Expanding your business to a new location
Your business is on an epic hot streak and you’re considering expanding to a new location. Boost the chances that your new location will also sizzle by doing your homework before expanding. Here are some critical things to know before you grow.
- First things first. You should probably only consider opening a second location if:
• Your primary business is bringing in a steady profit.
• You won’t be jeopardizing your primary business by focusing time and resources on a second location.
Also, be sure you’ve thought about an online alternative to a new physical location. E-commerce is flourishing in COVID’s aftermath, and could be less expensive for you than creating a new brick and mortar location.
- To do an expansion right, you’ll go through a process similar to when you opened your initial business. Follow the same steps for your expansion as you did when you first launched your business. Thoroughly evaluate the new markets you are considering -- think about your target customer, sales plan, and competitive advantage. Make sure your updated business and marketing plans are just as thorough as the trusty old plan that originally launched your dream.
- It’s all about location, location, location. Once you are confident you’ve found a promising market, you’ll have to zero in further on an exact neighborhood and building. Take your time to find a building that you can rent or buy which meets your needs in an area that has qualities important to you—whether it be proximity to a highway, easy parking for customers, a high level of foot traffic, or whatever else could make or break your business.
- Take stock of your finances. Project the estimated costs and estimated revenue for your new location, and look closely at your balance sheet to make sure you can cover the costs of expanding. If you don’t have enough capital, you can try to get more funding with a business loan or line of credit.
- Dot all the i’s and cross all the t’s. Expanding your business to a new state, county, or city isn’t very different from opening a new business there. You’ll need to register your business with the right agencies, pay the appropriate taxes, and comply with all laws, rules and regulations in the new business location.
Now, brace yourself for lots of hard work and cross your fingers for busy days ahead. Good luck!
We can help
Visit one of our branches or call us at 1-800-288-3425 to learn about how we can help get your new location up and running.