Whether a lease is up, a business has grown, or the lingering smell of the fish monger next door has started seeping into the dreams of employees, there are many reasons for a small business owner to change location.
The key to a fruitful move, said Orest Kelebay, president of Max's Market, a Bloor West prepared food store, is forward thinking."Successful companies are looking at the horizon, not down at their feet," he said. "You go when the opportunities present themselves."Kelebay, an entrepreneur who owned a handful of restaurants before opening Max's in 1999, has launched a second location on the Queensway near Islington. He bought land there three years ago in the leadup to major development projects in the area. As more stores went up and condos began to fill, he realized the market was ripe to expand his business. But for many entrepreneurs, moving doesn't come at such opportune times. Often businesses change location because their lease is running down and they're unable to negotiate a reasonable deal with their landlord, or, said Katherine Roos, Enterprise Toronto's small business manager, because "there's no revenue coming in, there's no evidence of growth, their correct customers aren't coming in the door."She says moving is a difficult process. It means potentially losing customers and having to re-establish a presence in the community. "You want to do your homework," she said, adding that retailers must always keep an eye on the demographics surrounding their business. If the age, income level, ethnicity and family status of nearby residents don't line up with what they're selling, it may be time to hit the road. But not every entrepreneur has to worry about customers. For commercial business owners, low rent, ease of access for employees and presenting a professional image to investors takes precedent. "If you're working in a condo or unattractive office space, you're going to lose investor confidence," said Sunny Verma, owner of the tutoring start-up Tutorbright, which recently moved into new offices in the Toronto Star building at the foot of Yonge Street. He added that many entrepreneurs don't think about the offices surrounding their company when they move into a first location, and they can use a new space to build partnerships. "Our business more than doubled since we moved to this location because we were able to synergise with people targeting a similar audience." For his part, Joseph Paradi, management professor at the University of Toronto, said it's easier to move than open a new business, but added that it's often better to stay in the same location when possible; if a need for expansion is driving your move, it may be better to ask a landlord to increase your space or see if there's a bigger location nearby. He also stressed that expansion comes with additional overhead, and entrepreneurs have to be careful not to grow too quickly.Kelebay agreed that moving is a balancing act, but said that while there may never be a perfect time to change locations, business owners need to be willing to take the plunge when opportunity presents itself. "There's no instruction book," he said, adding the key to moving is simply to "make good educated guesses - you've got to be smart."