When you first start a business you’re probably going to be working out of a small premises, or even just your garage. Keeping your outgoings low is vital if you’re going to survive and buying a huge office space is going to make that impossible. But after a year or two of success, your office is no longer going to be up to scratch. Unless you want to cram all of your employees into one tiny room, you’ll have to move to a bigger office.
Any sensible business person is going to sit down and draw up all of the costs of moving before they make any decisions. The increased cost of rent, hiring a moving company, getting more staff, and buying furniture and equipment for the new office all go on the budget. However, a lot of people make the mistake of stopping there, without considering these hidden costs.
Loss Of Productivity
People usually consider the loss of productivity when they’re moving but they massively underestimate just how many hours they’ll lose. They think it’ll be a couple of days, maybe even a week. In reality, the whole process from packing the office to the actual move and the setting up of the new office can take up around 800 to 1000 hours in total. That seems high but when you add up any time spent dealing with moving instead of working their normal jobs, you get that figure. That’s a lot of lost time so you need to be ready to take that hit. It’s best to finish up any projects and avoid starting any new ones so you aren’t getting interrupted halfway through things. Good planning beforehand can help to reduce that loss of productivity during the move.
Your address is only one small detail but if you don’t change it on your marketing materials you’ll end up with all sorts of problems, not to mention it looks very unprofessional. It’s simple to change on your website but you’re going to have to pay to get all of your business cards and brochures reprinted and distributed which is going to cost you.
Real Estate Fees
Obviously, you will have taken into account the real estate fees for finding your new place but what about any hidden costs in your contract with your old one. If you’ve broken a lease early then you’re likely to have to pay an exit fee for that. There’s also a chance that you’re going to have to pay repair fees for any wear and tear in the old office.
You’ve already thought about the cost of moving all of the stuff you want to keep over to the new office but an upgrade in premises often comes with an upgrade in other areas. If you’re growing as a company, your needs are going to be expanding in terms of space, but also in terms of things like IT systems. If you’re fitting the new office out with a load of new computers, you’ll have to do something with all of the old stuff and you’re going to have to pay for somebody to dispose of it for you.
If you miss these costs then you might find that your office move causes more problems than it solves.
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