Companies relocate for all kinds of reasons. Sometimes, they are pushed out of their original city or area by a superior competitor that simply cannot be defeated. Other times, the local economy gets hit badly and it makes little sense staying in the area. Sometimes it is a matter of qualified workforce. Sometimes it even makes sense taking the company abroad for whatever the reason (lower wages, fewer regulations).
And while it will make perfect sense to relocate one’s business, this is by no means an easy feat. In fact, if you are not careful, you are risking being inactive for too long and this may have devastating results for your company.
So, what are the few things that you will need to keep in mind when relocating your business?
Like we mentioned earlier, sometimes company relocations are done exactly for talent reasons, or more precisely the lack of it in the original location. However, if this is not the case, then you really have to consider the fates of your existing employees. This is especially true if you are relocating to a very distant location where it would mean a major move for the employees who wish to go with you.
Sometimes the realities of doing business will mean that many of them will not be able to move with your company. In such situations, you will have to ensure that you hire the new employees beforehand so that you have someone to work with once you roll into town. Namely, you cannot exactly afford to be non-operational for months as you are sourcing talent and finding the right employees.
Another possibility is that you will have important people on your payroll who you cannot afford to lose in the move. If this happens, you will probably need to provide some serious incentives in order to keep them aboard, especially if the relocation is a serious one, geographically speaking.
If you happen to be relocating abroad, you will also want to learn about labor laws in your new destination so that you can better formulate your employee policies in order to comply with the local laws.
The facilities that your business will require can range from simple office space to a manufacturing plant or a prime location in case you are running a hospitality business of some kind, like a restaurant.
In any case, you cannot jump into it haphazardly, hoping that you will hit the jackpot.
The chances are that you are relocating because of your current facilities are not enough to support your growing business, but even when this is the case, business owners often forget to do their homework as thoroughly as they should.
Finding the right office or manufacturing space is much more than just getting a good price per square foot. It is more than being in an up-and-coming commercial area.
It is about major things like the proximity of major roads or presence of infrastructure in the area and it is also about small things like the damp or the internet connection that is available in the area.
There is nothing that can hurt business relocation as much as a poor choice of new facilities and moving into facilities that are not ready to support an operational company. This is why it is essential to both do your research as thoroughly as humanly possible and to ensure that everything is ready for the normal functioning of your company.
Once again, if you are moving abroad, you will want to be extra careful and perhaps even find a local partner which will ensure that your new location is both promising and capable of supporting a working company.
Legal and Paperwork
Company relocation will always bring with it a fair share of paperwork and legal stuff that has to be done. A simple change of address, even in the same city or even suburb, will need to be reported to the appropriate government agencies.
When we are talking moving to another city, this will only increase the amount of paperwork and legal that needs to be handled as changing the zip code will bring with it a new local government and often new laws. Make note of the financial legal requirements that each city has, as this will differ from place to place. It is worth purchasing a PAN card seva to be on tax records.
If you are changing states or provinces, or whatever the internal division is in your country, this will bring with it a whole other set of headaches, red-ribbon-wise. Just as an example, if you used to run a car dealership in Ohio, you didn’t need a surety bond to do it. However, you will need a surety bond in Texas for such a business, as well as in 46 more states, for that matter.
Trying to stay on top of things like this on your own can be quite a daunting task and it is often a much better idea to hire a consultant or even a lawyer in your new destination. This is particularly true if you are moving abroad and you have to deal with an entirely different legal system.
Relocating is sometimes necessary and when that time comes, it is best to be prepared. Improvising with your company relocation is rarely a good idea and the worst case scenario is something you will want to avoid at any cost.