Business owners always look for increasing the profits and cutting on cost. One of the ways to keep the business profitable and customers satisfied is by relocating the business to another Country or state. There is a number of factors to be considered to pick the best location for business. Every year many entrepreneurs find the grass greener on the other side of the fence and a change of place looks like the best path to growth. According to Sharon K. Ward, an economic development consultant, businesses commonly cite five main reasons for moving. These are labor and workforce issues, the desire to reach new markets, to lower costs and increase cash flow, need to expand facilities, and consideration of the quality of life. Every business has different concerns at different times and move can be attributed combination to these concerns.
Relocating a business must make financial sense to be successful. Countries and states offer both financial incentives and tax breaks to assist with the move by providing grants, assistance with infrastructure costs and other financial support for any efforts that benefit the state’s economic development and provide new jobs. Companies give consideration to states that do not collect property or inventory taxes, do not levy sales tax on manufacturing equipment, materials, and products.
The existing infrastructure also plays a role if the company will relocate. A company that manufactures products depends heavily on infrastructure and transportation system to receive raw material and deliver products on timely schedule. Warehousing solutions, office space, and retail outlets are the influencing factors for companies.
One of the major reasons for relocations is the need for a suitable workforce. For the firms requiring qualified workers with technical skills, it will be worth to relocate to an area where you can find these kinds of employees.
Quality of life aspects are of great importance for companies considering relocation. Good schools, affordable housing, nearby shopping and cultural attractions are the factors influencing the move. Pollution statistics, crime rate, health care, cost of living and the climate are also the part of it.