Expansion is a key element to long-term business success. Some professionals would even go so far as to say that if you’re not growing, you’re dying. However, scaling up a business presents its own set of challenges. Indeed, opening a second brick-and-mortar location is a big milestone in the life of a growing company. And how well a business leader manages this expansion can have long-term ramifications for their company. To that end, today we’ll list three key tips that professionals can use to ensure they’ll be able to expand with confidence. Check them out here.
- Determine Demand
Once a company reaches a certain level of stability, business leaders may feel tempted to open a new location ASAP. However, whether you run a restaurant, a department store, or a hammertoe surgery clinic, you shouldn’t start planning for a new location until you’re certain you have the demand to justify it. Plain and simple, many organizations try and scale up too quickly and too aggressively, only to find that their consumer base isn’t as widespread as they believed. Note, it’s a wise idea to conduct market research to determine if opening a second location is a viable option.
- Scout Your Area
Sometimes companies may be able to build a new location just a few miles from their original HQ. Large metropolitan areas may be able to support numerous B2C branches of the same business. On the other hand, some businesses may benefit from expanding into an entirely new market. Again, market research can provide key insights about what sort of customers your business attracts, and where you might be able to find them. That place, of course, could be a different city, state, or even a different country. So, don’t rule out this type of expansion until you have the information you need to make a sound decision.
- Communicate with Your Team
Opening a new business location will create numerous logistical issues. The good news is that it’s possible for a business to manage these effectively. To do so, leaders need to communicate with their employees and help them form a plan for staffing and running a second location. This will include hiring new personnel, forming communication strategies, and establishing new internal processes. Don’t let employee efficiency drop due to confusion about your plan! Instead, keep your team members up to date as much as possible.
Conclusion
Opening a second location is a huge moment in the life of a business leader. That’s why all professionals should take their time and make sure they have everything in place necessary to ensure a successful expansion. Thankfully, these tips will help you get started!
