How to Develop a Business Relocation Plan: 10 Steps for Success

A business may need to relocate for a number of different reasons – to lower taxes, cut overhead expenses, stay in touch with the target market, move closer to skilled or specialized workers, or look for more space due to having outgrown its current location.

Sometimes the main reason for business relocation can be something as trivial as a lease running out.

Moving a business from one location to another is a complicated task that’s not only extremely time-consuming and disruptive but one that may have numerous risks to employees and customer relationships as well.

So, in order to make the task of business relocation as smooth and stress-free as possible for everyone involved in the move, creating a business relocation plan is a must.

In its essence, an office relocation plan outlines the critical tasks necessary for completing a successful commercial move from one location to another. A well-developed business relocation strategy ensures a painless and stress-free office move.

Read on to learn the 10 steps to developing a business relocation plan for your company.

1. Set out the reasons for the business move

First things first.

One of the very first things you need to do when drawing up an office relocation plan is to list the major reasons why the business has to move. You want to make sure the company is moving to another location for all the right reasons so that there are no regrets later when it’s too late to undo what’s been done.

In reality, the unique needs of a business will determine the specific reasons for the relocation. It’s important to actually write down those reasons so that you can work out the best solution under the circumstances.

Potential reasons for a business move may be

• The lease for the current office place has expired with no option for extension;
• The company needs more office space because of its growth;
• The company is looking to cut overhead expenses, so it’s downsizing;
• The business needs to lower the operational costs, including paying lower taxes;
• The company wants to move closer to a target market;
• The company management is looking for a more skilled workforce.

Regardless of the underlying reason for the relocation, understanding why exactly the company is changing location will prevent a bad decision that can cost the business a lot of money and many problems down the road.

2. Assess and compare office relocation risks and benefits

The next step of establishing a working business relocation plan is to assess and compare all the risks and benefits of the planned office move. This is a critical phase of the project simply because it can pinpoint possible risks that are too great to justify the planned business relocation.

Potential risks that may endanger the success of the entire business moving project may include costly disruption to the production process, loss of key members of the company who do not wish to relocate to the new location, loss of customers due to the downtime, or the inconvenience of the new location, and much higher business relocation costs than foreseen in the beginning.

For a successful business relocation, the benefits should outweigh any potential risks. The advantages of a new company location may include but are not limited to a much-improved working environment, more space for employees and the production needs of the company, and easier access to suppliers or skilled workers.

Devise a detailed plan that will minimize all risks related to the upcoming business relocation.

3. Choose a new location

It should come as no surprise that a business relocation plan cannot get underway unless a new company location is found and secured.

Therefore, that’s exactly what needs to be done as the next preparation step for the commercial move.

Create a list of all the areas that are considered suitable for moving the business. Then, list all the facilities and properties (office spaces) in those areas that are available for rent and compare the pluses and minuses of each one.

Bear in mind that the new location for the business must have indisputable advantages over the current one – otherwise, the entire business relocation plan could prove to be unsuccessful when the dust settles shortly after the business move.

Negotiate the terms and conditions of leasing the new business location before you have put the business relocation plan into action. Create a detailed floor plan of the new property and office space to be certain that the new place will satisfy the present and future needs of the company.

4. Establish a business relocation budget

The creation of a business relocation budget is critical – there’s just no way to skip this step since the financial aspect of the commercial move is one of the factors that will determine how successful the company move has been in the end.

Make sure you include detailed expenses in the business relocation budget, both direct and indirect costs that come as a result of the planned relocation. Estimate the rough costs of renting or buying the commercial property in the target location, plus the monthly maintenance costs.

The budget should also include possible costs for repairs and refurbishment of the new business location, and possibly even for its redecoration.

Of course, you should also calculate all costs related to the business move itself, including the price of hiring reputable commercial movers to help you transport all office furniture and office equipment to the destination place.

Once you set a budget for the business relocation, consult with it frequently to have better control over the move-related expenses – in other words, that preliminary budget should keep you from overspending on an already expensive company move.

5. Set an office move timeline

A business relocation plan can be complicated to prepare promptly and execute smoothly and this is why it’s often the combined result of a massive effort from various company departments working together toward one common goal.

After the company relocation budget is created, the next step is to set a timetable for the office move – a detailed schedule that lists when each move-related task should be completed. It’s important to understand that Moving day itself is only one part of the entire business relocation timeline.

