Relocating to another office can have many benefits. One of the biggest reasons for moving to another office is reducing overheads. However, as many companies discover, moving to another office can also come with its fair share of extra costs. It’s important to weigh up these costs and savings to make sure that an office relocation is an economical solution.
What are the costs to consider?
Some of the biggest expenses to consider when moving to another office include:
Moving costs
You will typically need to hire an office removal company when moving to a new office. The cost of this can vary depending on how much stuff you have to move and how far you are moving. Shopping around can help you to find the cheapest rates, but make sure to also look at reviews so that you hire a removal company that you can trust.
Renovations and furnishings
Your new office may need to be refitted to suit your needs. This might include buying new furniture, laying down new flooring or repainting the walls to reflect your brand. Commercial premises like shops and clinics may need extensive renovations. Make sure to budget for these costs to determine whether a move is worthwhile.
Business downtime
Many companies need to pause operations during the move. This could result in lost revenue. Of course, it may be possible to make up for this by increasing marketing or production before or after, or by allowing employees to temporarily work from home during the move.
What are some of the potential savings?
Moving to another office could result in some of the following savings:
Lower rent
Relocating could be a chance to move somewhere with lower rent. For many businesses, rent is one of the biggest overheads – reducing this expense could mean more profit in the long run.
Lower energy bills
The location, design and size of an office can also influence its energy usage. It’s possible that you may be able to therefore reduce energy bills by relocating, which could also greatly improve your company profits.
Boosted productivity
Moving to a new office could boost productivity and potentially boost revenue. For example, an open plan office with lots of natural light could improve communication and morale, which could lead to better work results. A reduction in wasted productivity is a harder saving to measure, but it is an important one to consider.
Should you move to a new office?
To decide whether moving to another office is financially sensible, come up with a breakdown of the costs and compare this to the long-term savings. Many office relocations are good investments in the long run, but it depends on where exactly you move and the type of office you move into – some locations and buildings could have more expensive rent and energy bills, but could allow for greater future growth. Only by going through your figures and assessing your company goals can you work out what is a good investment.
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