Moving your business is an exciting time but can also bring concerns for entrepreneurs. You may be wondering if the new location will help with expansion. You might be worried about finding new suppliers and customers in a new area. Moving your business means you will need to transition your operations and possibly appoint new staff, so keep a workplace training centre in mind.
New Location May Help with Expansion
If you are looking to expand your business, moving to a new location may give you the boost you need. It will be easier for existing customers and suppliers to travel to your new place than for them to travel to your old one. The distance between two locations can affect the economy of scale, which refers to how much an average cost goes down as more are produced. If you are selling an expensive product, this could be important to your bottom line.
Looking for New Suppliers and Customers in a New Location
The good news is that moving your business will allow you to find new suppliers and customers. Typical strategy entrepreneurs use to attract new customers is to hold a grand opening event. This will get your name out there and allow you to make new connections. Moving can affect your existing suppliers; find out what you need to do to keep them supplying your business, such as if they need to re-register for sales tax purposes or re-label their products.
Getting Transferred to Your New Location
Moving does not have to be a complicated process, but you will want to put some plans in place before the move to ensure that things are taken care of. The following are some things to consider when getting your business transferred to a new location:
- Make sure all suppliers and customers are aware of the move. You may want to offer incentives for them to stay with you in your new location.
- Review your lease agreement and talk to the property manager about giving notice before moving out. Find out what fees you will need to pay if you end your current lease early or break it.
- If your suppliers are located in your old location but want to use the same product with a different label or packaging, you will need to visit them in person. Make sure to bring samples of the new labels so they can be re-registered for sales tax.
- If you have employees at your old location, consider bringing some of them with you to your new site; it will make the transition much smoother. If that’s not possible, give them as much notice as you can and offer them an incentive for staying until the move is complete.
- If you move your business location between states, you may need to pay state income taxes for both locations until the change has been made. Your accountant can help you determine if this is necessary and how best to minimize your tax liability.
Cross the T’s
Moving your business can be an exciting time for an entrepreneur, but there are things to consider when making the transition. If you have any questions about moving your business location, contact your accountant or tax professionals for advice.