Expanding Your Business
Making the decision to run your own business isn’t for the faint of heart. That is why often times when a business owner finds success with their business they will quickly look into ways to expand. For some this could mean branching out from a large partnership, but for many small business owners it could mean opening a new location. What many do not always know is that with expansion comes A LOT more work, that you may not have accounted for. There are no written rules that state when a business is “ready” to expand into a new location. For many business owners, just like deciding to open a business, it will be a leap of faith. Today we want to discuss some points that may help you determine if you and you’re business are ready to expand into a second location.
For many business owners, just like deciding to open a business, it will be a leap of faith.
First you need to decide if the type of business you are operating is capable of being duplicated? This would mean that if you were to clone your current business it would be able to function and operate on its own. This is probably the most important component to determine if you and your business are ready to take on more. If your current business relies heavily upon the assistance of the owner, it will be almost impossible to start a second, and give both the time and attention they need.
Another important step in your businesses journey to expansion is to really understand your current business model. It is one thing to see that you are driving a lot of traffic into your store and executing a lot of sales but none of that matters if the business is not profiting. If the business is seeing profitability will you be able to take the current strategies acquired and translate them onto the new business? Small things such as the location of your new business can play a key factor in the success of it.
Lastly, if you really are itching to get into something new, think of alternative ways to expand before jumping right into a new physical location. Do you sell a product? Try building a website and offering your product through e-commerce sales. This is a fairly safe way to see your business continue to grow. This is also a great way to do some market research on your product. Offering the ability to purchase through online sales will let you know what geographical locations are most interested in what you’re selling. This information can serve as a useful tool in the event you still want to open a second location!
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.