Success in business is as much about where you are as who you are. Location is one of the key factors that could drive your business to bigger and better heights, impacting everything from who works for you to who you sell to.
Save On Operating Costs
In every town and every city in every country across the globe, you will find that goods and business resources come at different costs. Nothing is set in stone, from internet fees to property, and this is how you can save on operating costs.
When you compare the cost of living and owning property in Warsaw, a city with good access to resources and educated people, as opposed to ‘business juggernaut London’, you’ll find that costs can be cut by over 50% (1) simply by setting up shop in the Polish capital. This is even before we start to look at costs associated with tax, such as corporation and VAT.
You don’t have to head out into the infrastructure-free wilderness to see vast savings. There are many locations like Warsaw, Taipei or the British Virgin Islands that offer excellent access to resources and international links at a fraction of the price of big name cities like New York and London. This all means you can drastically reduce basic expenditure and invest more money in business improvement.
Find New Employees
The people behind a business are key to its success. They spin the wheels and keep everything moving forward. The trouble here is, you need the right people to make success happen and the right people aren’t always easy to find.
You might have tried hiring with no luck, or you might have already hired but just didn’t get the people you were after. While this can be frustrating, you haven’t simply reached the end of the line when it comes to business growth. Making a move, be it a domestic or international relocation allows you to diversify your employee base and reach new and skilled individuals (potentially at much lower labour costs) than you otherwise never could have met.
A good strategy for this is to relocate your business to a university city where students have been studying subjects related to your business, such as technology or marketing. These are fresh young minds just out of the gate, looking for a start and a chance to prove themselves; often willing to accept low wage packets as well.
Reach New Markets
Once you’ve capitalised on your local area, it can seem like growth grinds to a halt. This isn’t to say you are doing badly, you might be doing very well, but profits and growth have hit a ceiling; the market has been tapped. This is more often the case for a business operating in a town with a finite local market, without access to international customers or millions of people at their doorstep as you would find in large cities.
Relocating to an area with a larger market for your business throws you back into a place of growth and expansion. Initially, you may have to spend time building a client base again, but instead of hitting that metaphorical ceiling you hit before, you can now keep on evolving, as the market isn’t constrained by the limits you had before.
What is absolutely key here is to ensure you relocate to an area that has a market to tap. While it may seem obvious, ensure you take your business where it is wanted and/or needed. Selling tech? Relocate to an up-and-coming area with a vibrant and youthful population, don’t move to a historic city with little in the way of innovation but a large population. Find your market, find where you fit.
Cut the Competition
There are plenty of advantages and disadvantages to business competition. (2) Sometimes having ample competition can be a blessing. For example, if you own an antique shop in a town full of antique sellers, your town becomes known to collectors and you gain business through notoriety, nothing wrong with that.
Competition isn’t always good though, and more often than not it means another business is pulling customers and resources away from you. This can lead to increased costs of resources, or it can mean reducing rates to draw in customers. Either way, it affects your bottom line in a negative way.
Instead of fighting competition for a share of the market, relocating offers you a chance at a new market without as many major competitors.
About the author: Heather Darby is an International Relocation Expert with Corporate Relocation, she is an expert in her field with nearly 30 years in the moving abroad business.