Depending on your commercial office lease, business needs, and your current location, you may need to decide whether it’s better to renovate or relocate your business. If you are at the point where you need to choose one or the other, the checklist below will help you work out a pros and cons list to find out which option is best for you.
For most businesses, it is not a clear-cut answer and working through the costs, impact on your business, and time it will take are major factors that could affect your business and profits.
Importance of Location
When deciding to renovate or relocate, location can be a major factor that impacts a business. Having a convenient location, ample parking, and common stores that people frequent near you is important.
If you are looking to renovate or relocate, consider the importance of your location. Have you been at the same location for decades? If you relocate, how far would you be from your original location? Would this be inconvenient for your clients? Is your business visible and do you get a lot of clients based on walk-ins frequenting the area?
If the answer to these is yes, it is likely that the location you are currently at is important to your overall business objectives. While this is just one consideration, it is likely an important one.
Clearly costs are also going to be a major factor. The costs of renovation versus relocation are important.
You’ll need to calculate your moving costs, including a deposit, new rental amount, transportation and moving costs, etc. This includes the possible cost to your business if the new location is inconvenient to your clients who may choose to go with another business.
On the other hand, you’ll also need to count your renovation costs. One major thing to consider outside of the actual costs of supplies and labor is whether you can remain open during the renovation. Will the renovation impact your business in any way? If so, for how long?
One way to find out how clients would feel about the business relocating is to ask them. If you find that the costs would be similar, or the pros and cons just seem to be equal, talk with your clients. Would a new location push them to another provider? Clients may not feel comfortable providing you with this information so providing an anonymous survey via e-mail may help with the validity of your feedback.
Consider the Future of Your Business
If you renovate now, will this renovation accommodate your business based on your projections for the future? Is there a possibility that you could outgrow your renovations and need to relocate anyways?
Check out your local zoning laws to see how much you can expand now (and possibly in the future). Consider the future of your business when deciding to renovate or relocate your practice.
Intuition and Time
A large part of running a business is outlining and determining plans, going over cost-benefit analyses for numerous business decisions, and ultimately following your gut. After a balanced analysis including a pros and cons list, also consider your intuition. While this should not be something you fully rely on, sometimes following your intuition can help ease your mind when you make your final decision.
If possible, you should also take some time to think about your decision. Put down your pros and cons list and come back to it 48 hours later. Sometimes time can provide major clarity in terms of business decisions.
If you are unsure or are interested in relocation, contact Boulevard Medical Properties. Boulevard Medical Properties has been helping businesses transition into new offices for years. We have a dedicated team of expert real estate professionals that can walk you through the process step-by-step without any pressure. No matter what you decide, give Boulevard Medical Properties a call to see what your options are.