Since January 2020, the world was shocked by the sudden rise of COVID-19 cases, which rapidly spread throughout different parts of the globe. Despite this mainly being a healthcare concern, it has affected other sectors, including education, climate justice, and most known to all, economic growth.
With social distancing protocols implemented, many business ventures had to do their best to survive. Sadly, not all were able to do so. Having this in mind, small businesses had to either innovate, deprioritize, or re-strategize to save what was affected by the global crisis. One major concern that many business owners had to consider was relocating their small businesses.
The Challenge For Small Businesses
Given the changes and adjustments small businesses have to go through, economists suggest relocation as one way to help minimize costs and help business ventures survive, momentarily at least, in this worldwide health problem.
According to economist Jeff Tucker, 64% of people scouting for new homes to live in are eyeing suburban areas more than the cities because of its lower cost of living. In comparison, many believe that small businesses are fleeing populous cities such as San Francisco and New York and heading towards areas that have lower rental rates and cheaper daily living expenses. Inman, an author for the UrbanBound, calls this the “Suburban Shift.”
True enough, this phenomenon has been observed in many American companies and businesses, seeing it as a trend that caters more to the changing needs of business employees. With the end of the COVID-19 pandemic still looking indefinite, the need to cut costs for small businesses is a must – and relocation is just one of the ways around it. Yes, it may lessen one’s income for some. Still, the overall savings and lessened expenditures are a major win, especially for businesses struggling to make it through this very crucial time in history.
For those planning to relocate their small businesses, it can be a little difficult to get started knowing this is a major decision that needs intense thought. Enumerated below are some helpful tips or factors that might help your small business out:
Comparing & Computing Costs
Operating businesses in populous cities cost more because of the competition. With property, retail space, and the existence of higher-priced neighborhoods, the median price point sums up to be higher compared to suburban areas.
Knowing this, it will be helpful for small businesses to research and compute business costs and compare it from area to area. In this way, you can get an overview of the overall costs you would need when operating in a certain area. You can better understand which area or site would be wisest for relocation, so you can manage your business better and survive the pandemic implications.
Research for Business Loans
With the coronavirus pandemic sweeping so many businesses out of the industry, proactively looking for financial solutions is one of the key solutions to ensure survival. Besides comparing prices, finding a suitable small business loan may help. You could look for a long-term fixed-interest commercial mortgage deal with the best rates, or maybe an interest-only payment loan if you’re expecting a large payout in the future. Whatever you choose, a loan can help you invest in new opportunities and continue your business growth, so your profits don’t plateau.
Reassessing the Space You Need
In some cases, business or store spaces do not really reflect the amount of space the business needs to operate at a minimum. If your business is a simple gift store, maybe operating in a big space isn’t a necessity. When the idea occurs to you as an owner that you can still function well even in a small space, relocating is definitely something you should consider to lessen the costs you are paying for your rent.
BusinessNES, one of the leading affiliate advertising programs linked to Amazon, enumerates 50 small space business ideas that might help you assess your business’s need for big or small spaces.
Transportation and Technology Costs
In the current pandemic, the need for physical interaction certainly lessened, especially with social distancing rules implemented. With this, it might be helpful to re-evaluate additional business operations costs that could be considered in the process of your relocation. Cities are definitely more chaotic for commuters than suburbs because of the higher demand and more congested areas.
If your business does not need to commute now and then, relocating is a great way to remove these unnecessary costs. To add, with technology bridging more gaps than before, it is easier to do remote meetings and the like. For businesses that might not need face-to-face interactions, areas with less commuting might be good for your business to prosper without added expenses.
Relocation, the New Solution?
For now, we cannot say for sure when the COVID-19 pandemic will end. It’s high time for small businesses to think smart about major decisions to get through.
It’s good to acknowledge that relocation is a big challenge that small businesses have to face. Still, it is definitely one solution that can help ease the financial struggles of business owners. Although there are multiple factors to take into consideration before proceeding, getting started can be managed by computing living expenses, investing in business loans, reassessing business strategies, and re-computing unnecessary costs. Through this, businesses can find ways to cope with this pandemic.