Moving your business isn’t a decision that should be made lightly. Whether the goal is to save on operational costs, access new talent, expand, or accommodate your lifestyle, relocating is not without risks. While this shouldn’t discourage you from taking a leap of faith, it should encourage you to conduct research and develop strategies to increase your chances of success. As you begin your process, here are a few things worth looking into.
Demographics
Before deciding on where you’ll move, do some market research to learn more about demographics. You should clearly understand how many people live in the town you’re interested in, the average age, race, gender, marital status, income levels, and employment availability. Compare this information to your target customers. If there aren’t enough consumers in the area that could benefit from your products or services, relocating to this destination would be a waste of time.
Market Research
Beyond demographics, you also need to know the market. Are there competitors in the area? If so, how many? While you should never be afraid of a little competition, moving to a city where there are hundreds of businesses just like yours in the area makes it hard to reach sales goals.
If there are a few similar businesses in the area, you also want to know their rates and their strategies to accommodate their customers. Should you decide to make a move anyway, you want to at least position your company to stand out from the rest to increase your chances of turning a profit.
Costs
The city you’re considering has a broad enough consumer base. You’ve done adequate market research and developed a plan to beat out the competition (if there is any). The next factor you want to consider is the costs. Keep in mind that you’ll need to cover the move’s cost, relocation expenses for yourself (and any employees), living expenses, and operational expenses.
You can start by contacting moving companies to determine how much it will be to relocate. The local taxation office should be able to provide you with an average cost for property taxes. A real estate agent can give you an idea of the going rate for commercial leases or residential opportunities in the area. The same process can be used to get an estimate on how much it will cost for you to relocate and live in a particular city.
Once you’ve got an idea of how much it will cost, you can review your finances to determine if you’re ready to move. You may need to take out a loan, eliminate some debts, or increase your savings to make things work. A financial advisor or accountant can be essential in helping you to assess the costs and make an informed decision.
Personal Preferences
If you’re going to be moving, you’ll need to consider your lifestyle and preferences. Remember, you and your loved ones will have to live here for a while. You don’t want to be miserable as a healthy work-life balance is imperative to your success. Before relocating, decide what your preferences are. Do you prefer to live in the city or the suburbs? Are you interested in a family-friendly neighborhood or more of a hipster community? What type of school system are you interested in for the kids? Will your significant other be able to find gainful employment?
These are all questions you need to be answered before making a final decision. While taking a few trips to the city you’re interested in moving to is highly recommended, resources like this SF moving guide can give you an idea of what it’s like to live there. They provide background on San Francisco (or the city you plan on moving to), moving tips, neighborhood descriptions, etc.
You won’t get far in business without taking risks. While relocating your company does have its challenges, it could also be just what you needed to excel. If relocating is something you believe can take your brand to the next level, it’s worth considering. Be that as it may, if you’re going to move successfully, it is imperative that you’ve done the research and made the necessary plans to reduce the pressures and accomplish your goals.