Reasons for Factory Relocation
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Reasons for Factory Relocation
Relocating a business is a process that must be undertaken very carefully. While there may be advantages in changing location, determined perhaps by a projected customer growth and business development, there are also inevitable pitfalls.
It is essential to consider what impact this may have on existing customer relations, as well as the potential disruption/loss for valued employees. A solid relocation plan is essential to evaluate the costs and risks involved compared to the advantages.
Never forget that the bottom line has to be the be-all and end-all. The economy will always fluctuate, as will trends and customer demands. When undertaken appropriately, a good business will potentially flourish following a successful change of location. But if the decision is made to go ahead with relocating, be sure to consider these crucial factors.
Are you going to be able to hire replacement/additional employees that meet the calibre of expertise necessary for your business? It is essential to factor in the availability of these individuals in the area you are considering moving to. Many companies find that due to expansion, they can't attract enough skilled employees, so decide to move to industry hotbeds to source new staff. A sensible idea would be to look towards where people train for your particular industry and will be looking for appointments with a company such as yours following their graduation.
Successful small businesses are sooner or later going to need to relocate to new facilities that can match the expectations of demand. It is the only way for a company to truly develop, and underpinning this is access to utilities as much as space. Successful small businesses are sooner or later going to need to relocate to new facilities that match the expectations of demand. It is the only way for a company to truly develop, and underpinning this is access to utilities as much as space.
For instance, if your call centre is unable to cope with incoming calls, but you can't expand the workspace any further. Each missed call is money down the drain. The same is applicable for any other industries where orders can't be undertaken due to limited capabilities. On the other hand, perhaps the existing premises are in poor repair or the rent is simply unrealistic. Relocation can be a real lifesaver under such circumstances.
People move, and districts change. Eventually, you may find that it is necessary to move to be closer to your clients. Usually, this occurs because the existing location is degrading and therefore, existing customers are deciding to move away themselves. There is little point staying 'loyal' to an area that is slowly being drained of customers. Look towards where they are moving - and also examine the potential for shifting to new pastures that are home to future clients. Ideally, you will be able to retain former business partnerships while also sourcing new opportunities.
Consider Tax Incentives
It is pretty rare for taxation to be a welcome asset in the business world. Consider the potential for saving considerable sums by relocating to areas where local authorities are providing incentives. These can range anywhere from standard property tax abatement through to sales tax exemptions and income tax breaks.
The ball is in your court here. If you can explain how it will assist and encourage your relocation, it may even be possible to negotiate redevelopment or improvement in local infrastructure. In unusual circumstances where the offer is too good to turn down, this will be the number one reason for moving - but don't rule out the advantages it may bring.