According to the Wall Street Journal, many small to medium sized businesses are relocating to residential homes. This change is mainly due to the recession, which has forced smaller scale businesses to search for practical solutions to cut costs.
The good thing is that with the help of technology, and telecommuting in particular, managing a business from home has become extremely convenient. If you are seriously contemplating moving back home as a cost-effective solution, then you might want to take into consideration the following issues Since you are moving your business to the new city there are two options
a. Rent a new home and a new office.
b. Rent a new home and operate from there. This is cost-effective and now possible in the era of the modern telecommunication devices which makes it possible to run the business securely and efficiently from the convenience of a home.
However when you are exploring the 2nd option do resolve and ponder over the following points:
When the migration takes place to a new business premises and when an agreement is done with the landlord it always helps if we find someone who can negotiate certain mutually acceptable and beneficial deal with the landlord before getting a cheap truck rental. One example of this can be the possible penalties that one is expected to pay if one breaks the rent agreement prematurely. If this point can be reworked by someone who convinces the landlord on your behalf it would definitely ensure your peace of mind. This is easier said than done as the normal clauses of any lease agreements are fixed for certain number of months or years. But anyways the fruits of this exercise are worth mentioning to your lawyer so that he tries to make the option available to you.
Other important factors to consider are variances and zoning. Check out if your residential area will allow you to operate business from home, otherwise, this can pose a problem. In most cases, for people whose home zoning belong to residential area, they usually resort to getting a permission and variance from their neighbors. You may want to ask advice and assistance from moving companies and moving truck rental services.
Business insurance is another consideration. If you have business insurance, check with your agent to see how the move will affect your rates. They may advise you to get a rider for your home insurance to protect your business equipment.
Most businesses also opt to retrench employees as part of their cost cutting solution when moving their business to their homes. Check your options and assess if you will be able to operate without any assistance of your employees or should you retain a skeletal work force. You will have to inform them of your plans and the possible arrangements for their health coverage and other benefits.
Another important consideration are the sales taxes, which usually change when you move to a different state or city, requiring a change in the local and state sales taxes that you collect. Of course, while you need to coordinate with trucks to rent for the move, you will also need to notify the authorities such as the state secretary of state, which needs to be notified for the change on business address, agencies for permits and licenses and the IRS and local tax offices.
Migrating your business can be a painful experience if unplanned or done without proper preparation. If a proper focused approach is considered with due considerations of the above mentioned concerns then the migration can be very smooth and with limited or no downtime.