Moving your Office is a complex task for a business owner that requires careful planning and budgeting. It’s important to realize that unexpected expenses are associated with relocating your business, and you must be ready to cover those expenses. If not, it can lead to significant financial setbacks that could take years to recover.
We’ll explore these additional costs associated with moving an office and how you can plan for them to save time and money. So whether your business is shifting locations or expanding, we’ll help you budget for unforeseen costs and avoid financial surprises down the line.
Definition of Moving Your Office
Moving your office is the process of relocating a business from one physical location to another. It can involve moving across town, across the country, or to another country.
Moving an office requires careful planning and budgeting to ensure that all equipment, furniture, files, and documents are moved safely and efficiently. If your business budget plans for unexpected costs, you can ensure that your move goes as smoothly as possible and that you don’t have any surprise expenses.
Moving Budgets
Moving an office is a significant investment in time and money, and it pays to be prepared for unexpected costs. Therefore, a contingency fund must be available to cover any unplanned expenses.
Credit cards and savings accounts should also be considered part of a budget planning process; they can provide flexibility when dealing with these unexpected moving expenses.
Large expenses can be paid in small amounts using monthly payments. If savings are insufficient, a business loan may be a necessary resource if extra funds are required.
Unexpected expenses can make the initial budget insufficient, so anticipate the unexpected.
Overview of Common Hidden Costs
Many hidden expenses come with relocating your business, so it’s important to plan ahead and budget for them before you start packing up your office. Unexpected costs can range from thousands of dollars in repairs or replacements to hundreds of dollars in permit fees or fines. Common hidden costs associated with relocating can include:
- Boxes
- Bubble wrap
- Dollies
- Equipment costs
- Fuel expenses
- Heavy items
- Insurance costs
- Maintenance costs
- Marketing expenses (rebranding, advertising, public relations)
- Parking permits
- Payment delays
- Storage space
- Termination fees (if breaking the lease)
- Truck rentals
Payment delays from vendors can occur, which should also be considered when budgeting. If vendors do not pay on time, this can limit the money available for the move.
To avoid any nasty surprises during the relocation process, it is essential to budget for these hidden costs ahead of time and have a contingency fund available to cover any additional expenses that may arise.
Truck Rentals
Depending on the size of your move, you may need to rent a truck to transport all of your items safely and efficiently.
This can be particularly costly if you have large or heavy items that require specialized equipment, such as ramps or dollies. The average cost of truck rentals can cost anywhere from several hundred to thousands of dollars for a one-way trip, so it is important to factor this into your overall budget planning process.
If hiring a professional company, it may be helpful to save money by moving during the offseason (winter or fall) when prices are lower. [1]
You may also need to rent a storage unit if you cannot move all of your items in one trip; this could add another layer of costs. For these reasons, you must include truck rentals in your budget and emergency fund when planning an office move.
Storage Unit Rentals
Storage unit rentals are another hidden cost when relocating an office. On average, storage facility rentals can cost anywhere from several hundred to thousands of dollars per month, depending on size and location. This is not a negligible extra cost.
There may be additional fees associated with storing items in a storage facility, such as:
- Insurance
- Environmental control (e.g., temperature or humidity)
- Access fees
To help contain costs associated with storage unit rentals during an office relocation, a good rule of thumb is to rent for only the time necessary rather than paying for a full-term lease; however, make sure that you have enough space available if you choose this option.
Maintenance and Equipment Costs
Maintenance and equipment costs should not be overlooked when relocating an office. It is important to factor in these costs when budgeting for the move. Miscellaneous expenses regarding maintenance may include repairs or replacements of any damaged items.
You may need to purchase new equipment such as computers or printers, if the ones you have are outdated or incompatible with your new office space.
Don’t forget about any additional fees associated with transferring existing services such as internet and phone service to your new location.
Different providers may have different rates and fees associated with transferring services, so research this ahead of time to ensure that you’re getting the best deal possible for your company.
Parking Permits
Moving your office can come with unexpected costs, such as parking permits. Parking permits may be required in certain areas and must be obtained before the move; failure to do so could result in costly parking tickets.
To ensure smooth sailing during your move, make sure that you research any local parking regulations and obtain the necessary permits ahead of time. This will help minimize the risk of receiving a ticket for illegal parking or blocking traffic while loading up the truck.
Cleaning Crews
Cleaning fees are one of the hidden costs of office moves that businesses must consider when planning their relocation. For most commercial properties, leases typically require a deep Cleaning of the office space during a move.
This cleaning can include steam cleaning carpets, buffing floors, and wiping down walls and ceilings. The cost of hiring a professional cleaning company can quickly add up, especially for larger spaces. However, the cost of not complying with cleaning requirements could result in lost security deposits or even legal fees.
Businesses may need to budget for cleaning services at the new office space before they move in. This can include dusting, deep cleaning restrooms, and disinfecting frequently touched surfaces.
Investing in professional cleaning services before moving into the new office space can give employees a fresh start and create a healthier work environment.
To mitigate the cost of cleaning, businesses can opt for a DIY approach, but this still requires time, effort, and purchasing of cleaning supplies.
Loss of Productivity
According to smallbiztrends.com, 30% of people surveyed, felt an office move was a distraction. [2] Unexpected moving costs may be less obvious. Office moving budgets usually take into account direct expenses, but they may not always consider indirect ones. One huge hidden cost associated with moving offices is the resulting loss of productivity during the moving process.
With packing, moving, and unpacking an entire office, employees’ time is diverted away from their core job functions, which can result in a dip in productivity. Teams may be unable to finish projects or meet deadlines due to the move, leading to lower output, lost revenue, and dissatisfaction among clients or customers.
Communicate the plan and timeline with clients and customers to set proper expectations and ensure that any changes or delays are communicated promptly and transparently. By anticipating this cost and planning accordingly, businesses can minimize the impact of this downtime on their productivity and, ultimately, their bottom line.
The physical aspect of the move, such as lifting and moving items, can cause employees to put undue strain on their bodies. This can lead to increased absences post-move or workman compensation claims. The solution?
Hiring professional movers with competitive rates such as Matt’s Moving can be a valuable investment in ensuring a smooth and efficient office move. Their experienced team of movers will not only help with the heavy lifting but their packing service will assist with your packing and unpacking of equipment and supplies.
This will help to minimize the impact on your employees’ time and productivity, allowing them to focus on their core job functions. Our moving experts can help to prevent damage to your office equipment during the move and provide the necessary insurance to protect against any accidents or loss.
If you are preparing for an office move, consider hiring Matt’s Moving to help ease the stress and ensure a successful relocation. Contact us today for a consultation and quote.
Sources:
[1] The Benefits of Office Relocation. (2023, March 22). The Benefits of Office Relocation. https://www.business.com/articles/office-relocation-positives-to-moving-your-business/
[2] Small Business Trends. (2023, June 3). Small Business News, Tips, Advice – Small Business Trends. https://smallbiztrends.com/
