Choose Your New Location with Care

There are many reasons why a business might need to find a new location, from the redevelopment of their existing office building to simply outgrowing the capacity of their premises. Whatever the reason, location can be a critical factor in business success and it pays to give it careful consideration before signing the lease or purchase agreement.

Too many professional services firms have found too late that choosing the right location is just as important for them as it would be for a retail business. Even though passing traffic might not be a consideration, the location of any business can have a large bearing on factors ranging from the well-being of team members to the clients’ perception of the organization.

Let’s assume you need a new location. The points that you need to consider when choosing the next location for your business can change over time. What was important ten or twenty years ago might be of little importance today, and even less important in the future. Relocating is costly and you simply can’t afford to get it wrong or you’ll be stuck with the consequences for a long, long time.

Begin by doing a good analysis of your old location. What’s good about it and what’s not so good about it? What have your clients or customers told you  about things like parking, access, the surrounding neighborhood and how easy it is for them to get there?

Talk to every member of your team and get their input. It’s just the same as for clients except that your team has to show up five days a week so they’re actually the possessors of more information about your location than your clients.

If the area makes them feel “safe” or “uncomfortable” you need to know about it. Even the proximity of shops selling fresh coffee or sandwiches can be important if you’re there every day.

If your business is highly dependent on having access to well-educated and professional people you don’t want to be isolated from the places where they’re most likely to live. It can be highly beneficial to be located in a cluster of other professional service businesses, much in the same way that members of the legal fraternity tend to cluster around courthouses.

Technology is an increasingly important consideration that needs to be given its fair share of attention. Most professional services firms need at least to have access to a broadband internet connection and a building that’s suitably cabled to make use of it.

If you’ve been using a particular technology in your business — fiber optic connectivity for instance, you need to be sure it’s available in the new location or you could be up for significant conversion expenses.

Fees and taxes also need to be considered. Some municipalities charge a lot more than others for their basket of charges and whether your business is an owner or a tenant you’ll be the one who pays them.

Availability of public transport and parking can be a big concern for team members and clients. Your people need to be able to get from home to their desks in a reasonable amount of time and at a cost they can afford. Transportation is one of the most important factors in their considerations of where they’ll want to work.

The prospect of man-made or natural disasters should be looked at. If the location is in an area that’s flood-prone or is frequently affected by spells of bad weather you might want to look elsewhere for a new place to do business. Combine two such forces — heat waves and power shortages for example, and you can have a real disaster on your hands.

Get to know the area before making any irreversible decisions to move your business into it. Subscribe to the local newspapers, walk around and visit local shops and other businesses. Look at the condition of buildings in the area, the cleanliness of the streets and the lighting in winter when you’ll be arriving and leaving in the dark. Be sure there are adequate service businesses that are accessible, including dry cleaners and banks.

When you do finally move start by planning everything out well in advance. Moving a business is a major endeavor, and not something that can be done in a haphazard or careless way. It takes twice as much time as you’d anticipate and will eventually cost twice as much, so work out every possible detail before you start unplugging the PCs for the move.

Copyright 2005, RAN ONE Inc. All rights reserved. Reprinted with permission from www.ranone.com.