When you have established a successful business in a particular location, the idea of moving your operations may never cross your mind in a serious way. Sometimes, however, changing market conditions in your current location and in other areas could prompt you to wonder if relocating would help you control costs and improve your bottom line.
Throughout my career as a business law attorney, I have worked with many small and medium-sized business owners in making difficult relocation decisions. In most cases, moving a company is a significant undertaking and should only be done under the right circumstances.
Chicago Helmet Company Announces Relocation of Headquarters
The issue of relocating a business was highlighted this week when Riddell announced that it would be moving its corporate headquarters and testing facility by July 1 of this year. The well-known football helmet manufacturer is currently based in Rosemont, but company officials say that its lease will soon be expiring. According to reports, Riddell considered relocating to Schaumburg, Oak Brook, and downtown Chicago before settling on vacant space in a six-story facility in Des Plaines near O’Hare Airport.
The decision to move to Des Plaines was based, at least in part, on the proximity of the airport as well as accessibility by public transportation. Riddell currently employs nearly 60 people at its corporate offices and the move is not expected to cost the company any jobs.
Important Considerations When Relocating
While the recently-announced Riddell move will only be about a half-mile and is unlikely to affect its operations in a significant way, such is not always the case for other businesses. If you are thinking about finding a new home for your company, you should take into account:
- The cost of your new space: The price per month of your new lease may be fairly straightforward, but there are likely to be other expenses involved as well. You may need to renovate the space, install new wiring, obtain local permits and licenses, and hook up utilities—all while continuing to pay overhead costs at your current location;
- The effects on your staff: If you move your company a substantial distance from your current location, you are going to lose some of your employees. Be sure to factor in the costs of hiring and training new staff members, as well as reduced productivity during the move. If you are going to expect your employees to help with the move in addition to their normal work, you may also need to pay overtime wages as well;
- Business losses and client retention: Will your existing customers continue to do business with you at your new location or will you be starting from scratch? Moving too abruptly without a retention plan in place could have a devastating effect on your client relationships and, ultimately, your company as a whole. Even if your new market seems better-suited for your business, losing satisfied customers could present major problems.
When you are considering a relocation, an experienced Naperville business law attorney can help you make the best possible decision for your company. Call 630-756-1160 to discuss your situation with a member of the team at The Gierach Law Firm today. We have the knowledge and skill to assist you in positioning your business so that you can reach your full potential.