Moving your small business is a massive undertaking but also an exciting new chapter. Whether you’re relocating across town or to an entirely new state, the relocation process comes with significant considerations.
As experts in the corporate relocation space, we’ve helped countless businesses navigate this journey. Here are the keys to successfully relocating your small business.
Have a Reason for Relocating
Before taking the leap, solidify your motivation for moving in the first place. Maybe you’ve outgrown your current space or there’s an opportunity to tap into a new market. Perhaps the local talent pool has dried up or there are enticing tax incentives elsewhere.
Don’t rush into business relocation without evaluating the potential upsides. Is the hassle and expense going to be worthwhile for your business? Take the time to conduct due diligence and have a clearly defined reason for moving. An impulsive relocation could set your business back rather than propelling it forward.
Location, Location, Location
Once you’ve committed to relocating, the hard work of finding the perfect new locale begins. Is the area a good fit for your target market and customers? How close is it to transportation hubs like airports or major highways? Will you have access to the skilled workforce you need?
Beyond basic logistics, different locations offer distinct benefits in terms of costs, tax rates, regulatory environments, quality of life aspects, and more. Suburban areas tend to be more affordable while urban centers provide proximity to clients and amenities. Some states woo businesses with tax incentives while others have onerous regulations.
Leave no stone unturned when vetting your options. Your new location will shape the trajectory of your business for years to come.
Budget For Your Relocation
Moving is always expensive – for both businesses and individuals. As you scope out potential new homes for your company, be upfront about tallying all the costs involved. Many business owners underestimate relocation expenses, leading to cash flow crunches down the line.
You’ll likely need to pay fees for:
- Moving services to transport equipment, inventory, and furniture
- New marketing materials with your updated address
- Renovations or build-outs for your new space
- Technology installation and setup
- Professional services for legal, accounting, and real estate
Those are just the start. As the moving date approaches, anticipate some overlap where you’re paying double rent and utilities for a period. Build out a thorough relocation budget from day one to avoid surprises.
One area where you can save money with your small business relocation is through the ARC Realtor Rebate program. We can help you save thousands on closing costs when you purchase a home in your new area. Fill out the form below to learn more!
Understand the Legal Aspect of Your Relocation
Relocating triggers a web of administrative and legal tasks – many of which can easily fall through the cracks during the hubbub of a move. Familiarize yourself with requirements on the federal, state, and local levels.
For starters, you’ll need to officially change your business address with the IRS using Form 8822. Don’t simply update future filings; make it an official change of record.
Next, you may need to dissolve or reorganize your business entity in its current state of formation. LLCs and corporations registered in one state can merge into a new entity in another through a statutory merger process. Alternatively, you could dissolve your existing entity and form an entirely new LLC or corporation in the destination state.
On the state and local levels, expect a new round of business licenses, permits, zoning approvals, and registrations to acquire. These steps are crucial for staying compliant and avoiding fines or penalties with your new locality.
How Will You Address Staffing?
One of the trickiest aspects of business relocation is managing the impact on your employees. Even a relatively short move can disrupt commutes, schedules, and personal lives. After all, your team chose to work for you at least partly based on your current location.
Some staffers may be open to relocating with the business, particularly if the new area offers benefits like lower costs of living. For others, it could prove to be a deal-breaker – forcing them to find new jobs closer to home. Preemptively survey employees to gauge sentiment about a potential move.
Staffing costs may be significantly different in your new location as well. Compensation expectations can shift based on the local job market and costs of living. Be prepared to restructure pay and benefits in keeping with the new normal.
If the move is drastically changing your employee experience and access to talent, consider going fully remote instead. Modern business technologies make it easier than ever for remote teams to collaborate seamlessly from anywhere.
Are You Ready to Move?
Even if a relocation checks all the boxes on paper, companies still struggle with the question of timing. Answer these questions honestly to evaluate if now is the right moment to move your business:
Is it the right financial move? Have you carefully forecasted costs with relocation expenses against potential benefits like higher revenues or tax savings in the new area? Moving is rarely cheap, so make sure the math works in your favor.
Are you and your team prepared? A relocation is massively disruptive to normal operations. Do you have a relocation policy in place? Are you and your employees in a position to handle the headaches and workflow interruptions for several weeks or months? The process is far more involved than simply changing addresses.
Have you planned for unexpected hurdles? No matter how much you prepare, surprises inevitably pop up during a move. Do you have the flexibility, patience, and contingency resources to weather those storms? Many businesses underestimate how much time and attention a relocation commands.
Best Tips for Small Business Relocation
If you’re confident that the timing is right for your relocation, keep these tips in mind:
1. Maintain Active and Open Communication
Throughout the entire process, prioritize transparent communication with all stakeholders – employees, customers, vendors, partners, and your local community. Chances are, your relocation is going to impact their lives or experience with your business in some way.
Update employees frequently about timelines, policies, and their roles during the transition. For customers, provide ample notice about any closures, address changes, or service interruptions that may occur. The clearer you can be, the smoother the relocation process will go.
2. Have a Relocation Checklist
There are a million and one details to track when relocating a business. Missed steps can lead to unnecessary costs, compliance issues, and operational disruptions.
Develop a comprehensive relocation checklist and review it obsessively. This master document should account for things like:
- Moving logistics like packing, hiring movers, and transport scheduling
- Administrative requirements like permit transfers and updated registrations
- Marketing tasks like ordering new materials and updating your web presence
- IT responsibilities around disconnecting/reconnecting tech services and equipment
- Employee communications about things like relocation policies and new workplace protocols
Check items off one by one and don’t assume anything is too small or obvious to overlook. Those tiny missteps can snowball into massive headaches.
3. Understand Operational Laws in Your New Location
Make sure you have a firm grasp of all regulatory, zoning, licensing, and tax responsibilities in your new locale. These obligations go far beyond just general business requirements.
Research specifics around things like:
- Employment laws and worker’s compensation regulations
- Professional licensing mandates for your industry
- Construction, permitting, and inspection protocols for your facility
- Local zoning definitions that could restrict certain business operations
- Environmental regulations to ensure your processes are compliant
These legal and compliance burdens vary drastically between cities and states. Don’t assume that your previous location’s requirements will automatically carry over.
Relocate With ARC
Moving is always stressful, but it doesn’t have to be something you dread. With meticulous planning and the right team of relocation experts at your side, it’s an exciting milestone for any growing business.
At ARC Relocation, we specialize in comprehensive corporate relocation services tailored to businesses of any size. Our team combines deep industry experience with cutting-edge technologies to streamline every facet of your move. From policy benchmarking and relocation logistics to cost forecasting and compliance guidance, we’ll be your relocation co-pilots.
Take the hassle out of business relocation by partnering with ARC. We’ll handle the heavy lifting so you can focus on successfully launching your company’s next big chapter. Contact us today to discuss your relocation plans and put our expertise to work for you.