Moving can be scary
Relocating a business or factory production line presents is a daunting project. However, the light at the end of the tunnel offered by monetary savings and the prospect of streamlining is an enticing one. The truth is, a lot can go wrong. Here, we share three company relocation mistakes to avoid to save time and money.
Mistake #1 – Waiting to Secure Prints
We start off with arguably the most painful process. When a decision has finally been reached to make the move you must inform your current landlord, or if you own the property, put it up for sale. This immediately gives you a deadline.
It is frightening how quickly time passes and so you must secure prints for the new building ASAP. Failing to present building prints will prevent you from securing any necessary financing and permits required to move forward. One week fades into another and soon, all the contractors you were promising to use are ready to start work, are expecting payment and you have not received permission to proceed.
Key takeaway: Start with a clear vision, a clear timeline and at the top of your schedule, ensure securing prints is an absolute priority.
Mistake #2 – Moving Without a Defined Purpose
Relocating is a complex undertaking and it is easy to lose sight of original reasons for doing so. An example of this would be a growing company looking to expand into a larger space. Going through the process of securing land, designing, building, and relocating drags out resulting in the company has outgrown the space before they move in!
The same can be said for engineering requirements. A larger or different type of yard and any other potential predicted change in company needs can result in an inadequate facility and/or yard.
Key takeaway: Be crystal clear about the reasons for moving, ensuring the new space meets both immediate requirements as well as any foreseeable future needs for growth. Always factor in build time.
Mistake #3 – Thinking Too Small
Sometimes bigger is better and can save you time and money. Companies with several locations often find it favorable to amalgamate into a central location to reduce costs and increase efficiency. While it is true rent can be more expensive in a larger location, the decrease in other costs, including management, will offset this and save money in the long run.
Key tips for calculating cost savings:
- Logistics will be easier to track, organize and maintain
- If your city has a ring road, opting for a location outside of town will save time as compared to a central location where traffic is more dense.
- Having related production lines under one roof can mean less floor space is required and often less machinery as well.
Key takeaway: When planning out required yard and floor space, think about the bigger picture and be sure not to simply use the same space requirements you have at present. Often less space is needed so request a quick consultation before doing the math. Always factor in traffic, bypasses and ring roads when calculating travel times.