Ready for Expansion: How to Decide if Your Business Needs to Remodel or Move Premises

Ready for Expansion: How to Decide if Your Business Needs to Remodel or Move Premises

Small business owners make a lot of difficult decisions as they grow their companies. Arguably one of the most important of these questions is how to facilitate growth as new employees are signed on. Some business owners immediately assume their only option is to move to a larger office, but that’s not always the right decision. Read on to find out how to decide if a business should move premises or renovate its existing space.

The Building

Not all buildings have the space to handle expansions, especially without dramatically disrupting employees’ abilities to do their jobs. If the current premises have enough swing space to accommodate employees while offices are renovated or expanded, it might be worth staying put. Business owners who love their current spaces also have the option of renting temporary office space off-site.

Extensive renovations require a lot of heavy equipment, so the building itself isn’t the only thing business owners need to consider. They should also consider permitting and access. Commercial renovation companies can usually help their clients navigate local business codes, determine access points, and find a crane mat to accommodate heavy equipment.

The Budget

Before making a decision, calculate the average cost to build out modern offices. It can range from between $40 per square foot for basic spaces like call centers with standard finishes to $180 or more per square foot for luxury office spaces. Those who want to expand their offices substantially should plan to pay significantly more. Compare the budget required to make renovations with what it would cost to move.

The budget shouldn’t be the only concern, but it can be a limiting factor. The same can be said of time. If the business has a peak season and it’s coming up fast, it’s relevant to note that moving is typically quicker and creates fewer disruptions to productivity than full-scale renovations.

The Brand

Branding can impact a business owner’s decision to move or renovate in several ways. If the company’s brand is strongly associated with its current location, renovating the existing space may be a better way to go. If the company already benefits from widespread brand recognition, this is less of an issue.

Growing brands expanding their networking capabilities sometimes move to new premises to better align the company geographically with strategic partners. Quickly growing companies may also want to consider moving their headquarters to locations closer to highways, airports, hotels, and amenities to accommodate visitors.

Employee Concerns

If most of the company’s current employees live in the immediate area and appreciate a short commute, moving to a new location all the way across town may temporarily increase employee turnover. Some companies can get around having to move to a larger space by encouraging some workers to telecommute, while others need to improve collaboration in their existing teams by adding new coworking or break areas. Make sure to keep employees’ preferences in mind when deciding whether to move or renovate because they are the backbone of the company.

The Bottom Line

The decision to move to new premises is one that shouldn’t be taken lightly. There’s no right or wrong answer, but business owners should weigh their options carefully and consider both the short-term and long-term impacts of renovations versus relocations before making a final decision.

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