Although relocating your small business can be an exciting chance for growth, the hidden costs of a business move are often overlooked by many entrepreneurs. Managing a smooth, cost-effective business move requires budgeting for unexpected expenses, even if the process seems simple. Below, we outline some of the hidden costs associated with relocating your company and offer tips on how to prepare and manage them effectively.
1. Unforeseen Labor Costs
Labor expenses can quickly rise, even with a few hired workers or movers. You may need more help than you anticipated if your company is big or you have a lot of inventory. It may also take longer than expected to pack and move everything into portable storage containers. You might need to hire temporary help or professional movers if you don’t have enough employees on hand to handle the move, which can quickly drive up prices.
Get a clear picture of how long your move will take and start early to prepare. To prevent hurrying and possibly needing more staff, you can spread out the loading procedure over a few days by getting portable storage containers from businesses like STORsquare.
2. Moving Equipment and Supplies
The tools and supplies required to pack and ship your business goods securely represent another hidden expense. These expenses, which may include boxes, packing supplies, or specialized equipment to safeguard fragile objects, can mount up rapidly. Packing large equipment or delicate electronics may require specific protective materials, increasing your costs.
Make a list of everything you own and determine what kinds of supplies you will need in order to get ready for this. Before beginning your relocation, figure out how much packing material you’ll need to avoid overspending.
3. Transportation and Fuel Costs
You still have to account for the cost of transportation if you decide not to use portable storage containers. Fuel prices will be significantly impacted by the distance between your current and future locations. Several trips might be required, depending on how far you’re relocating, which would raise the cost of transportation even more.
You can reduce the expense of traveling by making advance plans. Renting a larger vehicle or combining non-essential items into one trip can reduce the number of trips needed.
Understanding the Hidden Costs of a Business Move: Downtime and Insurance Risks
4. Downtime and Lost Revenue
The possible downtime is one of the biggest unstated expenses of moving your company. You will probably have to temporarily close your business when you move, which might cost you money, particularly if your company depends significantly on foot traffic or frequent customer visits. Customer service and operational efficiency may still be impacted by the transition period, even if you are able to work from a temporary site.
In order to avoid disturbances, schedule your move for slower times or off-peak seasons. As a flexible option, think about utilizing portable storage containers, which will enable you to pack and transfer gradually while maintaining optimal operational efficiency.
5. Insurance and Liability
During a move, many business owners fail to consider the necessity of additional insurance coverage. You might need to amend your insurance coverage to cover products in transit or temporarily stored if you’re moving your inventory, furniture, and equipment utilizing portable storage containers. Furthermore, there is a chance of damage or mishaps when relocating big or expensive equipment.
To make sure you have the right insurance in place for the move, speak with your provider in advance.