Senior management is finally in agreement about relocating your company to a larger facility. Now that you are ready to make the big move, you need to put together a plan. The time that you spend planning will save you a significant amount of energy in wasted efforts and other general frustration when you are searching. You will be tempted to run out and search for a new space right away. Resist this temptation and spend your time wisely in the planning stage. This plan to relocate your company should include a team and a timeline. You should also have deciding factors in your plan such as how much space you will need, where your company will be located, and the costs associated.
Put together a relocation team
Identify team members within the company first, understanding that their duties on the relocation team will take away from their normal work responsibilities. If necessary, arrange for other staff members to cover some of their tasks during the process of relocating your company.
Then, consider the team members that you will need from external sources. At a minimum, most likely you will have your mover, attorney, real estate broker or consultant, and either your CFO or accountant. Your external team may also include interior designers, space planners, general contractors, facility engineers, furniture vendors, and communications providers.
Make a timeline for the relocation process
Careful timing of the relocation process ensures that everything will come together smoothly. You must coordinate for design and space planning, real estate shopping, communications and legal tasks, construction, and the actual move. For smaller companies, a six month time frame may be realistic. For a larger company, a relocation may take a full year or even a couple of years. Plan for more time than you think you will need in case you hit snags along the way. Many businesses find it helpful to plan the relocation timeline in the form of a Gantt chart with overlapping tasks and critical paths.
Decide how much space your company will need
For a simple move, a broker or consultant may be able to prepare a sufficient space program. If you are anticipating a more complex move for your company, think about hiring a facilities engineer to prepare a high powered report. Are you relocating your company to an industrial space? Make sure that you define all of the necessary items for the space such as loading doors, warehouse height, power, and amount of space. A seasoned broker will have checklists for you to use during the space analysis.
Decide where you will be relocating your company
As you determine the geographical range for the move, consider key employee commuting distances, available services, amenities, and of course, pricing. For an industrial relocation, you may also have to think about shipping, utilities, and varying governmental incentives.
Calculate relocating costs
Budgeting and financial analysis should be key components of the early relocation planning process. A broker will provide realistic real estate costs and financing estimates. Talk to vendors, consultants, and other relevant experts for estimates in their respective fields. A discounted cash flow over the term of occupancy will help you understand the bottom line costs for your upcoming relocation. An accountant will put together the cash flow estimate and then review your financial statements alongside it. This process ensures that you can put together the financing that you need for a successful relocation of your company. If you are planning to lease a new facility, you want to ensure that you can lease the space that you need.
Take the time that you need to plan the relocation of your company. It may seem like you are using too many resources during the early stages of the process. However, allocating your resources properly from the beginning saves time down the road and eliminates a lot of frustration and confusion. Don’t skimp on the planning process, and you will be on your way to relocating your organization successfully.
La Junta Economic Development (LJED) supports companies who are interested in expanding or relocating to the greater Southeastern Colorado region. We assist and offer incentives for business relocation as well as organize small business development within La Junta. We have groups and tools available to coordinate the relocation itself. If you have any questions about relocating your company, give us a call today at (719) 384-6965. You can also Contact Us via email. Let us show you why La Junta, Colorado is a great place to relocate your company to.