Opening more business locations means you're on the trek for expansion, growth, and increased success.
But before you think about setting up a new business location, make sure you have a dependable consumer base, capital inflow, steady returns, no debt, and effective marketing.
Only then should you invest money and time and direct resources to a new location. Here are 5 tips to keep in mind before you start.
1. The Fundamental Questions
There are some questions you should ask yourself before you set out to select a new business location.
Remember, the number of retail stores, warehouses, offices, and sites does not represent the success and efficacy of your business.
Still, opening a location while exercising due diligence can help you get your anticipated profits and mitigate the issues that arise in your expected operations.
But you should know that a new business premise will require its own set of investments and particulars. If, for example, your first location was a food cart and you're looking to procure a small restaurant, the cost of operations and rent are likely to spike exponentially. So evaluating these critical issues is essential before opening new locations.
The questions you should ask yourself before making the move include:
- Is your business location going to tackle existing space and logistical issues?
- Is your business location likely to target your consumers as effectively as the previous one?
- Will you upgrade your technology for your new location? For example, will you move onto an integrated EFTPOS solution such as Smartpay?
- What will be the cost of procuring, equipping, and managing the premises?
- Have you analysed staff, fixtures, and renovation requirements?
- Is the projected profit/revenue worth the cost of opening a new location?
2. Consider Alternatives
A standard error made by small business owners is expanding too fast. Opening new locations based on the performance of the old without solidifying your plans is a surefire route to stress and financial instability.
So instead of opening up a new location, it may be a good idea to consider alternatives, such as expanding your current premises to accommodate more of your needs. It is cheaper and reduces the high-risk investment of opening a new location.
You can also think about the merits of e-commerce stores and other virtual services such as courier and takeaway. These can help your business grow without requiring a spike in your financial commitments and other expenses such as rent and utilities.
But if you feel that the potential for increased revenue and growth is best tapped into by going for a second location, and your finances are all set up, then you should go ahead by all means.
3. Consider Both Customer And Workforce Demographics
These is among the most important tips you should have in mind before opening a second location.
Considering the proximity of your primary consumer base to your business is a must. If the second location is primarily for operations and would be largely operated online, you don’t need to vex yourself about consumers being present in the region.
However, demographics, such as proximity to other businesses for supplies and resources, are still important considerations.
Opening a second location in a consumer-dense area that is economically stable and has similar business costs as your primary location is the ideal scenario.
Next, you should also ask if your workforce is likely to be satisfied with the provisions of the area. If not, does the local population have the skills and talents needed to operate your new location?
Plus, you need a healthy amount of competition to keep your business growing and innovative. Healthy competition can allow you to tap into the surplus customer flow, but if the competition requires high advertising costs, you should look elsewhere for a business location. To learn more tips for doing your business visit these interesting statistics to learn more.
4. Get Hiring And Training
The best way to prepare for the initiation of a new business location is to ensure the staff is well-equipped for your needs.
Once the building is procured and equipped, you should start rolling out the team to begin operations. If it is a warehouse, you will need packers, loaders, truck drivers, accountants, etc.
For an office, you will need managers, call centre employees, and assistants. And for a retail store, you will need friendly, polite reception staff, attendants, and cashiers.
You are sure to have owed a lot of success achieved at your primary location to your team, so make sure that your business culture and teamwork are carried forward in your hiring for your new location.
5. Keep The Law In Mind
In procuring a new location, you must bear in mind the local legislation, your trademarks, copyrights, and patents for intellectual property.
Different localities have different restrictions, like curb extensions, signboards, parking restrictions, and much more.
Further, if you are opening a location in another state or city, ensure your operations are in line with taxation and business regulation laws from the get-go to avoid unexpected legal trouble.
Finally, if you’re going to be moving in order to set up your new business location, make sure to check our article on 9 Steps To Moving Out Of An Apartment.
Engage a Corporate Travel Organisation
As you will have staff moving, often with their families you should enlist the services of a Corporate Travel management organisation like Corporate Keys.
An organisation like Corporate Keys will be able to provide Short and Long Stay accommodation solutions, including sourcing a furnished apartment for a longer stay. Brands like The Hamptons Apartments and Manhattan Apartments will also be able to offer accommodation solutions within suburban areas.