How to Conduct a Business Relocation Analysis

A business relocation analysis looks at several different factors that will affect a company's decision to move to a different location. When you conduct a business relocation analysis, you will be able to determine whether or not it is the right time to move your business in order to position yourself better in the marketplace.

Instructions

1. Start conducting a business relocation analysis by first looking at the physical condition of your present facilities, such as if the building needs excessive repairs or is in danger of being condemned. If the landlord is not doing his part to maintain the property, then relocation may be the solution.

2. Consider the current leasing or ownership status of your company building when you conduct a business relocation analysis. Many companies decide to relocate when their leases are up for renewal, especially if they are considering an expansion or downsizing. In addition, the increase of property taxes on an owned property may prompt a business to consider relocation.

3. Look at the geographic area surrounding your company when you conduct a business relocation analysis. If the neighborhood is deteriorating to the extent that your customer base is affected and people are reluctant to visit your facility, or if land development has simply shifted traffic patterns away from your neighborhood, then relocation should be your primary option.

4. Conduct a marketing analysis of other trade areas that may be flourishing, and decide whether it would be advantageous to relocate your business there. A neighborhood renovation project, for example, may offer financial incentives in the forms of grants and loans, and an increase in customer traffic due to excitement about the project.

5. Hold a company meeting and ask your employees and management staff how they feel about relocation. If a significant percentage of your staff is against such a move, then you will need to weigh the costs of re-staffing and training in your business relocation analysis.

6. Examine the financial strength of your business, and determine if you can absorb the costs of relocation. While it is certainly possible to borrow money to finance the move, it might be to your advantage to wait until you can move without incurring more debt.

Tips & Warnings

• Consider whether you should hire a business relocation consultant to prepare an analysis for you. These consultants specialize in breaking down the costs of relocation, and helping your company to determine the best possible move.