Does Your Small Business Need to Be in Town?
Tuesday June 16, 2009
I popped into a local garden centre this weekend that was having a "40-percent-off-everything" sale. I thought, "Oh no! Another local business closing!" but it turns out they're just moving to a location out of town.
The owner told me moving to an out of town location was a "no-brainer" because of the difference in business expenses. Water is a huge issue. At their current location within the municipality, she said, last July the water bill was $798.00. (The municipal water is metered.) On their rural property, in the same month, their water bill was only $50.00 - the amount it costs to run their well pump.
By moving her business out of the municipality, she's also going to save money on municipal taxes, as taxes here are generally lower in the rural areas than they are in the towns. (And her taxes will be quite a bit lower because her rural property is a designated farm; she's combining a blueberry/raspberry growing operation with the garden centre business.) True, she'll have to pay for garbage services, but there will still be a huge tax difference.
She's concerned, of course, about whether or not people will make the drive to patronize her business in its new location, as it is miles out of town. But she's hopeful that they will. "The customers I've talked to are completely understanding," she says. "They know what the economy is like."
What about you?
Would it be possible to move your business out of town? And if it is, would the savings be worth making the move?
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The owner told me moving to an out of town location was a "no-brainer" because of the difference in business expenses. Water is a huge issue. At their current location within the municipality, she said, last July the water bill was $798.00. (The municipal water is metered.) On their rural property, in the same month, their water bill was only $50.00 - the amount it costs to run their well pump.
By moving her business out of the municipality, she's also going to save money on municipal taxes, as taxes here are generally lower in the rural areas than they are in the towns. (And her taxes will be quite a bit lower because her rural property is a designated farm; she's combining a blueberry/raspberry growing operation with the garden centre business.) True, she'll have to pay for garbage services, but there will still be a huge tax difference.
She's concerned, of course, about whether or not people will make the drive to patronize her business in its new location, as it is miles out of town. But she's hopeful that they will. "The customers I've talked to are completely understanding," she says. "They know what the economy is like."
What about you?
Would it be possible to move your business out of town? And if it is, would the savings be worth making the move?
Related Articles:
Follow Me on Twitter.
I think the owner is doing the right thing because currently the business all over the world is suffering big time so to run and manage small and medium size businesses such actions are important though the government should also be supportive that they are not.
I run a small technology ($500K / yr) business out in the country and my biggest problem is courier service, none of the major couriers deliver out here anymore except for UPS. Package mail is also a problem, instead of Canada Post delivering packages to my home office, I have to drive 30 km to a post office for pickup even though there is a post office at a convienence store 3 km from me. Internet access is expensive and difficult to get. Benefits… no commute and a good source of part time workers (stay at home moms, high school students) that don’t want a long drive for part time work.
Thanks for pointing out some of the downsides of running an out-of-town business, Rob. I’m “stuck” in town myself because of my need for Internet access. There are still rural areas around here that have none.