The positives and negatives of corporate relocation
Moving business locations is not something that should be taken lightly, but it can have many positive impacts on the company if it is carried out in the correct manner.
However, care is required as it is possible for costs to quickly mount up while staff might not want, or choose, to move to a new location.
Cheaper running costs
If rent for property is high or running costs are proving to be too much, moving to a cheaper location could provide an alternative for a business meaning costs can be managed more effectively.
Rents and local business rates will play a key part in this decision, while a company’s consumers must also be given consideration.
At the same time, consumer interaction can be increased via a move as a greater number of people can be exposed to the business in question.
The cost of moving
Moving away from a customer base can sever links very quickly, while moving nearer to customers can have the opposite effect.
At the same time, the costs of transporting goods from one office to another must also be considered while costs will be intrinsically linked to the size of the company in question.
Retaining staff
Switching location can pose a problem for the staff within a company, especially those that commute large distances to get to work.
If those distances are increased they might be forced to consider their positions or they might be unable to continue working for a particular company altogether.
In the latter case, additional training and costs associated with hiring new staff could negate any potential savings of a move.
Alternatives to relocating
There are plenty of things to consider regarding corporate relocation, but the potential for cost savings makes it a viable option in many instances.
For companies choosing not to move, corporate restructuring of the business can be an alternative way to reduce costs as unnecessary spending can be managed more effectively.
Careful and well though-out management processes can mean each individual company undertakes actions which will be most beneficial to it at any given time.
By Phil Smith