One of the ways to grow a business is simply to move it into another location. Physically expanding the business is a good option if the data supports such a move. In other words, you do need to research and plan such a move. Hiring an advisor to do this can be an important decision as part of your growth strategy. The key is to ensure that the new location expansion can be just as profitable as or more so than your current location. Here are some business tips to keep in mind while expanding to a new location are:
- Ensure your business has a long-term success story. In other words, one or two years of good growth in one location does not mean you can replicate that in another area easily.
- Look at trends within the local community that influence your business’s success. Are these present in the area you plan to expand into?
- Does the new location have the same economic conditions to support your business? Specifically, what is the competition like? Is there at least the same level of customer base in that location?
- Work to draft a new business plan for the new location, even before you consider opening it. This will include market research which is critical to understanding the potential success of the location.
- Be sure you have the management and supportive team members to open such a location. You will need to train new people to take the place of other employees moving to a new location.
This is one of the more labor intensive methods to building growth within a business. When the pieces do come together, though, it can also be one of the most profitable options available to you.
Other Option – Franchise It
If you do not want to take on a secondary location yourself, you may want to consider the advantages of franchising your business instead. This method allows the business to grow with your same passion and focus but it allows the staff on hand at each location to have personal ownership in the success of that establishment. You are not trying to divide yourself between two locations, but you still have the same owner-focused attitude occurring in the business. You do not have to work with a national franchise brokerage firm to franchise. Smaller companies, and local affiliates, may be available to help you with the legalities of this move.
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