Moving a business to a new location is always a big decision that shouldn’t be taken lightly. Relocating can come with some unexpected surprises if you don’t take the time to learn more about the new area.

There are a three of things to consider before relocating your business to California. Before making the final decision, give careful thought to the cost of moving, your employee base, the local economy of the new destination, the demographics of the new area, the cost of living, and the company visibility.

Get the Full Financial Picture

Depending on the type of business you operate, you may have a lot of equipment and merchandise that’ll need to be transported in addition to your own personal belongings. If you’re moving from the east coast to California, the trucking transportation costs can quickly add up to a large sum. Be sure to get a written quote from a reliable trucking company, so you know the full amount in hard dollars. If you’re on a budget, you may even want to consider driving the truck yourself.

Even if you have company funds to offer relocation bonuses and expenses, it’s likely that you’re going to lose a few valuable team players. Some of your employees may just not be willing to leave behind family and friends for a new place. How long will it take you to find and train new employees? What if you need instant skilled employees to run your business? Don’t underestimate the amount of time it may take find new employees.

It’s a savvy move to contact an employment agency to get a good idea what the job pool looks like in the new area. If your business is dependent on employees, having employees in place before the move will keep your business in operation with the least amount of downtime.

Investigate Operating Costs and Demographics

Add investigating operating costs and the demographics of the new location to the three things to consider before relocating your business to California. Commercial leases may be higher along with tax disadvantages compared to your present location. Some states have a seven percent tax on commercial leases, and the sales tax for customers may be higher. As a business owner, you need to know your bottom line.

Once you’ve determined your operating expenses, the next step is to ensure that the demographics of the location can support your service or product niche. For example, if you’re in the skin care industry, you’ll want to make sure the local and nearby areas are populated with women who are 30 years old or older. There needs to be a stable demand for your service or product.

Find a New Place to Call Home

Along with finding a new brick-and-mortar location for your business operation, you’ll need a place to live. Real estate in California tends to be pricey, so you’ll need to determine if you can afford to live in a neighborhood that’s to your liking. If you expect the new location to draw in more business, the higher price of real estate may just be worth it. However, if the higher cost of investing in a home will reduce business profits, it may not be a smart business decision. Without a doubt, knowing the real estate market should be one of the three of things to consider before relocating your business to California.

Before investing in a new home, it may be wise to consider a rental home or apartment.  A one-year lease will give you plenty of time to learn about the area. You can take your time to learn about the school districts, nearby attractions, traffic conditions, shopping venues, and the general community vibe. At the same time, you can explore new homes in California for possible investment without any pressure to purchase.

After you’ve taken all the steps to evaluate the key factors of moving that’ll make or break your business, you’ll be in a better position to make the right decision. Take a business approach to your decision and you’ll be in the black.