Are you having trouble finding talented employees? Is your store experiencing reduced foot traffic? From business expansion to not being able to afford rent, there are various signs that indicate that you should relocate your business. Identifying them is the key to avoiding large expenses down the line. Here are seven signs that indicate it’s time to relocate your business.
Business owners select their retail locations based on several factors – market research, nearness to the target demographic, availability of affordable commercial rent etc.
Over time, the industry can change. People can stop appearing at your store over time. Or your business can scale so much that you have no choice but to look for a larger commercial space for your business.
Avoiding signs that it’s time to relocate your business can lead to larger expenses or a quick move to a location that you haven’t properly researched.
Here are seven signs that it’s time to relocate your business. If these signs apply to your business, then it’s to consider thinking about the big move.
A Lack of Talented Employees
Employees are the lifeblood of any business organization. Without good employees, no business can survive much less thrive.
If you’ve noticed that you can’t seem to hire proficient employees, then it may be time to relocate your business. Finding an area with a large pool of talent will enable you to make the best hires that help your business to grow.
Employees today look for convenience when commuting, as well as good pay packages. If you’re business is located in an area that’s not accessible by public commute, relocating to a more central location will bring the best employees to your business.
Reduced Customer Footfall
Even if you had a large number of customers entering your store when you first launched your business, continued footfall isn’t always a guarantee.
If the number of customers entering your store isn’t enough for you to grow and scale your business, then it’s time to shift to a better location. To find the ideal location, you’ll need to first conduct research on your target demographic.
Which geographical locations do they mostly live in? What kind of stores do they frequent? Where are they located? Relocating to an area nearer to your target demographic will ensure regular customer traffic and increased sales.
High Operational Costs
To keep running your business, you need to deal with recurring operational costs. These include employee wages, utility bills, vendors and suppliers etc.
Running a business in an area where you’re met with unusually high utility bills, distance from suppliers and vendors which lead to high transportation charges etc. is bad for business.
Instead, why not relocate to an area where you’re closer to your suppliers, or an area with lower utility costs. Finding ways to reduce operational costs can help you shift those surplus funds towards business expansion.
Growing and Expanding Business
If your business has been successful, then you may find yourself cramped for space eventually. You may need to purchase additional equipment, buy more display cases and shelves, and hire more employees.
If you find that your current commercial space can’t accommodate the growing needs of your business, then it’s time to relocate.
Commercial Lease About to End
If you’ve rented your commercial location, then the lease was bound to end at some time. This is a great opportunity for you to evaluate whether it’s worthwhile to continue your current lease, or find a new area to relocate to.
You may also want to consider purchasing commercial real estate so you don’t have to worry about leasing the space.
Either way, analyzing your business performance in your current location will tell you whether you should continue to lease there. At the same time, you should also consider alternative locations. Your decision should depend on which location brings you more revenue and business growth.
Online vs Offline Sales
More people are turning to online purchases. While retail locations continue to be successful, the power of online shopping can’t be discounted.
If your business has an online portal for shopping, and you find that most of your sales are coming from there. Then, it might be time to consider shifting to a smaller location. By focusing on your online business, you make more sales while spending less on operating a larger physical retail business.
Old or Unhealthy Location
If your current business location is old and worn, falling apart, has water or could damage, or other issues, it’s time to relocate.
Customers won’t want to visit a worn out store, and your employees won’t be able to give their best either. To decide whether you should relocate or no, you should do research on whether it’s more expensive to repair your current business location, or to relocate.
Usually, relocating will be the more economically conservative option.
Relocating your business can open doors to new opportunities for business growth, brand visibility to new demographics, and business success. While relocating, you may also want to consider getting business insurance. To know more about business insurance, click here.