How to Calculate Business Relocation Costs

by Contributor; Updated September 26, 2017

How to Calculate Business Relocation Costs. Accurately calculating the costs of a business relocation requires an extraordinary attention to detail, since it's easy to let something fall through the cracks at the last minute. By taking the time and energy to list every possible expense, you will be able to calculate business relocation costs with a surprising degree of accuracy.

Calculate the start-up costs required when you relocate your business. These costs include a mortgage or lease deposit on your new property, any construction that will need to be done to conform the space to your specifications, new insurance policies, all permits and licenses required by the local government and deposits or connection fees for all utilities, including power, water, telephones and Internet hookups.

Add all of the costs incurred by the actual relocation. This will include the costs of the business movers, business relocation consultants and real estate agents you have hired to help with the move. In addition, it may be wise to perform an inventory of all equipment, furniture and products before and after the move to eliminate the possibility of shrinkage.

Determine the impact the relocation of your business will have on your staff, and whether you will be able to absorb most of the expenses of moving them to a new area. If you lose some of your employees because of the relocation, you will need to assign a cash value to the cost of hiring and training new employees.

Investigate whether there will be any interruption to your core business during the relocation. In a perfectly executed relocation, the customers will never know that you moved until after it has occurred, and there will be no change in your ability to serve them. If the move does require that you shut down operations for a set period of time, you will need to include an estimate of the business lost when you calculate the costs.

Include any miscellaneous costs that may be incurred when you relocate your business. These may include making changes on your website, product information or business literature to reflect your new address, signage that may need to be installed on your new property, or the cost of sending relocation letters to all of your vendors, business associates and customers.

Tips

  • Consider hiring a professional business relocation consultant to help you calculate the costs of moving your business. These individuals are trained to know every conceivable expense in advance, allowing you more time to plan the actual transition.

Cite this Article A tool to create a citation to reference this article Cite this Article