Business outgrowing your current building? Heres how to make the move

Business outgrowing your current building? Heres how to make the move

Nov 18, 2021, 11:16:59 PM Business

When your expanding company needs to relocate, you may expect a period of upheaval, interruption, and lost productivity. Here are 11 efficient methods to reduce the impact on your business—and its profitability—during this difficult period.

Take the initiative.

Many firms take far too long to make a decision. You've waited too long if staff are tripping over each other and can't find a peaceful meeting spot. It will be difficult to manage a problem-free shift and transfer to a new area at that moment. Wait until the staff is working in the hallways and inventory is piling up in offices before taking action.

"Delaying your space needs for too long might result in production errors, poor customer service, and significant staff turnover. It's a good idea to prepare ahead of time for your space so that it meets both your current needs and future expansion goals."

Keep an eye on your space requirements on a frequent basis, especially if they're changing rapidly—for example, due to expansion or new product lines. Start planning ahead of time, rather than when a lack of space is causing a disruption in operations.

Examine your surroundings

When you run out of room, look at your workplace to see if you can restructure it to make it more efficient.

Instead of investing $5 million on a new facility, you might be able to save $20,000 by reorganizing your area with an efficiency exercise.

Create a budget for your real estate needs 

When creating a budget for your real estate needs, the quantity of money you have available is perhaps the most crucial consideration when finalizing your choices.

Whether you rent or buy a new facility, set aside a considerable portion of your budget to cover additional expenses not covered by the base rent or building purchase price. Lease incidentals (utilities, insurance, and maintenance), renovations, and moving expenditures are examples of extras according to

Determine whether purchasing or leasing is the better option.

Determine whether leasing or purchasing is the best option for your company. This is a critical decision to make before you begin looking for locations.

There are numerous aspects to consider, but leasing may be a better alternative for you if you run a small firm with limited operating cash or one that is rapidly expanding with unknown future space needs.

Purchasing, on the other hand, is frequently less expensive than renting. It's a particularly suitable alternative for more established firms with plenty of cash on hand, as well as those with specific space requirements that necessitate considerable upgrades.

Go on a location hunt

Your budget will aid in the selection of a site. Consider accessibility for clients and suppliers, parking and public transportation, shipping and receiving convenience, neighboring services, zoning difficulties, and capacity to grow when choosing a location.

A common blunder is to overlook the demands of employees. Make sure you get employee feedback on potential locations. Take them to potential locations to gain their support for the transfer.

Effectively negotiate

To achieve a favorable lease or purchase agreement for the facility, it's critical to bargain well. Also, make sure you have the correct team of commercial real estate advisers on your side. A good business real estate lawyer is especially important.

When it comes to leases, you shouldn't just sign whatever the landlord hands you. Examine all ancillary expenditures and duties, such as utilities, property tax, insurance, and maintenance, in detail.

Perform rigorous due investigation prior to making a purchase. Obtaining environmental and building condition evaluations, obtaining an appraisal, performing a title search, and studying vendor papers, such as previous utilities and repair bills, are all examples of this.

Also, give the bank ample time to analyze the deal before approving financing; this can take up to six weeks.

Make a timetable

Collaborate with staff to develop a transition schedule. Renovations, transferring assets, setting up phones and Internet, buying new furniture or equipment, producing signs, and marketing your new address could all be included in the schedule. Determine who will be in charge of each task. Having someone in charge of the overall transition can be beneficial.

Stock up on supplies

You may wish to build up extra inventory before the transfer to guarantee that you have enough stock on hand to meet production and client demands.

Allow for extra time.

Transitions are frequently longer than anticipated. Businesses frequently underestimate production downtime during relocations, and renovations frequently exceed planned costs.

Businesses frequently underestimate how disruptive a change will be. Some changes can take weeks to complete before everything is in order. Others take weeks or months.

Consider making a staggered transition.

Consider keeping both spaces—the present and new ones—for a short time and shifting machinery and inventory on a staggered timetable to minimize the impact on workflow, according to one idea that appears to have worked for many organizations.

Communicate with others

Good communication with employees, customers, and suppliers is essential during the change. "Talk to them early about the change so that any concerns can be addressed before they interrupt your business.” Make frequent announcements about your goals, and be as specific as possible about what customers may expect along the road.

Published by Jacob Wolinsky

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