In a previous post we shared some insights into challenges associated with the bidding process from the General Contractor’s perspective.
Along similar lines, business leaders often struggle with the decision to either expand existing space or relocate to a newly-built facility. Here are a few thoughts on evaluating each option:
Expand?
When evaluating the option of staying-put and expanding, you must first perform a thorough evaluation of current operations at the existing site. Some of the factors to consider in making this decision include:
- Is there sufficient real estate to expand?
- Does the existing location have access to a good work force?
- Is the business climate competitive?
- If so, then the existing site should be a very attractive option.
Build New?
If the decision is made to relocate to a new facility, both the area where the existing facility is located and additional locations should be analyzed as part of the due diligence process. Whether moving in close proximity or further away, key criteria must be explored, analyzed and evaluated to ensure that the company makes the best decision for today and into the future. Some of these issues might include:
- Willingness of team members to relocate and associated costs
- Timeframe for the move
- Potential downtime
- Zoning and land-use issues
Engaging an experienced real estate agent as well as a builder is often beneficial to the company in evaluating the potential new site. Whether it is a parcel of land or an existing facility that is being considered as your new business location, you will need advisors to determine the cost of building and/or renovating to suit your needs.