A company relocation business plan should identify precisely where you're moving and leave no doubt as to why. Ideally, if you'll benefit from the new location (presumably you will), this selling point needs to be front and center. Want to be closer to your customer base? Need to be right outside the nearest wholesale distributor for your product? Have to escape a high city tax in order to survive paying your rent and CAM fees? These are all valid, real-life situations for business owners today, and you should embrace the move as a sound business decision. But if you need capital released to get it done – like if you have to present a plan to the bank so that they extend your line of credit to cover the moving costs – you will need to put everything positive about the shift down on paper. Answer these questions:
• What are the immediate advantages as opposed to the far-term benefits?
• What are the shortcomings?
• Are there any risks to the new location?
• How will you manage the business operational downtime, if any?
• What service will you retain for the move?
• What are the total costs?
You'll need a brief financial model that outlines when you can break-even post move – i.e., at which point you will be able to pay off the sum you require in order to make the relocation in the first place. You should also not hesitate to include testimonials or employee comments, if pertinent, and if you know exactly where you're headed, put the new site into the plan with drawings, pictures, or floor plans. The business plan may not need a full financial model, but don't be surprised if at a minimum you are asked to show a cash flow and balance sheet along with a use of funds. MasterPlans has helped companies prepare for corporate relocations on several occasions and we can be your planning partner as well. Call a consultant now, free of charge: (877) 453-2011.
