Thinking of expanding to a new location? What to consider
Adding a new location to expand your business is a great opportunity that could prove beneficial on many levels. You can grow your brand, publicize your name to a broader area and, since the ultimate goal is profitability, increase your current revenue.
There are many factors to consider when you decide to add a new location to your business. First, is your budget. Are you making enough money on the existing location where you can afford to float until the new location begins to profit?
Next, when choosing a location you want to think about the local market and its political, economic, social, environmental and demographic situations. These are important things to keep in mind for an expansion because they will heavily impact your ability to successfully expand.
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Political and social climateAn area's political and social climate could be friendly or it could cause a barrage of hurdles depending on the locals' willingness to accept new business, zoning laws or other regulatory requirements. Be sure to explore these aspects carefully before you move forward to open your new location. It may not be worth the hassle if you can't move forward successfully.
Environmental situationThe environmental consideration is of value because you want to be sure the local area supports your business' mission to deliver to customers. Again, local laws may have an impact and you want to be sure the location can support the physical ability to house your business; this could vary depending on what kind of business you run.
DemographicsDemographics are exceedingly important because if your targeted market does not reside or frequent the area, your efforts will be fruitless. The ability to sell in an area to fulfill a need of the local consumer is a critical point. If you can't meet a customer's need, you won't be able to sell; examining demographics is a must before making a move to a new area.
Marketing and local competitionOnce you've examined the location and have decided it's a good area to venture into, you'll have to think about marketing, the competition, and the hiring and training of employees. How you market is going to have a significant impact on the new location's success or failure. It'll be important to know the local market well because this way you can determine how you want to advertise and connect with your new consumer base.
Another aspect to think about is the current local competition. Are you able to compete on an even level, or will they have the upper hand? How competitive you'll be able to be is an important consideration. Think of ways you can differentiate yourself from the competition so consumers will look to your business to fill their needs.
StaffingOnce you've got everything in place, the next thing to do is think about staff. Will existing staff move to the new location or are you going to hire locals to fill the positions. Often a combination of both is the ideal blend of employees. This way you have some staff who know the business inside and out and when you hire locals, you connect with the area and also help support the local residents by supplying jobs.
Ultimately, if you have the right budget in place and your existing location is successful enough to expand, opening a new location is a great way to grow your company. Expanding your business to a new location can feel like a mix of exhilaration and trepidation, but is a great opportunity if you pay attention to the right details and come up with a strategic plan.