Why would you think of opening or moving to new premises?
The most common reasons are;
- Expansion – perhaps the most obvious: some businesses simply outgrow their existing space or wish to establish their selves into new geographical areas.
- Location – a move to be nearer public transport, labour supply or even parking facilities. Even in some cases; moving to a smarter address to enhance their image, which may not be seen as a wise reason but in fact, be perfectly justifiable, a business’s image can have a direct impact on its performance.
- Consolidation – the bringing together of operations to one central place of control.
Every business is unique and will have their own reasons to justify moving or opening new premises, whatever the reasons, once the decision has been made, they are now facing a lengthy and stressful process.
One last thought on this question – if you are opening new premises, it should ultimately always be for the reason of winning new business and not to serve your existing clients.
Some tips in making sure the move or opening go as smooth as possible;
- Move management – most managers have never taken on a project as big as moving or opening new premises, it can be confusing and chaotic , making sure the right person is in charge is vitally important and just remember this person can be an outside expert.
- Space – this is now the opportunity organise your business for the better, consider layouts, work spaces, furniture and again seeking expert advice will do no harm.
- IT and cabling – probably the most important, in this day and age, getting this wrong may leave your business offline for a lengthy period. Always check that the new premises have sufficient bandwidth and cabling otherwise your businesses capability to grow will be severely limited.
- Systems – if opening new premises, this will be the key to its success. Making sure that once all the dust settles from the move, business can carry on as normal and it the long run having systems will make your business more valuable.
Benefits of the new premises
As with everything in business, there comes a time where that window of opportunity opens for a short while and in this case the opportunity of de-cluttering arises. Now is the time to turn your paper files into electronic files, complete the shredding and throw away the unnecessary.
Being in a new area will open the doors for new business and new talent opportunities; make sure you take full advantage of them.
The short period between, making the decision and actually carrying it out, there is time to assess how best, for tax reasons, to structure this new venture.
One MUST do action
At the end of it all there is one MUST do action –
announce your move or new premises.
Use everything at your disposal, social media, blogs, networking, press releases and how about having an open afternoon for an official launch.
Is this the end of it? If you’re moving location then it’s probably safe to say yes, but if you have expanded and opened a new location, well now, this leads you somewhere else.
We have all heard of the “profit per product” measurement in management accounts, but what about “profit per premises” because the new location should be at least paying for itself, wouldn’t you agree?