Loading Up the Truck: Changing Your Location - BodyShop Business

Loading Up the Truck: Changing Your Location

Have you ever thought of moving your shop? Are you contemplating a move now?

Most small businesses, at some
point in their existence, consider a move. Of those businesses
contemplating moving vans, cardboard boxes and "We’ve Moved"
postcards, many will follow through with the difficult decision.
For some, a move is just the tonic needed to take the business
to the next level of success. For others, it’s a regrettable decision.

If you’ve ever been through a business-related
move, you already know there’s very little material out there
to aid you in the decision process, never mind the move itself.

What follows is a resource guide for shop
owners contemplating a relocation. What you may find in reading
this article is that your current location isn’t so bad after
all. On the other hand, after you’ve read the last paragraph and
considered the pros and cons, you may be more confident in moving
your shop to new a location.

Reasons to Relocate

Small businesses move for any number of reasons,
but most relocate for one of four simple reasons:

  • they outgrow the space they’re in;
  • they become dissatisfied with the quality of the space they’re
    in;

  • they seek a move to save money;
  • or they simply want to get closer to their customer base.

Before you get too far into the process, you need to pinpoint
your reason for considering a move. If it doesn’t fit into one
of the four categories above, packing up probably isn’t worth
pursuing.

One of the best reasons to move is to get closer to those customers
who will need your services most. It’s often been said that the
three most important real-estate traits are location, location
and location. This credo certainly holds true for body shop owners,
at least when it comes to attracting retail customers. Still,
there are many factors that must be considered in establishing
the optimal location for a shop. You must take into account cost,
size, competition, target market and image when analyzing the
feasibility of a new location.

Analyze Your Situation

One of the first things to do when considering a move is to closely
analyze your current customer base. Ask yourself:

  • How much of my business is retail and how much is insurance-company
    related?

  • How old are my current retail customers?
  • How much do they usually spend?
  • In what services are they most interested?
  • Where do they live, and how far do they drive to get to
    my shop?

Once you’ve got a good idea of who your customers are and where
they live, ask yourself two more questions:

  • Will I be better able to meet the needs of my current customer
    base in the proposed new location?

  • Will I be better able to attract new customers if I move?

If the answer to the first question is no, you’d better be confident
that the new location will help you attract enough new customers
to offset the current ones you’ll lose in the move. If the answer
to the second question is no, you’d better feel certain that your
existing customers will buy more body shop services in the proposed
location.

Further Investigation

Once you’ve analyzed your current customer base, you’ll want to
formalize the process with a comparative demographic analysis.
Demographic data – information regarding average age, income,
home-ownership status, education background, etc. for a certain
geographical area – is key information for any business, yet many
small-business owners don’t know where to find it.

If you’re seriously considering a move, you should obtain
comparative data on the demographics of the market(s) to which
you are considering relocating. If your shop is located in a town
of less than 10,000 people, this won’t be a critical consideration
because the entire town is in close proximity to your shop; however,
the majority of body shops are in cities and towns with more than
10,000 people. For those shop owners, demographic data is vital
to making the right move.

Where do you get this information? Unfortunately, many small-business
owners are told somewhere along the way that they’ll have to pay
some high-dollar marketing firm for such data. In truth, most
entrepreneurs can access the information for free.

The first place to check is your local Chamber of Commerce. Most
maintain current demographic information not only for the area
as a whole, but also for the various segments of their market.
In most cases, this information is provided to them by the Census
Bureau. The data is provided by census tract – areas that generally
consist of a few square miles. So, all you have to do is obtain
the information for the census tracts closest to your existing
business and to your proposed site. Checking all census tracts
within about a five-mile radius should reveal the typical makeup
of the potential customers living close to your shop and to the
possible new location.

If you don’t have a Chamber of Commerce or if yours is unable
to help, try your local library. Nearly every library has census-tract
data on hand in either the Business Reference or Government Documents
section.

If you’re still having difficulty, try your local municipality
office. Most larger towns and cities with populations of 30,000
or more have a business assistance department to help local businesses
with needs such as in-town moves, rezoning, etc.

Another valuable piece of information – also accessible from a
Chamber of Commerce, library or local government – is traffic-count
data. Comparing the number of cars that pass your current shop
to those that pass the new location(s) will provide valuable information
to consider in your moving decision.

