How Budgeting and Financial Skills
Can Save Your Moving Expenses
As the owner of your small business, you have collaborated in team meetings with your management team and employees. Analyzing all of your possible opportunities, you decide that it’s time to move your business to a different state.
Let’s talk about budgeting and the financial skills that you need to make this happen for your business! You do not want to overspend on relocating so you can focus on what matters most: taking care of your employees and serving your customers.
Cover Employee Moving Expenses
Leading a small business means focusing on the needs of your employees and customers. Not every employee may be able to relocate due to family responsibilities. Include employee relocation expenses as part of your moving budget.
Try to cover most if not all of the employee moving expenses to take the strain off your employees. If you need your employees to cover part of their moving expenses, remind them that they can claim these expenses on their taxes.
Find the best moving company that can give them quality service for a low price, so that you keep everything at a low cost. Moving companies may give you a deal depending on how many employees you have to move at once to the area of your new business location.
Deduct Your Moving Expenses (If You Can)
Are moving expenses tax-deductible? In most cases, no. The Tax Cuts and Jobs Act of 2017 allow military family members to claim moving expenses on their taxes because of how often our military servicemen and women may have to change their posts in different states.
If you are not in the military, you may be able to claim moving expenses on your state taxes, depending on where you live and work. New York, Arkansas, New Jersey, California, Pennsylvania, Massachusetts, and Hawaii decided not to participate in the federal changes.
Unfortunately, most taxpayers won’t be able to deduct any moving expense deductions on their federal or state tax return until 2026 or later.
Have a Sale Before Your Business Finally Moves
Do many of your customers frequent locally or do they travel a good distance to come to your business to purchase products? Think about the game plan for local consumers that may not be able to visit your new location in person. Find ways to make the products easily accessible with free shipping so that they can continue to frequent your business.
Host a final sale before you make the final move to your new business location. Maybe have a 30% to 50% off inventory sale so you have less to take with you when it’s time to move. Less inventory and equipment to move means you will spend less time with a truck rental or the labor that professional movers need to output to load up the moving truck.
Get Rid of Old Equipment
If you have any old equipment that your business no longer uses, get rid of it before your moving day. Again, with fewer possessions to load on a rental truck or via a moving company, then you will spend less on moving expenses.
If you carry perishable goods, go through your inventory and throw out the waste past the expiration date. Of course, note the number of each unit and their ticket price so you can write off those items as a business loss.
Free Public Relations Using Social Media
Do you need a cost-effective way to tell your customers that you are relocating? Let them know on your social media handles. Have at least two to three different social media platforms in which you reach out to your consumers.
Rather than publishing a press release or petitioning for a radio or television advertisement about the relocation, use social media instead. It’s a completely free public relations avenue to update your customers on different stages of your business relocation.
Post an update on your Facebook and Instagram a couple of weeks before your move. This is when you can let your customers know about your Final Moving Sale, so you can get enough sales to reduce your inventory as much as possible before moving.
The Importance of Planning and Organizational Skills
When it comes to relocating your business, proper planning is crucial for a seamless transition. It's essential to spread out tasks over a few weeks to avoid the last-minute rush. By doing so, you can ensure that your business operations are not affected during the move.
For instance, you can start by packing up items that you do not use often in the storage room, about five weeks before the moving date. This will give you ample time to sort through your belongings and decide what you need to take with you to the new location.
Four weeks before the move, start packing up overstock inventory, but ensure that you have enough stock on hand to continue operating your business. As you approach three weeks before the move, set up your moving truck rental and start a liquidation sale to get rid of any excess inventory.
Good organizational skills are crucial in any workplace, regardless of the profession. For small business owners, these skills are particularly important when moving to a new location. They can make the difference between a smooth transition and a chaotic one.
Staying organized throughout the moving process is key to a successful move. Ensure that you have all the necessary supplies and resources you need for the move, and label your boxes properly so that you can easily identify them at your new location. It's also essential to keep track of your inventory to avoid losing items during the move.
By planning ahead and staying organized, you can reduce the stress and chaos associated with moving your business to a new location. Make sure you allocate enough time for each task and stay focused on your plan to ensure a successful move.
There are many ways to cut costs and capitalize on different financial skills when relocating your business, so good luck and I hope the move goes smoothly.
About the Author
Nancy Zafrani is the general manager of Oz Moving & Storage. A day-one employee of Oz, she has 30 years of experience in the moving industry. As a lifetime New Yorker, Nancy also has lots of experience dealing with small apartments and organizing. Nancy has many interests. Her hobbies include painting, hiking, and baking.