Hot Cities

Although deciding to move is tough, it's nothing compared to actually making the move. That starts with writing detailed specifications about what your new location must offer. Make sure you understand key motivations, and see that their requirements are met. If your main reason for moving is to tap a better labor market, don't get distracted by a favorable lease offered by a prospective new landlord or incentives dangled before you by an economic development agency. "You wouldn't want to move to find a well-qualified work force only to find that it's worse in your new location," says Ward.

You'll also need accurate and complete information about the new location before you can commit to moving there. Reference publications such as the Statistical Abstract of the United States and magazines such as American Demographics are good places to start. You can also subscribe for a month or two to local newspapers in the cities you're considering (or read them online) to get a general feel for local circumstances.

Be specific when gathering information from other sources, including economic development agencies, chambers of commerce, utility companies, real estate brokers, employment agencies, other small-business owners and so on. Don't ask general questions like "Is there a good supply of affordable office buildings?" Instead, ask "How many 10,000-square-foot blocks of vacant Class A downtown office space exist, and what are the going terms and prices?"

You should also visit any site on the short list of your targets. "I have a saying: You walk it; you drive it; you fly it," says Salvaneschi. Only by walking and driving around a location from various angles can you get a feel for traffic patterns. Aerial views from small planes or helicopters can help you grasp the dynamics of a particular retail zone, he adds.

Making the move itself is another challenge in making the relocation work. It's important to decide what equipment, fixtures, records and other items to actually move. It might be better to dispose of certain items, such as inventory, at fire-sale prices rather than pay to haul them across the country. Some employees might be better left behind as well. The average cost for a domestic relocation of a current employee who owned a home was $53,696 in 1998, according to the latest figures available from the Employee Relocation Council in Washington, DC.

Once you've decided where, when, what and who you'll move, assign someone to be in charge of the relocation. He or she will be kept very busy, with tasks from soliciting bids from movers to keeping employees informed about the plans. Books such as Ward's and Salvaneschi's offer many checklists to help movers marshal the details.

In business, as in your personal life, not every move works out. But by looking closely at their reasons for moving and making sure the chosen spot addresses those needs, entrepreneurs increase the odds that the grass really will be greener and that what appears to be a better city for their businesses will turn out to be the best.

This article was originally published in the October 1999 print edition of Entrepreneur with the headline: Hot Cities.