Location of your business directly affects its performance depending on what type of business you are running. Locating in the right area will bring about positive growth whereas unsuitable location can really provide negative impact. New setups often locate in low-cost areas where they are cheap rents and accommodations for the labor but as the business begin to affect adversely the concerns of relocation seems to derive. Relocating the entire business can be another factor of concern as there are risks involved when you change the business address. Relocation means you have to give up few things your current location is providing at ease. Every location has both negative and positive aspects and so you have to on look carefully what you want to achieve in a new location of your business. Although changing the current business address means –

You will have to lose some employees

Sometimes the convenience for you might mean inconvenient for your employees. Employees might feel they cannot move to the new location or wouldn’t want to move from the current location for various concerns and if an important employee feels uncomfortable in moving you might lose him. One such employee is not an issue but a number of employees who feel that moving means finding a job elsewhere you are in the loss for relocation rather than benefiting from it.

Moving costs are high

Depending on the operation of your firm moving costs can vary thus when you are moving the cost-benefit analysis should be conducted. If the operation of your business is easily mobile then moving cost might not be high but if you are thinking of moving an entire factory be prepared for high costs. Often the new place will have a higher cost to operate compared to your previous site whereas if you are moving to a low-cost location your only concern might be the moving cost.


Change in the ambiance

Depending on where you are moving there will always be a change of surroundings around your workplace. This will vary upon the distance you are moving to; moving from one city to another might only bring about change in the weather or traffic. Moving from one country to another will change a lot more like accepting a few cultural consents, work ethics, rules and regulation, minimum wage, working hours, taxation etc. whatever country you move in there will be different concerns you might want to consider like persuasive advertisements in some countries are illegal. If you can cope with the flexible transition required when relocating then it is not something to worry about.

Relocating will provide beneficial for the business’s long-term goal

If you are relocating your business by keeping only short-term concern in your conscious then you will have to reconsider. Moving your business because of high operating cost while your long term goal is innovation rather than profit means you are away from your goal. If high operating costs providing you good in terms of innovation then moving is an illogical concern.

Moving the entire business to a new place

Relocating your business is one of the most important decisions that have a direct impact on the business growth. Entrepreneurs conduct cost and benefit analysis before making such risky decision but there are always hidden costs to a new place. Growing your business by opening a new office or operating branches in different cities around the world is one thing and moving the entire operation to a different place is another scenario. Changing your business address will have both pros and cons attached to it and so such a decision should not be taken immediately. There are a lot of reasons why entrepreneurs feel that the grass is greener on the other side and so they move the business to the desired location. There are a lot of reasons why moving the operation of the business to a new place and reasons might include:

Cost reduction

Moving to the place where overhead costs are less so that the capital invested is used for maintaining the returns instead of paying bills.

Labor intensive firms will have labor as its most significant cost and so such businesses would always look for low-cost labor sites.

Some locations are in posh areas of the town that have an extra luxury cost attached to it. Some firms are ready to pay a high cost for accessible locations or landscape views like a hotel or a restaurant. Whereas a clothing retailer doesn’t necessarily need to be located in the midst of beautiful scenery and will always move to a place where the rent is lower.

Move to grow

Relocating your business to an upgraded place is directed towards business growth. Entrepreneurs that have started their small firms from low-cost sites would want to move their operation to better locations. Moving to sites where they can access the extensive market.

Better equipment and facilities

Sometimes a site that seems to be low in rent has other hidden costs like transportation cost and high maintenance cost of the factory. Such costs have a direct impact on the revenue of the business and so smart entrepreneurs make choice to move where there are better-upgraded operations and accessible transportation.

Moving from one place to another is whole a lot of work which takes months to complete and settle for. During this process sometimes the owner has to operate both the new site and the old site until the process is successfully completed. Moving your address will have a huge impact on your clients and customers. You may lose some of them when you move to make sure your decision to move won’t be under the risk where you might lose all your important customers. Although such risks are involved varyingly on the type of business and its operation like if the organization has decided to change its target audience then losing the old customers will not be considered a risk. If in case the business wants to keep the customers it is important to let them know about your decision prior to carrying it out and record their feedback.

Selecting a New Place to Relocate Your Business

When a business is being relocated to a new place the choice of new site is to be carried out very carefully. There are a lot of considerations to carry out before selecting the new place to relocate. You need to consider the demographics, supply chain, competitor’s location, State laws, taxation, employment in the area etc. under the influence of all such constraints the owner of the business analyzes the decision to move to a particular site. For some type of business, it is important to be located near to their competitors for healthy price and marketing wars whereas some businesses want to be a monopoly in the area so that it takes over the entire market. Mostly any type of business should consider the following basic matters before selecting the new location:

What image do you want to create?

Relocation of your business will have a direct impact on the customers, shareholders, employees and competitors of your organization. When selecting a new location you should analyze the image the new location will have on everyone. Relocating to an accessible area will create an image that you are ready to grow to be into access. Moving to low-cost areas will create a positive image in the mind of shareholders and employees as the low cost will mean more revenue. Locating near to your competitors will provide them to think you are ready for some mature competition.

Long term goals

When selecting a new site always keep in your mind the long term goals of your firm, if the relocation is taking you away from the real aim of your business would you consider the site? Just for a better image or cutting costs, you cannot put your image on the risk in front of the shareholders. In case your business is not a profit led organization relocation in a low-cost area can be considered. If your long term aim is growth you need to relocate towards a site that is the center of the market so that you can cover the wider demographics.

Type of product or service

Relocation without considering the type of business you are will bring great risk. On the basis of the product or service, you are delivering to the type of market and the width of your demographics you have to select the new location. Opening a restaurant in an area where there are other shopping retailers is a good idea. You don’t want your wholesale business in the posh area away from your customers. High street brands want to maintain their image thus relocating in a prestige location suits the type of operation it runs.


No matter what type of business you are and what your goals are or wherever you are moving your business the cost of relocating is always there. Other than that the site you have selected to move will have costs attached to it, some very obvious while other more hidden. When selecting the site to do a research by asking the businesses already set there about the costs attached to the site.

Often times you can save the most money by submitting your change of address online but you can also file in person at the post office.