When your business outgrows its current location, deciding whether to renovate or relocate can be challenging. There are costs associated with each option and the evaluation process might seem a bit overwhelming. Let’s walk through the key factors business owners should weigh:
When making a business decision, it’s always smart to start first with the numbers. This takes out any emotion and looks at your bottom line. You need to look at each of your options and walk through each decision point when building this business case. Here is a great starting point when you’re collecting those costs:
It’s smart to build a business case outlining estimates for both options to compare overall expenses.
Depending on the market of your business, the location might be key. When you are considering renovation vs relocation, be sure to do a full evaluation of where your business sits.
If you are looking at staying in your current building, there are specific considerations to think through.
Regardless of which option you choose, the change is not instantaneous. Because of this, you need to consider how your business will be disrupted. What is the cost during this time vs the business opportunity you will see after updating your space?
That said, will this disruption be short term and then provide a more positive experience for both employees and/or customers?
When building out your growth plan, it is smart to do a 1 year, 5 year and 10 year plan. If you take a small hit in the short term, does this open a larger opportunity for the future? Does renovating allow for scalability if your business grows again? Is a new location more future-proof for your business needs?
The answer isn’t always black and white when it comes to the renovate vs relocate decision. That said, look at your short term and long term business plan. Weigh the costs of both options against this plan. Choose the most cost-effection option for your business that supports both your team and customers.
Regardless of your option, you’re likely going to need a construction team to execute your vision. MB&R Contractors has a highly skilled staff and executes all construction work with our in-house team. We follow this model to control the quality of work provided to our clients and ensure we stay on budget and deliver our work on time. We do projects of all sizes and our services include: welding, concrete installation, steel work from fabrication to steel buildings, water control, dump truck services, and much more. MB&R Contractors takes on residential, commercial, and industrial jobs with our own in-house team.