will be reduced for a period of days or even weeks after a move,”.
Cost overrun meaning
Most of the items on the above list are fairly self-explanatory except for the term “Cost overruns.” Apparently, cost overruns, by Wikipedia’s definition, means, “A cost overrun, also known as a cost increase or budget overrun, involves unexpected incurred costs. When these costs are in excess of budgeted amounts due to a value engineering underestimation of the actual cost during budgeting, they are known by these terms,”.
To avoid cost overrun during a relocation, find professional movers who understand the importance of minimizing downtime and disruptions to your business operations. If they specialize in commercial moves, they should have a comprehensive range of services that can handle every aspect of your move, including packing, transportation, and unpacking, ensuring a smooth transition for your company. Their skilled movers should be trained to handle sensitive equipment, office furniture, and confidential documents with utmost care and confidentiality, guaranteeing that your assets are protected throughout the entire process.
Another example of cost overrun is seen within the construction industry. Sometimes, as in the case of my Uncle’s contracting company, estimators are ill-equipped to accurately quote a project by means of poor budgeting, inadequate planning, unforeseen circumstances (the weather or material costs), not factoring in time and materials, and underestimating the actual cost during the budgeting process. Thankfully, when my Mother partnered with her brother (my Uncle), she hired a team of skilled and accredited estimators, thus eliminating profit loss on future projects.
Cost overruns can indeed be a daunting challenge when relocating a business, but understanding and mitigating them involves more than just hiring the right moving company. It’s crucial to delve into detailed financial planning and conduct a thorough risk assessment beforehand.
Begin by scrutinizing your budget to identify areas where costs could spiral out of control. For instance, unexpected regulatory fees, delays in permits, or unanticipated leasehold improvements might inflate costs unexpectedly. Businesses should also be strategic in negotiating with service providers, whether it’s the moving company, local contractors, or new facility landlords, to lock in costs early and avoid future surprises.
Additionally, assess potential fluctuations in currency if relocating to a new country, as these can significantly alter your budget. Establishing a contingency fund specifically for such unexpected costs will provide a financial buffer, enhancing flexibility during the process.
Lastly, financial advisors should be involved in the budgeting and planning stages to capitalize on potential tax efficiencies that might offset relocation expenses. These proactive strategies can help ensure that cost overruns don’t derail your relocation plans.
Moving IT equipment
One hidden aspect that can contribute to cost overruns relates to IT and communications infrastructure. Businesses often underestimate the complexity and cost associated with dismantling, transporting, and reinstalling these critical systems. Engaging IT specialists to plan this component of the move can help prevent costly downtime and additional expenses post-move.
From business IT experts, MicroPro they suggest considering the following, “Considerations for a Successful IT Relocation
- Power, Cabling & Bandwidth
- Space Requirements
- Physical Servers
- IT Audit
- VPN, Remote Access & Other Applications
- Transporting IT Equipment
- Business Continuity During the Move,”.
In terms of moving IT equipment, it’s essential to conduct an IT audit first to establish what needs to be relocated and what could be upgraded or decommissioned. This assessment should consider both hardware and software assets, inventorying each item to ensure nothing critical is overlooked during transit. Next, devising a comprehensive relocation strategy is crucial, which involves designating a project manager to oversee the coordination between your internal teams and any external IT specialists involved.
One significant aspect is ensuring that power and cabling requirements are adequately addressed in the new location. This involves not just understanding the current infrastructure but also planning for any necessary upgrades that could accommodate future business expansion. Ensure that your new space is ready to handle the electrical load, and check for compatibility with your existing systems—issues here can cause significant delays.
Servers and sensitive data equipment require special attention. Servers may need secure transportation methods, such as anti-static packaging, to prevent damage. Consider using encryption to protect data during the move and keep backup copies stored offsite to mitigate loss risk. Transporting backup power supplies and ensuring the new location has appropriate climate control measures in place are also paramount.
VPN and remote access systems are vital for maintaining business continuity through the transition. Ensure these systems remain operational, allowing employees to work remotely during the transition period without impacting productivity. This preparation extends to other operational applications that might need reinstallation or reconfiguration in the new setting.
Remember, communication is key. Regular updates and clear lines of communication between all parties involved will help alleviate concerns and ensure a seamless IT relocation process. Engaging employees early and offering guidance through the transition can also help maintain morale and minimize disruption.
Reasons for relocating a business
In conclusion, while the reasons to relocate a business may vary from one company to the next, the constant considerations of budgets, IT equipment, and personnel should be at the forefront to ensure a smooth move.
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