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The Pros and Cons of Office Relocation

Business expansion

Nothing is wrong with starting small. Most business owners do… and usually, you should. When is the right time to expand or  move into a bigger office space? At what point will it be a good financial decision in the long term to move to a bigger space? Not just that, but what are the pros and cons of relocating a business, even within the same community?

We help our practitioner partners acquire their first space and then future spaces as time goes on. Sometimes we build the space from the ground up or renovate it to house a medical practice perfectly for many years to come. These clients typically don’t have to upgrade as often, but naturally, when the time comes, we help them time their move and execute it the right way.

Here are some things to consider:

Timing is everything

Why are you moving? Are you upgrading just for a change of scenery? Just for a shorter commute? These can all be legitimate reasons, however, there are much more important things to think about (in our opinion!). Think about what drives you and try to make a list of your reasons for moving or expanding.

Do you feel like you could be doing more business with a bigger space? More importantly, do you think you could increase production with another few hundred square feet?

For example, if you are currently working with 3 patient care spaces in your practice, you can see 3 patients at once, and generally, you’ll have a few more out in the lobby waiting. What if you had 4 rooms? Or 5? Chances are that you would have shorter wait times because you would be able to help more patients at once. You might even be able to get another doctor (and their patients) involved if you had this extra couple of rooms.

If you are known for having longer waiting times than many other doctors, how many patients are choosing to go somewhere else before even coming into your office? How much revenue is your practice missing out on because you simply don’t have enough space to conduct business properly? This is mainly what you need to think about.

Risks of relocation and expansion

If you upgrade to soon, you risk spreading yourself too thin. You will have more space, but you will also lose some of your local patients when you move further from their home. You are going to see a drop in productivity during the move and a larger cash investment per month in the long term.

These issues affect the bottom line. You need to make sure the need to expand outweighs these issues in the long term. They are minimal when a move is done at the right time and for the right reasons.

Make yourself a quick list of some solid reasons you need more space. Do you have an overflow of patients? Do you feel like having a few more rooms or bays would increase productivity over time? These are all things you have to consider.

Make sure it is worth it

If you expand too fast, you run into issues when you are not able to fill up your rooms and you are being hit with bills that are more expensive with the same or less revenue coming in. Patients can opt for someone closer to home when you move. If you upgrade too slowly, you risk missing out on revenue and reducing patient satisfaction with longer wait times, etc. I’m sure you can think of a few offices who should have moved into a bigger space but never did.

The skill comes in identifying the right timing and executing your move the right way, making sure all of your clients are aware and your marketing efforts are ready to launch (even if just for the first few months) in your new home.

To talk about all of this, and more, get in touch with us. This is what we do. We can help you time your move right and make sure you do it right, as well!

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