Just the Right Size

Whether you’re considering a move due to the size of your current
space, the dimensions of the proposed space must be closely scrutinized.
You don’t want to commit to too much space because the cost might
drain your cash flow. On the other hand, if your new space is
too small, you may soon outgrow it and precipitate yet another
moving decision long before you’re ready to again put yourself
through the hassle.

If your current sales are growing, a good rule of thumb for choosing
a new location is to rent 10 to 20 percent more square footage
than you’ll initially need. This should provide an adequate amount
of space for expansion without causing you to choke on your new
lease payment.

Note: If you like the location of your current space but just
need more room, consider expansion rather than relocation. If
you own your shop, obtain some quotes for adding on. If you’re
leasing, check with your current landlord to see what he might
offer. You may decide that expanding is a preferred alternative
to packing up and moving into unknown territory.


An Image Boost

Image is a key consideration for any business, and it shouldn’t
go unnoticed when considering a move. Ask yourself a few questions:

  • What is my current image?
  • Am I happy with that image?
  • What would I like to change about it?
  • Could I make these changes in a move?
  • Will my image improve if I move?

A move can be the ideal time to alter your shop’s image. For instance,
you may decide to go with a fancier store front at your new location.
Or, you might be able to obtain a more visible location that would
foster an image of accessibility – something that may be missing
at your current location.

Are you dissatisfied with the name of your shop? A move is an
excellent time to change it. Just be careful not to disguise your
shop so much that existing clientele are lost in transit.

Cost Considerations

Failure to adequately plan for the costs involved in a move can
be very hazardous to the health of your business. There are really
just two areas of cost to consider – the actual cost of moving
and the cost of the new location. If you’re a veteran mover you
know that moving takes more than just throwing your shop equipment,
paints, office supplies and cash register into a truck and heading
across town. If you’re a first-timer, pay close attention.

First, you’ll probably want to hire a moving company or rent a
moving truck for the relocation, especially if your shop is fairly
large. Most shop owners can’t afford to close their shop for a
week or even a few days while they transport equipment and shop
materials across town one load at a time in an employee’s borrowed
van. The money you might save in moving yourself will generally
be more than offset by the lost sales ensued from closing down
unnecessarily.

Second, you’ll have to change the shop’s mailing address and telephone
number on such items as stationery, business cards, your bank
account, return envelopes, Yellow Pages ads and brochures. The
cost for each individual article requiring an address change may
not seem significant, however, the aggregate cost of changing
your address on everything can be substantial.

Next, you’ll need to advertise your new location so customers
will be able to find you. It would be a mistake to move without
doing some advertising, yet many business owners undertake a relocation
without budgeting for ads. With new and old customers unaware
of the move, most owners greatly regret not having planned ahead.
One suggestion to save on relocation advertising is to send a
brief press release regarding the move to the business editor
of your local newspaper.

After you consider the actual costs of the move, you’ll want to
analyze the costs of the new location. If you’re moving into a
larger shop, you’ll likely need to buy additional paint and other
shop materials, furniture, office supplies and, possibly, equipment.
Some remodeling may also be required, and you may need to add
employees.

The key is to consider all the new costs you’ll incur before you
make the move. Sit down and make out a budget of all the added
costs for the new location. Then, try to determine how you’ll
fund the move. If you don’t have the money on hand, you may need
to seek an outside source – such as a bank loan or investor funds
– to help finance the relocation. A move can be disastrous if
you don’t properly consider the costs involved and the means by
which you’ll cover them.

Money, Money, Money;

Projecting new sales is probably the hardest part of the moving
decision, but it’s also the most critical. The bottom line of
any move is generating enough sales to keep the doors open in
the new location. How do you analyze projected sales?

First, complete your budget for anticipated monthly expenses at
the new shop. You can utilize current expense levels in your existing
body shop to estimate what you might spend in your new location.
For instance, if your current utilities bill is $100 and you’re
increasing your space by 20 percent, then you would project $120
for utilities in the new location.

Second, using a projected margin level for your body shop services
(if you aren’t changing your pricing structure, it will probably
be about the same as your current margin level), figure out sales
levels necessary to cover the projected costs.

If you’re increasing your store size 20 percent and it will take
a 50 percent sales increase to cover costs, then you’ll need to
seriously reconsider the move. However, if the sales projections
look reasonable, then you have provided yourself with some tangible
assurance that you’re making the right move.

In analyzing projected sales, be sure to consider any competitive
changes that might occur in the new location. If you’re moving
from an area with no other body shops to a location with another
body shop one-half mile away, it will obviously affect your ability
to attract customers.

