Are you thinking about expanding your business? If so, it isn’t an easy decision and the final decision is one that is based on pure business logic. Plenty of forethought and research needs to go into the idea of expanding before you go forward with it, especially in this market. Since we’re all about making it in business here on Blair Stover, we’ve compiled a list of things to consider before expanding your business.
1. Make the decision on whether your business can survive after duplication. You cannot be in two places at once, so can the second site run without you? If your customers will not insist on doing business with only you, then you are good to go.
2. What is the current strength of your business? Is the current location doing well enough now to warrant another location opening up? Why is it doing so well and can these things be duplicated at the new spot? Will you have a new target market? All of these questions have to be answered before you move forward.
3. Get ready to perform market research. Focus on new target markets which means that you need to measure on the strength of any existing demand along with any competition. Look into advertising costs as well as budgeting issues.
4. Be sure that you have the funding necessary. This included loans, investors and even your own capital. Remember that you have to consider your new location a brand new business venture.
5. Are there any growth alternatives? Is there a chance you can build a website instead of taking on a second location? Websites are easier to take care of and less expensive. You have potentially more customers and it functions as your business’ new way to deliver services or products to existing markets.