The decision to open another business location can be tempting, especially if business is booming and everything is going according to plan. However, it is not one to take lightly and there are a variety of factors to consider before deciding to follow through with it. Use these tips below to help make your decision on whether to expand or not a little easier.
Know your Purpose:
If you want to open a new location, know your purpose and don’t lose sight of the bigger picture. It is easy to get caught up in the excitement of looking for real estate and the endless design possibilities. Determine what your goal is for the new location; are you expanding to help meet demand? Maybe you’re interested in seeking out a new market? Whatever your reason may be, make sure to keep this at the forefront.
Select Location Wisely:
Choosing a location is one of the most important aspects of the whole operation. A location can make or break you, so it’s important to do your research on different areas. Ask yourself questions such as:
- Is it far enough away from your existing clientele, so that you can open the door for new customers?
- What does the competition of the surrounding area look like?
- Is it still close enough to continue to boost the success of the brand you’ve already built?
- What are the rental expenses? Any renovations needed? How accessible is it by foot and vehicle?
Weigh the Alternatives:
Before jumping into new territory or adding another location, it’s important to consider the alternatives. Ask yourself questions to make sure that this is the best growth option for your business. Also, consider if there are any other avenues you could implement first before adding another physical location. These questions aren’t to steer you away from another location, but to ensure that you can feel confident in the extra financial expectations and commitments to come.
Build Your Brand:
The key to having the same success with your new business location as your first is to continue to build your brand. It’s easy to think that just because one business is successful already you don’t have to do as much work with the next. Don’t make that mistake! It is just as important to keep branding and marketing your business whether you have 2 or 50 locations.
There are a bunch of ways you can promote your business such as social media, word of mouth, existing customers, and other traditional advertising attempts.
Reiterate or Continue What Works:
It can be tempting to want to try new things and to implement different ideas when you are deciding to open a new location. However, new experiments often lead to failed growth efforts and can do more harm than good. Continue to utilize what has worked well for your business! Make sure that if you do want to give a different approach a try, you have thought it out and are willing to make changes if it doesn’t go as planned.
Acquire The Right People:
Opening a new location will require you to be all in until you are able to get it up and running, and to do that comfortably you will need people who you trust to manage that responsibility while you are away. Hiring the right people to come into your new location is key to making your multiple businesses successful and will help you stand out from the rest.
Safeguard Your Investment:
Expanding your business means also growing the risk that comes along with each new venture, so it is important to safeguard your investment. Risks such as theft, lawsuits, workers’ compensation, and commercial property damage are all things you will need to consider. If you aren’t sure where to begin give your local agent a call and they will be able to help customize a business insurance policy that covers your needs.
Determine Cash Flow:
Since you are thinking about opening another business location, this typically means your existing business must be profitable. Although business may be going well, you will still need to consider the cost of obtaining another location. It can sometimes be more than you planned, so determine your cash flow and plan out a budget before you jump right into the market.
Prioritize Company Culture:
Each company has something that makes them unique and special, so it is important to carry those attributes to each location you open. Having these core values as a priority will help the successful habits from your existing business transfer over to your new business.
Have Confidence in Growth:
Growing and expanding into new territory can be scary because you aren’t sure how things can play out and if the expansion will be beneficial. Have confidence in yourself and your business! You have come this far for a reason.
Opening a new location comes with a lot of variables to consider before doing so. Don’t rush this process - instead take your time to research and strategize so you can be one step closer to owning and operating another successful business.