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8 Pros and Cons of Relocating Your Business From The East Coast to the West

By: SmallBizClub

 

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Moving your business from one coast to the other can be daunting, especially because such a move is more than only about finding a new business location or headquarter. You also have to consider all the business changes you will have to make as your business moves from the east to the west coast.

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This article will discuss how relocating your business from the east to the west coast can impact it, aka the pros and cons of relocating a business from the east to the West Coast.

Before we start, it’s important to mention that moving a business locally, let alone from one coast to the other, is challenging.

Thus, if you can afford it, it’s best to leave the stress of relocation to the experts, especially coast-to-coast movers or service providers such as 9Kilo and other similar ones.

Pros of relocating a business to the west coast

Here are some of the reasons why a long-distance move to the west coast from the east coast would be a smart business move:

  1. Weather is better on the West Coast

The weather in California is much more chill and more comfortable; it also offers better working conditions than many other cities on the east coast.

After moving your business to the west coast, you can expect to work indoors on sunny days, but if you need a break from the sun and rain, you’ll find plenty of shade in California too.

The temperature on the west coast is also more predictable; it tends to average out at around 70 degrees year-round instead of being subject to drastic swings up or down during winter (when temperatures often drop below freezing).

As a business, this means employees won’t have to worry about freezing their fingers off while typing away at their keyboards during a meeting or when getting to work.

  1. Technology companies and start-ups are everywhere

A west coast state like California is a great place to start a tech company, especially because it’s one of the fastest-growing tech-driven states.

Hundreds of technology companies are California-headquartered, which, for example, can be a great collaboration opportunity for a tech start-up at the seed capital stages.

For example, an east-to-west coast move can make a lot of business sense to a start-up to headhunt developers and other creatives from Silicon Valley and the many start-ups–and tech giants like Apple, Intuit, Oracle, Uber, and many others–headquartered on the west coast.

  1. Easier to build a team as you are closer to tech investors and incubators

The east coast is far from Silicon Valley and other tech hubs; thus, attracting the best talent can be challenging.

In addition, if expansion plans are why you’re considering the prospect of moving your business from the east to the west coast, you will have closer access to investors and incubators.

Thus, when you need funding or advice on which business growth steps to take next, you’ll have plenty of easy access to local resources, mentors, business incubators, angel investors, etc.

You’ll also have more opportunities to meet potential clients or partners who might want to work with your business.

  1. Higher quality of life which attracts a larger pool of professionals

The west coast is a magnet for professionals, especially those in high-impact, bullishly-growing industries like tech, AI, robotics, engineering, etc.

Demographically, this pool of professionals has a higher quality of life, which attracts more professionals and businesses. These professionals want to live where they can have a good time, eat great food and enjoy the outdoors.

Because moving your business to the west puts you closer to tech investors and other companies that have been around for a while, it’s easier to build a team that helps your business achieve next-level growth. You can find the right people to work with and get help from other well-established, west-coast-established companies.

It’s also easier to meet potential investors because the west coast has many investors willing to invest seed money in start-ups, small and medium-sized businesses, or companies spearheading innovative life-changing solutions for the masses.

Cons of moving a business to the west coast

Moving your business to the west coast from the east coast has disadvantages that could make the idea costly, making such a move unsuitable for some businesses.

If you’re considering relocating your business from the east coast to the west coast, here are some significant downsides you need to know.

  1. Packing and moving for a long-distance relocation can be hugely stressful

While relocating to a new business location can be an exciting and rewarding experience, it’s essential to remember that this can also be stressful.

Thus, it’s essential to ensure you feel–and are–adequately prepared for the move by ensuring your employees know what to do during the move and when they should arrive in their new office.

That’s why when you can’t plan the move down to the last step of moving your business, it’s best to leave the stress of relocating your business to professionals, especially coast-to-coast movers or service providers, many of whom have a moving expense calculator.

  1. Employees expect a higher salary as the cost of living is higher in west coast cities like San Francisco

The cost of living in San Francisco is higher than in New York. As a result, employees expect a higher salary as the cost of living is higher in west coast cities like San Francisco than in east coast cities like New York.

Thus, moving your business to the west coast from the east coast means your business will have to spend more on paying your employees, which might impact its profitability and growth potential.

  1. Although transportation is cheaper in west coast cities, commuting times are longer

Although transportation is cheaper in west coast cities than in east coast ones, commuting times are longer.

While moving your business to the west coast can significantly lower your business costs, commute times are longer because west coast cities do not have the best traffic reputation. Furthermore, public transportation isn’t as efficient as it could be on either coast.

Additionally, more people are moving westward than eastward at this time; this means there’s less space available for new businesses compared with those on either coast (and even more competition).

  1. As good as the weather is, you will miss out on the other different weather seasons

As good as the weather is on the west coast, you will miss other weather seasons.

The east coast experiences all four seasons, including snow and ice in winter, hot and humid summers, crisp fall days, and cold winters. In contrast, California has only two seasonal changes: dry heat during summer and mild rains during fall.

However, this weather situation can be a plus for some businesses that need quick access to resources or customers located near their operations base to maximize efficiency while minimizing transportation-related expenses (fuel bills).

After weighing the pros and cons, many businesses decide that the benefits of moving to the west coast outweigh the cons.

Conclusion

You may think moving your business to the west coast is a lot of work, but it’s not.

You don’t have to do anything special; you only need to ensure you have the right team members in place and keep your eyes peeled for west coast business opportunities you can take advantage of to take your business to the next growth level.

Published: January 19, 2023
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SmallBizClub

SmallBizClub.com is dedicated to providing small businesses and entrepreneurs the information and resources they need to start, run, and grow their businesses. The publication was founded by successful entrepreneur and NFL Hall of Fame QB Fran Tarkenton. We bring you the most insightful thinking from industry leaders, veteran business owners, and fellow entrepreneurs. Follow us on Facebook, Twitter, and LinkedIn.

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