Renovate, Expand or Relocate?
The business location and building size that was perfect for your firm in the past now make it a struggle for you and your staff to perform the daily tasks that need to be done.
Hence, your company is faced with two choices – either expand and/or renovate at your current location if space is available, or relocate into a different facility at a new location.
Should we stay...
In order to make your decision you must first perform a thorough evaluation of current operations at the existing site. Some of the factors to consider in making this decision include:
- Is there sufficient real estate to expand?
- Does the existing location have access to a good work force?
- Is the business climate competitive?
If so, then the existing site should be a very attractive option.
So the next step will involve a cost analysis to determine if purchasing new equipment would make the building and operations more energy efficient; or perhaps providing a new work area layout will be more efficient. Today’s equipment is usually smaller in size and requires less energy as well.
Next, an experienced commercial builder should be engaged to properly evaluate the existing structure, desired modifications and associated costs.
Problems related to the relocation of people, equipment and processes can result in a loss of revenue and customers. However, if planned well by both the owner and contractor, renovation or expansion can be performed with minimal disruption to the daily business operations.
Or should we go...
If the decision is made to relocate to a new facility, both the area where the existing facility is located and additional locations should be analyzed as part of the due diligence process. Whether moving in close proximity or further away, key criteria must be explored, analyzed and evaluated to ensure that the company makes the best decision for today and into the future. Some of these issues might include:
- Willingness of team members to relocate and associated costs
- Timeframe for the move
- Potential downtime
- Zoning and land-use issues
Engaging an experienced real estate agent as well as a builder is often beneficial to the company in evaluating the potential new site. Whether it is a parcel of land or an existing facility that is being considered as your new business location, you will need advisors to determine the cost of building and/or renovating to suit your needs.
Armed with this detailed analysis, you will have a much better understanding of whether renovations/ expansion at the existing site or relocating to a new facility is the best for your firm and its future.