Top Advantages and Disadvantages of Relocating A Business

Advantages and Disadvantages of Relocating A Business

The business landscape changes every year. So to adapt to the new environment, many business owners want to start fresh in a new location. However, these changes have both positive and negative impacts.

That’s why you should research properly and be very sure about your decision before deciding to move on to a new place. This article will highlight the advantages and disadvantages of relocating a business.

So, after reading this, you can confidently come up with a decision.

4 Advantages of Relocating A Business

First, let’s go through the positive impact of the business relocation.

1. Better Location Secure More Business

Your business location is a crucial factor that can make or break your company’s success. There are some signs that indicate whether a place is business-friendly or not. The most common ones are – transportation facilities, booming commercial areas, lower crime rates, etc.

A better business location can boost your business performance within a short period. Hence, it’s wise relocating an office to a good place as soon as you can.

2. Access to More Potential Customers, Employees, and Vendors

Access to more opportunities is also one of the key reasons for the relocation of the business. Most businesses think about changing their existing location when their sales are going down.

At this stage, moving into a new place can attract new customers/clients, vendors, and talents.

Moving to a prominent demographic is a worthy decision that a business might take.

3. Minimize Operating Costs

Many business transfer from one place to another because of a cheaper rate. Picking up a cheap place has some risks, though. You might move into such a place that is not good for business or have other issues.

That’s why you must be extremely careful about the cheap space.

4. Improve Facility

Why do businesses relocate? Another answer to this question is to upgrade facilities. Your current business place may be outdated that can’t fulfill your requirements.

In this case, a new place provides more opportunities to upgrade your facility

5 Disadvantages of Relocating A Business

Disadvantages of Relocating A Business

As like the other side of the coin, when you are thinking about relocating a business checklist, you need to keep the negative sides in mind. The negative sides are stated below:

1. Disrupting Your Business

Moving isn’t an easy task. It needs a whole bunch of hard work, time, and money. One of the biggest disadvantages of moving a company is that it increases downtime.

However, this production loss can be minimized if you continue your business operation in both new and old areas during the transition. Reliable corporate relocation companies can help you with this.

2. Moving Expenses

Moving not only disrupts your business but also takes a lot of money in packing, transporting, and preparing a new location setup. All these steps need a considerable amount of cash.

If you don’t have enough budget, you should rethink the move.

3. Chance of Losing Existing Customers

If your business moves far from the existing location, there is a high chance you will lose your old clients.


However, some clients may go back to you after a while if they like your service for real.

On the other hand, you can always encourage your new customers by giving discounts and other offers. So even if your business faces a decrease in sales for a period, you can overcome the situation with perfect strategy.

4. Risk of Losing Labour

Sometimes your old employee might leave the company because of the new location due to long distance or any other issue.

5. New Environment

Your business might have new rules and regulations that affect your business cost or the way of conducting it. These have both positive and negative impacts on your business.

To overcome this problem, you should gain precise insights about the new location before moving in.

Final Words:

You see, there are both advantages and disadvantages of relocating a business. As a result, you have to give a lot of thought while transferring your business location. Your business can relocate smoothly with Easyway Removals‘ man and van service if you need to relocate.

Hopefully, this article will help you to take a solid decision that is suitable for your current business status.


Check out the below most asked queries in case you have any doubts in your mind to clear up:

1. How do I move my small business?

Moving your small business is a challenging task. But it can be a lot easier if you do the followings.

  • Set your budget and decide whether Research the location thoroughly before deciding to move.
  • Create a fresh business plan based on the new location.
  • Keep your employees and clients updated about the move.

2. What are the disadvantages of relocating a business?

Below is a list of the disadvantages that you can face while relocating your business. The most common ones are –

  • Loss of clients
  • Expensive moving cost
  • Getting out of a familiar zone
  • Risk of losing employees
  • Delay the flow of a business due to new environment and regulations
  • Loss of productivity introduces business interruption costs.

3. Why would a business want to relocate?

There are mainly 5 reasons why businesses relocate their location. They are –

  • The current facility does not provide enough space, but the company needs expansion and growth.
  • Moving to a new location reduce rent cost.
  • Some companies may have extra space than they need, so they want to move to a smaller space.
  • The lease expires, and the company finds a better facility.
  • Access to new consumers and markets.

What do businesses look for when relocating?

Businesses usually look at some factors when thinking about relocating. They are – cost, the impact on the employees and the stakeholders, taxes, clients’ impact, growth capabilities, and community impact. You know, the decision of relocating a business has a huge impact on every related people.

So, check out these factors thoroughly before making your decision.

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