This is one of the most self-explanatory aspects, but it is also one of the most challenging due to all of the hidden or secondary costs associated with business relocation. First, examine the cost of relocating your business from one location to another. The greater the distance, the greater the potential cost of the relocation. Transferring a 3000 person workplace across the country, for example, will be much more expensive than moving a 20 person office across town.
The in’s and outs of commercial relocations
However, in all cases, you should consider whether the cost advantage outweighs the actual expense of making the change. Next, think about how the overhead expenditures of your new location will affect your daily operations. Lease or mortgage payments, utilities, shipping, and earnings could all be affected.
For example, if you relocated a business from the Gold Coast to Toowoomba, the cost of office space and wages would almost likely skyrocket.
Following that, consider the “hidden” expenses of relocation. These hidden expenses may differ from one organisation to the next, therefore it is critical for those engaged in the relocation decision to properly examine any financial shocks that may arise as a result of the move.
Continuing with the previous example, would you be able to pay for all of your employees’ relocation costs if you relocated from the Sunshine Coast to the Gold Coast? That might be an expensive expense. To meet the cost of living in New York, you will almost certainly have to significantly increase their pay.
Because the transition from the SunShine Coast to the Gold Coast is so significant, many of your staff will be reluctant to go. Depending on the attrition rate, your company may have to incur significant fees in hiring and training new people in Gold Coast to fill these gaps.
Depending on the skill sets required by your employees and the pool of competent candidates in Gold Coast, your company may need to expand its training budget in the long run. For example, the Sunshine Coast has a large number of workers with agriculture scientific knowledge, whereas the Gold Coast likely has fewer.