Things to consider if you’re planning an office relocation or downsizing

The Covid-19 pandemic has prompted many businesses to take drastic action in order to remain afloat. According to an independent survey of more than five-hundred decision makers from across the UK, a majority of businesses expect to downsize as a result of the economic pressures that are expected in the aftermath of the lockdown. 37% of respondents reported an intention to relocate to a smaller space in 2021.

Of course, making a transition of this sort confers costs, which must be taken into account before the move is approved. Let’s look at a few of the factors that business leaders should consider before taking this drastic measure.

Why Downsize?

Even the most optimistic economic outlook predicts that there will be some pain. For businesses in certain sectors, like events and leisure, this pain will be more pressing. If lower demand is expected, than the existing office space difficult to justify. For businesses already feeling the strain, the move to downsize may be a simple cost-cutting exercise.

Perhaps a bigger driver toward a smaller office space is more to do with a cultural change that the lockdown has enforced. Many of us have made the switch to working from home, to reduce the risk of contagion. Having done so, we may be reluctant to make the return to our old habits, even if the lockdown restrictions relax. With fewer staff onsite, businesses may decide that they can safely downsize without compromising on productivity. Tech firms like Facebook have already incorporated this into their long-term strategy.

Things to consider

If you’re considering a move, then it’s important that you keep your staff and customers apprised of your plans. Get flyers printed detailing the change of address, put a notice up on your website, and posts made on your social media channels.

Your move may result in you having more office furniture than you need. You can dispense with this in a range of ways, and recoup some of your losses. If you’re leasing any of your computer hardware, then you might need to get the vendor’s approval before moving it. Bear in mind also that your storage devices are vulnerable to damage during any move – so make sure that all important data is backed up before you take the risk.

What about Financial help?

If you’re downsizing in order to stay afloat in the short-term, then it might not be the best decision for the long-term health of your business. Cash flow problems can be corrected through borrowing. While finance might be funded through interest, this cost is often outweighed by the hassle, inconvenience and stress of making a move to a new premises for the wrong reasons. At the same time, business loans secured against the premises to which you’re moving can help you to move to exactly the location that best suits your interests for the duration of the pandemic, and beyond it.