Moving into a bigger office is always part of expanding an ever-growing company. But is it wise to move to a bigger office every expansion, or should you wait for a much appropriate time? This article will look into the pros and cons of moving into a bigger office and what is considered the right time to move for most small businesses.
The Cost of Moving
The cost of moving varies on the location of your office, the number of equipment being moved, and the size of your new office. Experts believe that if you’re only moving to an office a couple of blocks away, you can save money by making a move with the help of your employees. However, if the move is another state away, you can save more by hiring interstate movers. These movers can also make the process of moving a lot shorter, which means that you can get back into business operations as early as you want. Just make sure to plot the day of the move appropriately.
If you want to calculate the cost of moving more accurately, you’ll have to add into the equation your assets during the move, services you need before and during the move, and how much money you’ll lose while your business isn’t operating. By doing these things, you are less likely to lose money during the move.
Now that’s out of the way, let’s get into the pros and cons of moving into a bigger office.
Advantages of Moving into a Bigger Office
Bigger Space
This is the main reason why many businesses move into a bigger office. Bigger space means more space for expansion, especially if you’re planning to add more employees to your company or if you’re planning to add new pieces of machinery or equipment. Additionally, if you’re a consulting firm or one that relies on services, you’ll have more space for your clients as well.
Uninhibited Design and Expansion
Bigger offices mean that you can expand your business in any way you like. Think of it as a fresh new start where you can do almost anything you want. For example, if you’re planning to redecorate, moving to a bigger office can save you a ton of money. Likewise, if you’re planning to have a new office floor plan, moving to a big office can save you a lot of hassle.
Cost Efficiency
Ideally, moving to a newer office means that you have higher revenues at this point, which means that you have a healthy growth margin in the coming years. But, unfortunately, this means that moving into a bigger office can only mean better cost efficiency for your company because you can sustain it. But this can also be a serious disadvantage if you’re not prepared for it.
Disadvantages of Moving into a Bigger Office
Cost of Utilities and Maintenance Skyrockets
Ultimately this is the biggest disadvantage of moving into a bigger office. Bigger offices mean more utility and maintenance fees. The increase of these fees can affect business operations.
The Need for More Sales or Revenue
Because utilities and maintenance fees increase, you’re going to need to earn a lot more. Most experts believe that you should earn at least twice your previous earnings before moving into a bigger office so that you can sustain it.
When Should You Move?
Doubled Revenue
Experts believe that if you’ve doubled your revenue from the previous years, then it’s time to move to a bigger office. The main reason for this is cost-efficiency. You’re growing your business at a fast rate, and you should capitalize on it by having a new office.
Rebranding
If you’re planning to rebrand, then moving to a bigger office should be done as soon as possible. Rebranding is important for every business nowadays, and one way to rebrand is by having fresh new office space for your clients or customers to visit. It’s also a lot cheaper to change the interior of a new office than an old one since you don’t have to tear down old walls.
Digital Offices
Now let’s talk about digital offices. Digital offices are considered the offices of the future, and the number of digital offices has skyrocketed ever since the pandemic’s start. Business owners found a great advantage to digital offices, and that is little to no utility fees. This means more revenue for your business.
Experts believe that some small companies should ‘move’ into digital offices, especially if they are struggling during the pandemic. This will give them the needed revenue to operate in physical spaces once the pandemic has subsided.
So there you go, the different pros and cons of moving into a bigger office and when experts believe you should make your move. Don’t discount digital offices in all of this because it can save your business if you’re having financial troubles.