Business Relocation: When the Game Is Worth the Candle


Business relocation is change in the physical location of the facilities, staff, and main activities. Such an event is not instantaneous – every step should be planned to the smallest detail. The decision of relocation demands all risks to betaken into account and compared with new opportunities.

The market is quite dynamic and flexible sphere. It is extremely sensitive to political, social and cultural changes. So there is no ideal geographic location for all times. Business relocation is an effective way to follow current market and social tendencies.

Moving of business creates a great number of new job opportunities. In some spheres, relocation can cause profound changes in the organizational structure of the company. The problem of staff reorganization makes leadership to hire new employees. HR specialists of the leading companies and certified ResumeWriters experts accent that qualified specialists can be refused due to inappropriate composed resume. This explains the explosion of popularity among resume writing services.

The movement of people and funds constitutes the basis for social mobility and economy development.Modern globalization processes are largely driven by variability of locations and organization forms.

Business relocation does not always satisfy employees. Differences in state legislation can be a serious obstacle to continue working at the company after moving.

When is business relocation reasonable?

You should think about moving the business if the potential revenue growth exceeds the face value of portage measures of facilities and staff.It is also necessary to take into account the costs associated with re-registering a legal address and company contacts.

If moving a business has its own risks for the company and the owner, which are primarily associated with the financial side of the issue, then in the case of employees this is a completely different matter. A person must decide whether he is ready for such changes in his life. For those who are employed in the federal sector, such thoughts may seem inappropriate, because the department itself decides to transfer the employee to a new place.

If the employee is not ready to move, it is better to indicate this in his resume so that the employer knows in advance about a possible refusal. For professionals employed in the public sector, this may be a prerequisite for employment. Therefore, before submitting your resume, you need to consult with the best specialists who have experience in the public sector and preparing special resumes: it will help to consider all the possible options better as well as make a decision.

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Risk management specialists consider the degree of risk impact on 4 aspects: goals, deadline, budget and quality. To describe them, you can use this kind of influence matrix.

Assessment Cost overruns Calendar schedule Project content Product quality
1 (low) up to 5% 1 month shift Less than 5% increase in workload Almost no effect on customer satisfaction.
2 (medium) from 5% to 10% 1-3 month shift Increase in the workload from 5% to 10% The client will be dissatisfied with the result.
3 (high) over 10% 3 + month shift Increase in the workload over 10% The client and the end consumer will be dissatisfied with the result.

Reasons for Business Relocation

Business relocation is usually associated with the following reasons:

– The new geographical location is considered as more profitable.

Each type of business has its own geographical features. As the company grows, new locations become available.Thus, relocation becomes a commercial solution for increasing profits.

– The current location is costly.

The total cost of doing business can vary significantly by location. When operating costs exceed acceptable values, the business ceases to be profitable.In some cases, relocation is a profitable alternative to complex optimization and reorganization processes.

– There are no sufficient facilities at the current location

When the state of the current facilities does not meet the needs of your business, you can choose either the construction of new facilities or relocation. Market instability makes relocation more advantageous than new facility construction.

– More favorable tax conditions at new location.

In many regions, city authorities are interested in the influx of new business into their territory. New jobs and economic development of the territory increase the prestige of the city.

An effective incentive for business development is tax incentives. They can significantly increase the profitability of your company. A prime example is the City of Round Rock, Texas.

– More developed infrastructure and standard of living

Numerous types of businesses are closely tied to local infrastructure. It provides the path of goods or services from the company to the consumer. In addition, the flow of customers and their needs also depend on the availability of transport and local living standards.

Main risks of business relocation

It will be difficult to take into account all the risks for each individual type of business. Here are the most obvious ones you may encounter when relocating:

  • Violation of established business processes.
  • Decreasing of your company’s reputation.
  • Violation of established business processes.
  • Competition in a new place at first will not be in your favor.
  • Losses among employees and lack of qualified personnel.

Problems with moving employees constitute the most troublesome part of business relocation. At the same time, displacement creates new opportunities for the obtaining of more qualified staff.

Hiring new employees is one of the common and sufficiently good reasons for relocation if there is a problem of a lack of qualified employees at the current place. Especially advantageous in this relation is accommodation near colleges and higher educational institutions.


Moving a business is a complex multi-stage measure. There are a number of points that need to be evaluated in order to make the right decision. The basic principle is the commensurability of risks and potential profits.

Moving a business entails changes at all levels of the organization – from the legal address to the composition of the team.It also brings new opportunities and increased profits for the company as a whole and for each employee individually.