The dos and don’ts of moving your business to another town
Moving your business to a location up the street is already a tricky affair. Moving to another city or town brings with it a whole different set of challenges and it’s not to be underestimated. Consider these points prepared by Digicash to ease the transition:
Do understand the consequences of your move
Preparing your business for what lies ahead will require market research, market research and more market research.
A product flying off the shelves in Port Elizabeth might not enjoy the same success in Cape Town. Be wary of moving your business to a town because it’s “where the money is”. Make sure you understand your new target market and what they want from your product or service before making such drastic change.
Do research your competition as well. Are there any businesses similar to yours in the new area? To ensure a client base, choose a location where your product or service has a demand and a lack of supply. Investing in some pre-emptive marketing is also crucial.
Do be realistic about costs
Make cash flow projections based on real figures and consider the risk before you start packing. Besides the cost of relocating, you’ll have to factor in the time you’ll be out of action due to the move and lower revenue for the first few months while you build a new client base.
After the initial impact on your finances, a new city might be more draining on your usual resources. Johannesburg, for instance, is an expensive place to live. Will your projected sales in this area cover increased living costs?
Don’t leave your employees in the dark
If a particular employee is crucial to your business’ wellbeing, consider making it worth their while to relocate with you.
If you have to let people go, do so by the book and notify them as early as possible for the sake of finding new employment. Your move will be a scary and inconvenient time for employees. Be sensitive to their needs and always keep them updated with your plans.
Do admit when you need help
Relocating the business, employees and your personal residence simultaneously is a massive challenge. In addition, the expense of multiple moves and lost business during transit can accumulate to a small fortune. Luckily there are corporate relocation companies who specialise in co-ordinating a large move. By calling in the professionals, you’ll be ensured of a much smoother and faster transition.
In addition, you may have to change suppliers, banks, service providers etc. The ones that you can retain will need to be notified of your new location and details. Getting some extra hands in to deal with the bookkeeping might save you a complete mental breakdown.
Do consider whether moving is a must
Before putting your business, yourself and your employees through the drama of relocating, consider opening a second branch in the new location instead. Who know, this might be the start of your multinational corporation.