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Businesses grow. Products change. Economies flourish or flounder. Any combination of these or other factors can lead you to consider the possibility of relocating a business. As you consider the reasons to relocate your business, your primary concern has to be how the move is going to affect your bottom line. Don’t make any move without first considering all the factors for relocation and determining what the move may do to your customer base.

Work Force

If you need a specially trained work force that works for reasonable wages, you want your business to be easily accessible to your source of labor in order to attract and retain qualified employees. Perhaps you may have had an ample supply of qualified workers when you started your business, but as the business grew you found it harder to find additional workers willing to work for the wages you wish to pay. If your employees must have special training, it may make more sense to relocate the business closer to educational facilities where the workers receive their education.


It’s not uncommon for a new business of any type to start in a small building. As business grows, the old facility is no longer large enough to serve the needs of the expanding business. It’s only natural that the owner would list larger facilities in his business plan as one of his reasons to relocate. In some cases, the electrical, water, sewage and other utilities simply cannot handle the requirements of the business. In others, the building may be deteriorating to the point where repairs are no longer feasible. Rental costs may be increasing at a rapid rate, which makes it impractical to remain at the location.

Customer Base

Businesses that provide a service to their customers need to be near their source of income. As neighborhoods change, the customer base may dwindle. In that case, a business owner may want to relocate his business so he can attract a newer, larger group of clients. If the neighborhood is in an area that is deteriorating economically, the business owner may need to move his business to a locale where he can operate his business profitably.

Tax Considerations

Some cities offer tax breaks to attract new business to their community. These tax incentives may be in the form of property tax abatement, sales tax exceptions, income tax reductions or other tax breaks on infrastructure improvements. If your business meets their criteria, you may be able to relocate your business and save a considerable amount of money on taxes. While this is seldom the single reason for moving, it may provide the last push needed to make the decision to move.

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