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How To Calculate Business Relocation Costs

Monday, March 7th, 2016 Published By: Cynthia Nieb 0 Comments

There’s more that goes into relocating your business than simply the expense of moving furniture, files and equipment. In fact, many of the costs associated with business relocation come before the actual move itself and after. Creating a budget before your move is a must and should include both pre- and post-move expenses. Here are some steps you can take to make sure that you accurately calculate your business relocation costs.

Costs relative to your new location

You will want to meet with the landlord (or building seller) to get an accurate estimate of space-related costs when it comes to business relocation. This estimate will include down payments, closing costs, move-in fees, broker fees, deposits, cleaning costs, and early-lease termination costs.

Costs associated with closing your office

Make a close inspection of your current office to determine if you will need to upgrade or repair any damage, and estimate the costs of doing so. Also, check with your current landlord if you are renting, to discuss any fees or penalties if you are ending your lease early. If you are selling the building, you will need to figure in realtor fees, commissions, advertising, upgrading and so forth.

Service costs

These kind of costs would include the expense of terminating or moving contracts for phones, internet, vending machines, cleaning, and other office services you may currently have.

Moving costs

Create a list of moving expenses that includes packing, shutting down computer systems and phones, and hiring a mover. Negotiate a set fee with the mover, if possible. You will also want to get quotes on insurance, beyond what the mover offers, so that you are covered in case of damage or theft.

Employee costs

Determine the number of staff hours needed to both prepare for the relocation and to unpack and set up the new office. You can calculate the pay for these hours, or the amount of lost business because employees are working on the move. Also, calculate the amount of business or sales you could lose during the relocation. Likewise, be sure to figure the cost of lost business if your move forces you to shut down for a time. There is even a possible cost of having to hire and train new employees if you lose existing ones because of the business relocation.

Miscellaneous costs

Make a list of customers and media outlets that you will need to contact to announce your business relocation. This announcement could include mailing costs, the cost of new business cards, stationery, website updates, and brochures.

La Junta Economic Development (LJED) supports organizations that are expanding or relocating to the greater Southeastern Colorado area. LJED is closely involved with the chamber of commerce to support small and large companies alike in their efforts to relocate or expand. To learn more about the region and how La Junta Economic Development can assist your business during your upcoming relocation, contact us today. Give us a call at (719) 384-6965 or Contact Us via email.

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