Are you considering moving your business in California? In this article, we will discuss all the challenges you will face if you decide to do so. Moreover, hiring movers Orange County is a great way to secure a good relocation experience. Moving to California will require some adjusting for you and your employees. Most importantly, there are several aspects you should take into account before you decide to move.
Is moving your business in California a good thing?
The state of California is home to over 4 million small businesses which make up 99,8% of total businesses in the state. The state GDP is higher than the average in the United States. The unemployment rate is slightly higher than the national average. This does not necessarily have to be a bad thing for those who wish to move their business there.
The best solution for relocating your office is to hire commercial movers Orange County, which will provide all the adequate conditions to safely transport your equipment and other office supplies. Usually, businesses move because they want to expand or approach a different market. Luckily, California is a perfect place for it. A multicultural state with a variety of people is a perfect place to seek new fortunes. However, some of the obstacles you might encounter while moving your business in California are:
- The regulation complex of the state is always changing
- The taxes are higher in California
- The cost of living is higher
- It is a quite competitive labor market
The challenges that await you in California
Besides good weather and the multicultural residence in the state, the state of California is home to many different small businesses. On one hand, this is a good thing for anyone who wants to start their business there. However, on the other hand, finding a good workforce might be a bit difficult. Also, worth mentioning, the cost of living in California is higher than in other states, meaning you will probably have to raise wages for the workers.
The regulation complex is always changing
One thing this state is known for, from a business perspective, is that it always changes the regulations. This can pose a big challenge to those who wish to relocate their business there. However, according to some polls, these regulation changes are not impactful on how you do your business as much as they are changing the costs of doing business. Regardless, many businesses and entrepreneurs are willing to go with these regulations as they realize it is for the benefit of the whole working class in the state. To prepare for this, we suggest making a step-by-step commercial checklist. This way you will be able to focus on each change individually and prepare for the move.
The taxes are higher in California
This is something many businesses make peace with before moving to California. If you are considering moving your business in California you must be ready to pay higher taxes than usual. The biggest issue many businesses face in the state is to maintain the level of tax payments throughout the year. Because of this, many businesses are leaving the state in pursuit of a smaller tax state to continue their business in. However, if you are willing to go with the flow, we are sure there will be many benefits to reap in the state.
The cost of living
California is a wealthy state. The businesses in the state are making more money than in any other state. However, this means that other things are also expensive. Where there is more money to be made, there will be a more expensive cost of living. Services, rents, food – everything has a higher price in the Sunny State. For instance, an average Californian makes about $63.000 per year, while average citizens of other states in the US make about $53.000 per year.
Although this might seem like a good benefit, with living costs being higher, you will have to spend more to live in the state. So, the pro – you will make more money and offer higher wages to your employees. The con – you and your employees will have to pay more for living in the state.
Moving your business to California means indulging in a more competitive labor market
With a good economy and a low unemployment rate, finding a good employee in California can be difficult. With higher living costs and higher taxes, you would have to pay a good wage to an employee. Because there are many small businesses in the state and the cost of living is high, people are always looking for better positions and jobs.
If you aim to keep your employees or attract new ones, you will have to place a pretty good offer on the table. However, looking at this from a brighter perspective, this usually means that people are willing to work on themselves to improve their skills. This means that you will find a lot of qualified workers in the state.
Be sure to adequately prepare for this move
Moving your business to a new state means taking a risk. This risk can be very beneficial if you play your cards right. Moreover, knowing what to expect once you move your business to California means that you will be ready for new challenges. Moving can be an expensive task to take upon, so consider what is the easiest way to move your office equipment. Moving your office equipment without damaging it will save you a lot of money – and you will need that money once you move. So, do the research and see if moving your business in California is something that is good for the future of your company.