Business expansion is the goal of many companies, but it often requires a change of location to accommodate the extra employees, materials, equipment and other resources.
Although deciding when and how the company is going to relocate is important, the actual location should be the priority. There are various reasons for locating to a new area, including moving the company to larger premises and opening an additional branch.
Do your research
Finance is a priority in most cases, with the cost of rent and other overheads being the largest outlay for many companies. Some areas will be more expensive than others and this should be factored into any decision. Some types of company will need to be based in an upmarket area to reflect the trade, such as a solicitor who wants to portray a professional image. Check out the competition in the area too, to see whether an established company offering the same service or product already exists. A management accounting service will be able to help you create a viable business plan and the most suitable location.
Factors to consider for a new location
Be on the lookout for the sites with the cheapest premises, as the rent is likely to be lower. The workforce is another factor, as the business will need access to a specified skill set that may not be available in some areas.
The location must also be easy to reach for employees and customers too. If a delivery service is a large part of the business, the best location may have excellent transport links with convenient access to road and rail. The availability of broadband may also be a factor, as some areas still have poor coverage.
Other businesses in the area
Consider the other companies set up in the vicinity already, and don’t just view them as competition. Would the other businesses generate any business for you? Or maybe one of the local companies could become your supplier, reducing transit times and possibly costs? If there are other businesses in the vicinity of your proposed location, do they offer anything of value to your company and its customers and workforce? For instance, you may be sited close to a daycare nursery, which might be convenient for some of your employees.
Selecting the most suitable business location is an important decision, as it will have long-term effects on your company. If you would like to speak to us about any concerns, please get in touch and we’ll arrange an informal meeting.