Tips for Expanding Your Business with a Second Location


Is this the right time to open your business in a new second location? Moving to a second location may seem lucrative if you're running out of space or if your present location is headed downhill. Since the grass often looks greener on the other side of the fence, many entrepreneurs and business owners choose to move to a new location to increase their odds for business success.

Common reasons for moving

According to experts, business owners cite five reasons for moving:

  1. Labor/employee or workforce issues
  2. The desire to reach new markets
  3. The need to upgrade facilities
  4. Lower business costs
  5. Increase cash flow

The reasons for expanding or moving a business to a second location can be different for different businesses at different times.

Labor/Workforce Issues

One of the most commonly cited reason is the need for a suitable workforce. A shortage of qualified workers can be detrimental to a business, especially if your business requires technical expertise. For businesses and firms that require specialized labor, it is well worth it to move to a second location where highly qualified employees are easily available.

Upgrade Facilities

If you find yourself in an undersized or outdated facility, it's worth moving to a new location. You can move to a bigger space in the same location or in a different town or city. Remember that it is easy to find faults with your facilities, infrastructure or services, but you should only make a move out of the original area if it is going to be profitable.


Factors to Consider Before Moving to a Second Location

Cost Issues

Business costs are a major factor in any decision, especially when deciding whether to change your location. Remember that business costs in this case involve more than leasing or renting. Businesses often find themselves in a fix when they have to choose between staying close to target customers and moving to a less expensive location.

You might have to replace some of your best employees

If you move to a new spot, you may have to part ways with some of your oldest employees who couldn't move with you. It is hard to predict what it would take to find qualified employees and train them from scratch. Don't be surprised if you're in for a ride!

You might have to keep both locations running

In most cases, you will have to keep both your locations running for at least 30 days. Running two locations can mean lots of logistical headaches for your new and existing clients, customers and staff.

The cost of relocation will surprise you

The cost of moving your business with equipment, merchandise and furnishing can be surprising. You will need to let your clients and customers know that your business may be ‘slow' for a few days, which can result in disgruntled and irritated clients.

Tax considerations

Get advice from a tax professional to become fully aware of the tax differences between your current location and your new location.


The bottom line is that changing your location can affect your business in unexpected ways. You may have to make adjustments to your office culture and the way you do business. Overall, moving to a new location can give you a better quality of life and more opportunities to attract clients and prospects. However, with its share of benefits, relocation also bring along its share of challenges. When your business is expanding rapidly, making any drastic changes can affect your productivity and work culture.

To make our relocation process as smooth as possible, make sure to plan ahead. There's no set time for how long it should take to move. Try to minimize interruptions to your staff and customers. Do what will turn out to be the best for your business.