Relocating a business presents more opportunities in terms of expansion, better living standards, and exploring newer markets. However, the cost of moving the company is much than what people think. Not only does it include the physical moving of assets, but other charges also accrue before and after the move.
As such, there is a need for any business that wants to relocate to plan a budget. This can be so stressful, and companies should seek the help of professional movers. They help in calculating the cost of corporate relocation as well as that of the employees. Here is how to arrive at relocation cost.
Get a project manager for the move
Relocation operations can be daunting without a project manager in charge of it. The manager should be in charge of budget creation with the help of professional movers.
The manager should communicate with customers and employees about the move and work with vendors, suppliers, landlords, and insurance companies. You should pick one that has the motivation and capability to make work easier.
List all the steps involved in the relocation process
Having a clear plan on what processes are involved make the work smooth and stress-free. Include all the meeting schedules with the building management and contacts service providers such as cleaners, internet, and phone and cable institutions.
The other necessary action is contacting insurance firms to cover the new location and opening bids for professional movers. Steps such as informing the customers and suppliers, notifying media, directing employees, and creating a budget are also necessary.
Compute the employees’ hours needed to relocate
Some of the staff hours will be used in relocating the business. The total comes from time for preparing the office for relocation and time to unpack and settle in the new location. Saving time is essential, and this is one of the reasons to contact professional movers.
As Kenneth Coffey, the owner of Coffey Bros Chicago Movers, mentions, ‘’who has time to pack when you have a business to run. When mover’s services are used, there is a lot of time saved, thus little lost that is easy to recover. As much as you could, the disruption of business should be minimal.’’
Determine space and supplier-related relocation and cost
The high cost when it comes to relocation is related to the new building. The managers should meet the building sellers or the landlord to calculate all the expected expenses. Space-related relocation cost includes down payments, broker fees, deposits, cleaning expenses, premature lease termination penalties, moving-in feeds, and any other closing charges.
The current and future supplies should also be contacted to get the overall cost involved. Entrepreneurs need to know premature termination costs, connection and disconnection charges, new service agreements, and the cost of acquiring new equipment.
Classify the physical assets
There is a need to do an inventory of assets: moved, sold, disposed, or donated. The professional moving companies can help and thus should be contacted before they submit their bids. By looking at the assets to be moved, the movers can provide estimated and advice if any insurance is needed to cover any broken, stolen or lost items.
Creating a budget split into direct and indirect expenses
Before doing this, ensure that you have a list of media outlets and customers that should be informed on the relocation. Calculate the cost of contacting them and include that in the budget.
The budget should then be divided into hard and opportunity costs. Hard is the direct expenses that involve paying cash. The indirect loss, also known as opportunity cost, includes lost sales and a decline in productivity.