Many businesses are not successful because they are not located in the right area. It’s important that your business has room to grow and isn’t bombarded with competition. Moving could allow your business to have more market opportunities and could very well save you money in the long run.
After all, if another area has a higher availability of a product or a great economy, moving will make a huge difference in your financial situation. Although it seems like a very down economy right now, there are little areas of the country (and out of the country) that are booming and not bombing.
However, many business owners are hesitant to move because it can be such a financial risk. Moving is expensive, and if things don’t go right you could be in a lot of trouble. Not only that, but moving is a big deal if you have a family who will need to move with you. Is it really worth the risk?
The trick is to minimize your risks as much as possible by analyzing everything about the move. Some business owners see an opportunity and don’t realize that there are a lot of things to take into consideration before relocating. Consider some of the ways you can minimize your financial risk before moving:
Top 4 Ways to Make Sure You Don’t Lose Money in a Move
The first thing a company owner needs to do is look online for an area that they think will help their company succeed. Look at the number of community members, the growth, the school districts, etc. Once you really do your research, it’s time to actually go to the city and do some on-site research.
1. Talk with those living in the area you’re hoping to move
See if you can talk to local business owners in the area. Be honest with them and tell them that you’re hoping to relocate your business. They will likely understand the economy and the needs of the people in the community better than anyone, and will surely give you an honest answer (if you’re not a threat to their business!). Talk with them about the need for a business like yours, and see how they like living in the area.
2. Check out the competition
An area could have a great economy, but if there is a lot of competition for your type of business it’s probably not the best move. People in the community are probably already working with one of your competitors, and it can be very difficult to sway someone once they’ve made a decision. However, if the area is really growing then you may be able to nab some of the new members of the community.
3. Make sure you aren’t stuck in a lease in your current location
Many business owners are so excited about the possibility of relocation that they do not consider their current location. Even if you have decided that it’s worth the risk to move, you do not want to be paying rent in two different locations. This is one of the worst things you could do financially. Don’t get too excited and sign for a place assuming that they will let you out of a lease. In fact, in most cases they won’t.
4. Don’t forget about your current customers
It’s never a good idea to start your business completely from scratch if you don’t have to. You remember how tough it was to grab those first few customers, and it will be difficult even in a booming economy. It’s never easy to start a business, so ask your current customers and clients how they would feel about a relocation. Would they still work with your company? Do you have the ability to still work with those customers?
The biggest thing to remember about moving a business is that you’re doing it for the success of the business.
The town may be great, but it won’t matter if there is no room for your business to succeed.
It’s important to look at your finances and see if you have the luxury of taking a risk. Then, make sure you pick the right place by considering some of the tips listed above.
Photo credit: leticiahixson.com
About the author: Lawrence Murphy is a writer for CreditCardCompare.au/. The Web site gives financial advice to small business and entrepreneurs including how to reduce your credit card bills and succeed with business credit cards. You can visit the company blog The Credit Letter for more information.