Opening a new business location is an exciting venture. It also comes with inherent risks. A new site can increase profits and brand exposure, but it also opens up possibilities for failure. Rushing into expansion and opening a new location can do more harm than good if proper preparations are not made. Increase your chances of success by following these simple steps first:
Do Your Research
Deciding where to open a new location for your business should go beyond finding an affordable lease or the new hot retail spot. Just because your business is successful at its current location doesn’t mean it will retain its viability in a new one. Find a location where your product or service is needed but where you won’t face stiff competition. A nearby competitor shouldn’t be a deal-breaker, but it should get you thinking about how you can convince potential customers or clients to choose you over them.
Test the Waters
If you can, test out your product or service in the area you are considering for a new location. Think mobile, low-investment ventures such as food trucks or kiosks. These can both increase your brand’s exposure in the new area and give you a chance to test the public’s response to your company. If the public responds positively to your business, it may be time to set up shop. But if you didn’t get the response you’d hoped for, solicit customer feedback to learn more, and carefully consider other locations.
Put the Word Out
Opening a new location doesn’t guarantee immediate success. The key to a successful opening is to create a marketing strategy that will alert potential customers to your new location. Foot traffic is great, but it can only do so much, so don’t rely on it to ensure success. Work with a marketing specialist to maximize your exposure at your new location. It takes time to build a neighborhood reputation, even if you have another successful location. Expect to invest in marketing while your new site is getting established.
A new location for your business can be a profitable venture if you are strategic and prepare well. Following these steps can reduce your risk of costly mistakes and free up your time and creative energy to can hit the ground running toward great success.
If you are ready to open a new business location, start by sitting down with a Family Business Lawyer®. As your Family Business Lawyer®, I will guide you in making the difficult decisions you face every day as a leader in business, including when and where to open a new location. We look out for your business’s legal and financial future so you have time and energy to focus on growth and expansion.