When is the right time to expand your business to other locations? What are the things or factors to consider? These are important questions and points of concern for many entrepreneurs out there. Of course, every business aims at growing and expanding its operations as this comes with many benefits and advantages.
Some of the advantages of expanding your business to new locations include increased brand exposure, more sales and more revenue and profits. The success of your expansion will depend on several factors. It’s very important for every business that intends to open more locations to prepare well so as to avoid mistakes. Here are essential steps to guide you when opening more locations for your business.
Why do you think you should Expand?
Your starting point should be answering the question: why? There should be a clear reason as to why you’re planning to expand to other locations. That means you’ll need to come up with clear goals which will help you stay focused and motivated. Note that the transition can be quite challenging hence the need to know what you want regarding business goals.
The first thing to do is to do your research. The fact that your business seems successful in its current location doesn’t necessarily mean you’ll succeed in other areas. Research, in this case, involves finding out more about the market in those areas. Is there an actual need for your service or product item? What competition will you face in the specific areas you’re targeting? If there’s competition, you need to come up with strategies on how to win clients.
How do you Plan to Maintain the Customer Experience?
You’ve been doing well at your current location, and everything has been working out well. The customer experience has largely contributed to your business success. Once you’ve researched the other locations, don’t forget to duplicate the same client experience at the new locations. Of course, this should be done in line with the unique needs of your target market. You may need to oversee the new sites until when you’re sure the desired customer experience has been achieved.
Do you have the right People in Place?
Many businesses move to new locations without the right staff positions in place. It’s not just about hiring managers for the new businesses but getting other staff positions, from the sales and marketing teams to those responsible for cleaning. Use the same proven workplace culture and systems to train and equip the new staff members on how to run the business in those new locations. Don’t forget you’re responsible for overseeing and providing leadership. Have the right people in place before making a move.
You should probably test the market in those new locations before fully committing to open them. It’s important that you see the response and reaction of the customers in those specific areas before opening your business fully there. This is referred to as testing. The feedback you get will help you plan and strategize well as you enter into that market.