The main job of corporate executives, owners of a partnership, and sole proprietors is to make decisions. The selection of an office site can be the most important decision a leader will make. We present here a list of the most common mistakes made in site selection, followed by a checklist covering the critical items that should have been investigated during the site selection process. After completing the checklist and collecting information on anything that was missed, you must make the final decision to relocate.
A nationwide survey of economic development professionals was recently conducted here in California. asking them to list the most common mistakes made by relocating companies. Their responses, ranked from most to least common, are listed below.
The common mistakes made by relocating companies include:
1. Not allowing adequate time to investigate all potential sites in an area;
2. Too concerned with initial costs, such as land and buildings, without fully considering other costs;
3. Making a final site selection without fully taking advantage of all economic development services;
4. Failure to consider the quality-of-life factors that are important to attracting and retaining skilled employees;
5. Failure to consider all environmental problems and regulations:
6. Failure to consider quality and availability of housing in the area;
7. Failure to consider all available incentives and tax relief options;
8. Failure to consider whether local housing costs are compatible with salary levels of employees;
9. Failure to investigate all applicable zoning regulations;
10. Failure to consider provisions for possible future expansion;
11. Failure to fully investigate the tax structure, tax rates, and impact fees of the area;
12. Failure to consider the availability and cost of management, technical, and scientific employees in the area;
13. Failure to consider the needs, desires, and financial situations of employees who would be transferring to the new site;
14. Failure to consider the availability and cost of energy supplies;
15. Failure to consider whether sewage treatment facilities are adequate for the proposed operation;
16. Failure to consider whether airport services are accessible and adequate;
17. Failure to consider availability and costs of semi-skilled and unskilled labor in the area;
18. Failure to consider whether port and waterway facilities are available and suitable;
19. Failure to consider whether railroad services are accessible and adequate; and
20. Failure to consider whether highway access is adequate.
The rank ordering of the items above is a bit deceptive. Number 20 on the list is an exceptionally infrequent mistake according to the completers of the survey, but it does happen. By far, the biggest mistakes made are the first three on the list. These three critical mistakes appear to be caused by time and money factors — “get it done, and get it done cheaply.” Overcoming mistakes requires adequate planning and research, and projecting ahead to changes in the area that will affect future costs.