Here are several questions that will help you set the office moving timeline:

• When do you have to leave the current location?
• When will the new place be available for move-in operations?
• Is it possible to move during a period of relative downtime for the company so that you minimize the negative impact of the business relocation?
• What is the timeframe for relocating all company employees?
• When should you notify all business partners and government institutions of the company move?

Plan the company move dates carefully for minimal disruption of the business operations.

6. Allocate project management responsibility

One of the key moments during the relocation of a business is the correct allocation of responsibility for managing the company move.

In many cases, this step alone will either guarantee a smooth transition for the business itself or create numerous problems along the way.

Pick a leader from the company employees – a person who you know has the qualities to handle such a responsible task. It just has to be an extremely organized and exceedingly resourceful individual who can oversee the whole company relocation project from start to finish.

Also, put together a project planning team to help out the leader every step of the way. In the best-case scenario, one employee from each department should suffice – that way, you can be sure that each company department is on the same page and no misunderstandings will occur in any stages of the business relocation process.

Schedule periodic meetings of the business relocation project team – ranging from weekly to daily depending on the available time prior to the move-out date. Have the team leader report to you on a daily basis on the progress of the business relocation project.

7. Prepare a personnel relocation strategy

How to plan a business relocation? You do it with the cooperation of all company employees, of course.

Prepare an employee policy for relocation – everyone who works for the company must be informed about the planned relocation before anyone else. That should give them the time they need to first process the news and then decide what their part in the commercial move will be.

A priority task is to explain to all employees the major reasons and benefits of moving the business to another location. Then, encourage each worker to cooperate in any way they can to ensure a smooth business relocation. At the end of the day, each one must have a pretty good idea about their exact role in the move.

Some of the employees may not want to move to the new company location, especially if that new location is far away from the current one. In such a case, there should also be alternative arrangements for them.

8. Create a business relocation communication plan

When a company is moving from one location to another, there are many people, organizations, and institutions that should be informed about the business relocation. Therefore, when planning a business relocation, it’s crucial to inform all entities that have any business relationships with the company.

Prepare a business relocation communication plan.

First of all, all employees should be informed first of the move as mentioned above. It’s a bad idea to let company workers hear about the news from the press or from people outside the company as that may lead to disappointment and anxiety.  

Then, provide all customers, suppliers, vendors, or agents working with the company with correct and timely information about the planned business relocation, including updated contact details such as the address and telephone numbers.

Finally, be sure to communicate the commercial move to important government institutions and state organizations. Don’t forget to update your corporate website and your social media networks with the new contact information.

9. Follow an office moving checklist

Developing a business relocation plan is a complex task that requires many days of hard work and company resources to spare.

Once the decision to relocate is made, all attention should be focused on the essential activities for achieving the set goal.

Practice shows that the best way to plan a business relocation strategy is to create a list of must-do tasks that will serve as a guide to making it all happen. Each move-related job should be accompanied by a deadline and a person who’s responsible for each completion.

In other words, you should have a business relocation schedule with key completion dates and responsible persons.

But here’s the issue: it won’t be easy to get your hands on an office moving checklist that’s good enough and detailed enough to serve as your starting point. In fact, there are so many tasks to do during an office move that things could easily get out of hand, leading to total disorganization and unacceptable loss of valuable company time.

Luckily, we got you covered!

Our super-detailed Office Moving Checklist contains 50+ essential tasks that will point you in the right direction as far as organizing a business relocation is concerned.

10. Trust a top-rated office moving company

Moving a business from one location to another can be a big hassle. The complexity of the business relocation will depend on the company itself.

Moving an office from one place to another – office furniture, standard office equipment such as computers and computer peripherals, scanners, copiers, phones, etc., and all the people working in the office – should be the easiest type of commercial relocation.

On the other hand, moving an office AND an entire production base with numerous big and heavy specialized machines is probably the most complex business relocation there is.

Either way, the best way to approach the difficult transitional period for the company is to hire specialized office movers who have the required experience and knowledge on how to handle a commercial move.

Get business relocation cost estimates from at least 3 reputable commercial movers and compare the prices and conditions. Then, ask those business moving companies to visit the company in person in order to give you accurate estimates in writing.