Also, pay close attention to your core customers when considering
a move. If the relocation will take you substantially further
away from them, then you’d better consider an alternative location
closer to your core clientele – or perhaps just stay put.

Making the Move

Moving a business is never easy. If you’re currently considering
a move – or anticipate moving in the future – some of the points
covered above may help in making the right decision. If, in the
end, you decide to pack up your supplies, your equipment, your
cash register and your employees, make sure your new location
is one that will make dollars and sense for you and your shop.

Money Saving Movers Tips

Here are a few suggestions that just may help you save some money
in the event of a move.

$ Buy nice used furniture.

$ Negotiate with your landlord to pay all or part of the leasehold
improvements.


$ Negotiate with your landlord on the actual lease payments.

$ Add new employees gradually.

$ Check with suppliers for volume discounts on shop materials.



Check it Out

Most small businesses, at some point in their existence, consider
a move. For some, a move is just the tonic needed to take the
business to the next level of success. For others, it’s a regrettable
decision. Id you’re considering a move, keep in mind these key
points:

  • Small businesses move for any number of reasons, but most
    relocate for one of four simple reasons: they outgrow the space
    they’re in; they become dissatisfied with the quality of the space
    they’re in; they seek a move to save money; or they simply want
    to get closer to their customer base.
  • Before you get too far into the process, you need to pinpoint
    your reason for considering a move. If it doesn’t fit into one
    of the four categories above, packing up probably isn’t worth
    pursuing.

  • One of the first things to do when considering a move is to
    closely analyze your current customer base. Once you’ve analyzed
    your current customer base, you’ll want to formalize the process
    with a comparative demographic analysis.

  • If your current sales are growing, a good rule of thumb for
    choosing a new location is to rent 10 to 20 percent more square
    footage than you’ll initially need.

  • A move can be the ideal time to alter your shop’s image. It
    is also an excellent time to change your shop name as well.

  • There are really just two areas of cost to consider in a move-
    the actual cost of moving and the cost of the new location. Plan
    for those costs to include hiring a moving company or renting
    a moving truck; changing the shop’s mailing address and telephone
    number on such items as business cards; advertising your new location;
    and buying additional shop materials and office supplies.

  • Projecting new sales is probably the hardest part of the moving
    decision, but it’s also the most critical. The bottom line of
    any move is generating enough sales to keep the doors open in
    the new location.

You May Also Like

Body Bangin’: The Disengagement Epidemic with Kevin Wolfe

Micki Woods interviews Leaders Way Owner Kevin Wolfe on why 73% of work professionals are disengaged today and what we can do about it.

Micki Woods, master marketer for collision repair shops and owner of Micki Woods Marketing, has released the latest episode of "Body Bangin'," the video podcast that is taking the industry by storm!

In this episode, Woods interviews Kevin Wolfe, owner of Leaders Way and former mechanical shop owner, on how he became the shop everyone wanted to work at. Wolfe also points out that 73% of work professionals today are disengaged — an all-time high — and discusses why that is and how we can fix that.

Body Bangin’: I Thought We Were Doing It Right with Josh Piccione

Micki Woods interviews Josh Piccione on repairing vehicles correctly — according to manufacturer guidelines.

Body Bangin’: Be a Star Not a Hamster with Robert Snook

Micki Woods interviews popular keynote speaker Robert Snook on how to differentiate and grow your business.

Body Bangin’: Know Me, Know My Car with Mike Anderson

Micki Woods interviews Mike Anderson on the importance of building an emotional connection with your customers.

Body Bangin’: Fighting for Consumer Safety with Burl Richards

Micki Woods interviews Burl Richards on his personal mission to fight for consumers’ rights and safety.

Other Posts

Body Bangin’: The Employer-Student Disconnect

Micki Woods interviews Raven Hartkopf, lead collision instructor at Collin College in Texas, on what students want from a shop employer.

Body Bangin’: Why Follow OEM Repair Procedures?

Micki Woods interviews Logan Payne of Payne & Sons Paint & Body Shop on the importance of following OEM repair procedures.

Body Bangin’: Getting Paid for Calibrations

Micki Woods interviews Andy Hipwell and James Rodis of OEM Calibration on how to get started doing ADAS calibrations.

Body Bangin’: What Are The Consolidators Up To With Laura Gay

Micki Woods interviews Laura Gay of Consolidation Coach on the current state of auto body shop consolidation.