Thinking of relocating your business to one of the top cities for quality of life in the United States? Here are the current and future financial implications of business relocation you need to know.
Have you been considering relocating yourself and your business lately? US World News & Report recently released their top 25 places to live in the United States for quality of life, and from coast to coast, these are all wonderful locations to consider. (We were especially thrilled to see just how close the #1 spot is!)
But whether you’re motivated by quality of life, family, business opportunities, or a bit of all three, relocating your business can be a great opportunity for growth and expansion - while also being a bit daunting. Before you start packing, there are several financial implications you need to consider, both current and future.
For starters, relocating your business can mean several different things. You might simply be considering a switch from an office downtown to the suburbs. Or you might be moving from city or city, either within the same state or across the country. Or maybe you’re considering relocating just part of your business while keeping ownership of the original location.
Current Financial Implications
Whether near or far, the many costs of moving your business can add up quickly:
Moving, setting up a new physical office, and potentially hiring new employees
Rent, utilities, shipping, and wages could all be impacted
Startup costs such as lease deposits, furniture, and equipment will have to be covered by sales revenue
With all these elements in mind, it’s important to have a solid financial plan in place before making the move.
One way to offset the cost of relocation is to take advantage of tax incentives offered by the state or city you are moving to. Many states and cities offer tax breaks and other incentives to businesses that relocate to their area. These incentives can help offset the cost of relocation and make the move more financially feasible.
An experienced financial advisor like Washing Avenue Advisors can help you determine what tax incentives your business might be eligible for.
Another way to offset the cost of relocation is to sell your current office space. Depending on the location and condition of your current office space, you may be able to sell it for a profit. This can help offset the cost of setting up a new office in your new location.
Future Financial Implications
The future financial implications of business relocation include the potential for increased revenue and growth. Relocating to a new area can open up new markets and opportunities for growth. It can also help you attract new talent and expand your customer base.
There are also other things to consider:
The new location has the possibility to increase or decrease overhead costs by changing leasing payments, utilities, etc.
Relocation can lower operating costs by 20 to 30 percent, which can help optimize the financial, labor, and productivity investment of the company
However, it is important to remember the potential risks and challenges of relocating your business. For example, you may face increased competition for clients or customers in your new area, or you may have difficulty finding qualified employees. It’s critically important to have a solid business plan in place to mitigate these risks, and ensure the long-term success of your business.
Wherever you decide to go, relocating your business can be a great opportunity for growth and expansion. However, it is important to carefully consider the current and future financial implications of business relocation before making the move.
With the help of a trusted partner like the team at Washington Avenue Advisors, you can be sure you have a solid financial plan in place before the moving vans show up, making the move more financially feasible and ensuring the long-term success of your business.
Ready to begin preparing for your business relocation? Reach out to our experienced team today. We’ll give you a plan, and guide your decisions so that you’re confident in your financial future.