The Hidden Costs Of Relocating Your Company
All entrepreneurs and business owners must think long and hard about the costs involved in relocating their company before pushing ahead. There might come a time when your organisation expands, and you need extra space to complete all those customer and client orders. If that happens, it is essential that you conduct a lot of research and leave no stone unturned. The last thing you want to do is run out of money or get into debt.
There are some expenses listed below that you will need to consider if you plan to grow your firm and relocate to a more favourable address this summer. Be sure you read this post carefully to ensure that you don’t make any mistakes.
Loss of earnings
Firstly, there is no getting away from the fact that you will probably have to wind down your operation for a few days when you decide to relocate according to Finance Nine and similar sites. That is because you will need all hands on deck. However, it is sometimes possible to leave a skeleton crew at your old premises, so you don’t have to close your doors entirely. Still, it stands to reason that you are going to lose at least some income and profit during that process. Maybe you should think about closing down for a couple of weeks and relocating while your employees take a holiday? That is often a wise move because it means you can plan for the loss of earnings and predict how it will affect your balance sheet.
Property rental or purchase
Secondly, you are probably going to have to pay a lot of money for the new premises you rent or buy. If you plan to purchase your building outright; you have to think about the cost of commercial mortgages. That could mean you have to pay a fee every month that you must consider when determining your budget. Most business owners and entrepreneurs rent their premises these days because it is convenient to do so. If you opt for that solution, it is critical that you don’t overlook real estate agent fees and any potential legal costs. You can find out more about that by contacting commercial real estate agents in advance and asking about their charges. Make sure you select the most desirable locations when it comes to looking for the perfect new office or warehouse.
Getting the building ready
There is a decent chance you will have to spend money and make adjustments to get the new premises ready for your operation and employees. Experts from http://caslec.com.au/ and other sites claim that electrical installations are usually the most crucial part of the process. So, you will need to work out how electricians can assist in getting your building ready. Maybe you need lots of new power points in different areas of the office? Perhaps you need someone to install lots of data cables for your computer network? Those are all things you will need to think about and arrange before you can start working and earning a profit from your new base.
Purchasing insurance policies
All business owners have to buy insurance policies to protect their premises and anyone who works within it. No entrepreneur wants to end up in the courtroom because they failed to purchase the correct policies for their workplace. That is why you might like to get in touch with a business advisor and ask for some tips. The insurance companies will point you in the right direction, but they will also attempt to sell policies you do not require. Also, you’re going to negotiate excellent prices if you have a basic understanding of the various insurance types and which is most suitable for your brand. Get all the policies from the same provider for the best deals.
Unfortunately, your office furniture, warehouse racking, and any offer assets are not going to relocate themselves. You can’t ask your employees to do the hard work because that job probably isn’t mentioned in their contracts. So, unless you have an excellent team that is willing to go above and beyond the call of duty; you’re going to need a hand from the professionals. There are lots of commercial removals films out there, and you probably need to get in touch with one that owns and uses a lot of trucks. Get quotes from multiple firms and then use those figures to negotiate a decent deal and drive prices down. In some instances, the cost of moving could become significant if you plan to relocate hundreds of miles away.
Updating your details
While this task doesn’t require you to spend money, it could still have an impact on your balance sheet. That is because it will take a long time to get in touch with all your contacts and ask them to change your address and telephone number. Firstly, you’ll have to call the bank and change everything there. You will then have to contact your legal team and ask them to make the appropriate changes. Suppliers will need to know the new address because otherwise, they won’t know where to send your payments and invoices. Customers will need to have access to the new address too! Do yourself a favour and write a long list of everyone you need to contact so you can work through it and save as much time as possible. When all’s said and done; you’re an entrepreneur, and so time is money!
Now you know about some of the hidden costs of relocating your company this year; you should manage to make accurate predictions and ensure you have enough cash in your accounts. Bear in mind that unexpected things happen all the time, and so it’s sensible to keep a rainy day fund in case you encounter expenses overlooked on this page. So, you can now sit down with your managers and associates to discuss the idea of moving to new premises. Just ensure you don’t jump the gun. Never expand or relocate until your business is ready to do so. You can’t force these things.
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