Moving a business inevitably brings up a lot of financial issues and questions. For example, big companies which may want to construct buildings such as auto plants or semiconductor factories are often able to get highly publicized tax concessions worth many millions of dollars.
Smaller companies, however, are very rarely afforded such perks due to the fact that these sorts of incentives are based on the amount of jobs that a business will create when it moves to an area. On the flipside though, an entrepreneurial sort may be able to get a cash flow windfall by selling off land or a business that has appreciated in value and then go on to rent or purchase space at a lower cost.
Quality of life is an even more intangible issue when it comes to the relocation of a business. Companies that are evaluating such a move often look at education facilities, healthcare, recreational opportunities, crime rates, climate and other factors in order to evaluate the quality of life offered by a new city. This is why many deteriorating inner cities are beginning to lose businesses, with companies going elsewhere for a better quality of life.
Although moving can be risky for a business, it can also be one of the greatest business decisions you ever make. Expanding or moving into a location actually puts the odds very much in your favor, as companies which have been operating for some time now are well aware of all the problems with their current location and know what to look for when looking to move someplace new.
Jon Huser
