Relocating a business is often a tough undertaking, with many businesses preferring to use it only as a last resort. This is quite understandable owing to the enormity of the task as well as the huge costs involved in such an undertaking. There is also the issue of additional logistics, time consuming planning, and the extra demands that arise as a direct result of the planned relocation.
There are also considerable risks involved that stem from a business relocation that can have a tremendously negative impact on the business. For instance, there is the high risk that a shift in location might result in a loss of customers, and market share. There is also the prospect of losing some high value employees when relocating, probably because their families are at the current location, and the employees would not want to be separated from their families.
Other risks involve going tremendously over the budget because of the relocation turning out to be more expensive than anyone had anticipated, as well as the risk of losing valuable items during the actual relocation.
With all of these risks in mind, most businesses shy away from a business relocation unless it is absolutely necessary. However, when done correctly, and at the right time, a business relocation can have tremendous benefits for the company. In addition, when all of the right steps are taken in reference to a relocation, all of the risks mentioned above, are minimized to a point that they are no longer a threat to the stability, growth, and success of your company.
With that in mind, the following are some of the reasons you should definitely be looking into undertaking a business relocation.
- Getting closer to your clients
The most important reason for a business to move to a new location is to get closer to its customers. If you find that your sales people have to travel long distances in order to reach the target market, then a relocation is the ideal solution for your business. The same case applies if your customers have to travel a considerable distance in order to be able to conduct business with your company.
The general rule of thumb in business is to be as close as possible to your target market. This way neither party is inconvenienced trying to get to the other.
For instance, if your target market is rich or middle class European clientele, then you need to be right at the centre of this action, geographically speaking. In such a situation, a Business relocation to Switzerland would make the most sense because of its central location in the continent, and its shared boundaries with European countries that have the highest levels of disposable income.
Proximity to your clients as well as high quality products will always give your company a competitive advantage over similar firms within the same market.
- Capturing emerging markets
Another core reason for a business to relocate is to capture emerging markets in new locations. If the market at your current location has become saturated with businesses that offer the same products as you, your sales are bound to suffer causing your profit margins to reduce. To avoid the trap of market saturation and dwindling sales, it is imperative that you identify new locations that have the potential of becoming emerging markets as quickly as possible before your competitors do the same.
Grab the opportunity, and relocate your business as quickly and as efficiently as possible in order to capture the emerging market, and gain a competitive advantage over your competitors. Usually, the first company to start operations in a new market, will continue to dominate the market even when other companies begin to operate in that market.
With the above concrete reasons, you should definitely start looking into relocating your business.