While every business is different, if you’re a small business owner, then chances are you could probably benefit from moving and downsizing your workspace. While many business owners swear that “Location location” is all about forming a successful business, it depends on the industry nowadays. Thanks to the internet, eCommerce is booming, and due to the COVID-19 pandemic, the online shopping experience has grown even more.
The key to a successful business is no longer about the location of your business but instead how you market it. If you’re primarily selling online or your business workspace is just far too big, then it could be time to relocate and downsize. On the other hand, there are plenty of benefits for finding an office space for rent that’s smaller.
Easier access to assistance
While this will heavily depend on your location, for many towns in the United States (and other countries too), there are incentives for relocating. First, of course, you will want to contact the municipality of the area of interest and ask about their economic development assistance programs. Many of these can offer free tax credits depending on your business; some offer other programs such as free employee training, free or cheap rent for the building, and even reduced utility rates. This is something that you’ll want to do a lot of research on first, but this could be incredibly beneficial for your business.
Usually, more prominent space means for rent or paying more in a mortgage. While ample space is a clever way to improve inventory management, it’s much better to stick to downsizing if you can, as you’ll save a lot more money, and it will be far easier to utilize space as well. Depending on your business, downsizing may be very beneficial to customers, such as lower prices, shipping and handling being much faster, commute times for you and your employees could also benefit from this. While it all depends, downsizing your workspace could prove incredibly beneficial for you and your business.
Another benefit of downsizing is the drastically lowering cost of utilities such as electricity; you’ll use less energy in smaller space. For large offices and workspaces, the lights stay on all the time, and there isn’t a way to turn them off. This even goes for unused spaces such as rooms. By downsizing, you’ll have the opportunity to save a lot of money.
One of the most significant benefits that a business owner can get from downsizing their workspace would be paying lower taxes. While moving from one location to another is a burden within itself, taxes are potentially lower too. Especially if you choose to move to a new county or state where the sales tax is lower, this also will remove inventory or personal income taxes. Of course, you’ll want to think about comparing your current location with the other areas you’re thinking about relocating. There needs to be a big enough difference where the move itself can be justified.