How to calculate business relocation costs?

Business facility.

Is your business in a rut? Do you feel like a move might be a good solution? Moving your business is just as hard as it sounds, but it can really be a boost! And at the end of the day, every business comes down to numbers. So yes, you’re going to want to know exactly how much a move will cost you. Don’t worry though – if you need a reasonably priced moving company visit, and we’ve got some on advice on how to calculate business relocation costs right here!

Is moving your business a good idea?

So you’ve been bouncing the idea of moving your firm around your friends and coworkers? There’s one thing to do before you learn how to calculate business relocation costs. You should really take a good, hard look at your employees, your finances, and your company as a whole before making this decision. This is an office – it can be even harder than planning an international relocation. We cannot overstate how important it is not to take this decision lightly. So ask yourself – is relocating really a good idea?

Question mark.
Is relocating your business really a good idea?

Get your yellow legal pad out and do an honest list of pros and cons. First of all, what is it that made you consider moving in the first place? Is your current market just not a good fit for your business? If so, is there something you can do about that before doing a complicated relocation? Can you change your business model to better suit the market climate? Consult with coworkers, employees and other professionals about this. Maybe there’s something cheaper or less complicated you can do instead of moving your entire business? Really, you’ll want to be really sure about this even before you move onto the finances.

Choosing a new location for your business

Have you taken all the factors of moving into account and made the final call? Way to go! Now comes the harder part of how to calculate business relocation costs – choosing a new location for your company. This can be even harder than making a new life in a new house. Here’s a little tip – the key to finding a good new location for your business is thoroughly examining the old one. Yes, you’ve heard that correctly. Take a big step back, and make sure you’ve really figured out what was wrong with your old location in the first place. Why did you need to relocate – what drove you to the decision? If you analyze your old place of business and single out every factor that made you move, you’ll know exactly what to avoid in your new location.

Team meeting.
Choosing a location will require a team effort!

Was the office space too expensive? Or worse, was the local market not favorable to your company? Were you not satisfied with your clients in general, or maybe your suppliers? Was the local economy stagnating, or even in a downturn? Were your problems something else entirely? Regardless of what they were, you’ll need to know every last detail if you want to avoid past issues in your new place of business.

How to calculate business relocation costs in advance?

After analyzing what you need out of a new business location, it should’ve been much easier to choose one. If you’ve made your choice, it’s time to really get into the nitty-gritty of how to calculate business relocation costs. Really, the key to a successful business move is to predict all of your moving expenses well. From the major bills down to the last paperclip, ideally, you should make a good prediction. You’ll want to know exactly how much money you’ll be spending in advance. Listing your major expenses will actually be the easiest part – these are obvious things about your business you’re always aware of. But the devil is in the details, so here are a few reminders about the process of making your business relocation budget:

  • Inventory – This is the most obvious thing to do. You’ll want to create the most detailed inventory of your company you’ve ever made. All your physical possessions and assets will have to be listed. This way, you’ll know what to move, how much it will cost to move it, and what you can sell and get rid of. And if you need more space, you should consider renting a storage
  • Employees – Make sure you include your staff in the process of calculating moving costs! Chances are, there are things about your company you’ll forget and they’ll know. Also, you’ll want to include them in the planning phases, because you will all need to calculate how much the move will disrupt your usual business dealings.

Contact other businesses – Chances are, you’ll need to let your clients, distributors or suppliers that you’re relocating on time. Not only is this proper business etiquette, but this will also let you know about additional costs that come with severing those business ties.

Hiring professional movers

Moving a household is definitely a chore, but relocating your entire business? Now that’s one of the most stressful things one can imagine! Relocating a business comes with all the details and stress of moving your household, but multiplied by a hundred! You’ve got all of your office equipment to think about, and other company property as well. Depending on your business, you can be dealing with everything from office supplies for management, to heavy machinery! By now, you must’ve realized that doing this by yourself would be madness.

We know you want to know how to cut your moving expenses, but hear us out. Instead, hire some professional movers, to maximize the professionalism of your business relocation while minimizing the risk. If you choose the right moving company, you’ll reduce your moving-day stress a lot. There are professionals out there that know exactly what a business relocation entails, and they’ve done it a million times.

A woman planning.
Cutting costs on a business relocation means a lot of work!

We hope we’ve given you some useful tips on how to calculate business relocation costs. In the end, remember to run this operation just like any other business plan. If you evaluate your expenses carefully, manage your budget tightly, and oversee the execution as close as you can, you’ll have nothing to fear. Just don’t be afraid to tackle the problem head-on, and soon your company will be prospering in your new, more suitable location.

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