There are times when downsizing a business space makes perfect sense. Maybe your production has suddenly slowed down, for instance, and your space is just too big for what you need or too expensive at the moment. Or maybe you have moved a portion of your workforce off-site and don’t need as much space anymore.
In some cases, moving could be your best and only option. But you have to consider if now would be the right time to move, or if there are other options you may have not considered. Here are some things you need to think about before you move your business to a smaller location.
Can You Rent Out Portions of Your Current Building?
If you own your building, then you might want to consider subdividing it and renting out space instead of moving. This would remove some of the complications of changing addresses, allow you to keep serving the community you’re established in, and could provide you with additional sources of income.
Another reason why this could make sense is that you never know what could happen with your operation a few years from now. Things could suddenly pick back up, and you may regret your decision if you’re now stuck in a smaller space that can’t accommodate the increase in demand. So, it would be a good idea to look at your property and see what you could do with it instead of selling and moving somewhere else.
If you do decide to become a landlord, start learning about mixed use building insurance and how you could get the best quote possible on it. Mixed use building insurance is for people who want to use their building for multiple uses and want to rent parts of it. It will keep some of your assets and building protected, as well as provide you with a certain level of liability protection.
Before you decide to move to a new place, make sure that you consider how it will affect logistics. If you are currently in a central location, for instance, and you make all the deliveries, then you have to consider how much more you’ll have to spend on things like fuel if you decide to move to an area that is not as strategically located.
You have to look at where your employees live too and see if the move will complicate their commute. If any of them take public transit and they now have to pay extra just to get to your new location because it’s out of your city’s limit, then you can expect some of your employees to not be very pleased and even leave.
The True Costs of Moving to a Smaller Location
You also have to consider the true costs associated with moving to another location. Sure, you might pay less for the spot, but what happens if your sales drop because you don’t get good foot traffic? You also have to think about all the clients you are leaving behind who might never come back.
These are all things you need to think about before you decide to move to a new, smaller location. It might have some apparent advantages, but is not always the best choice, so think twice before making your move and look at all the possible options first.
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