Small Business

Expanding Your Business to a New Location

When a business is doing well, market saturation is sometimes the inevitable. As a result, owners often find themselves entering new territories to grow their business. While there are many factors to consider when entering and growing into a new territory, remember to spend time focusing on relationships to include employees, vendors, contracts, and customers.

EMPLOYEES: When entering into new territory, your current team will be important. Obviously, you will have to add additional staff but be prepared to temporarily, or in some cases, permanently take existing staff to help jumpstart the new location. This can be a challenge because you will need to determine who will go versus who will stay to ensure that the new and existing locations are both successful. Be prepared to offer incentives to those moving temporarily or permanently because some employees will be reluctant to move.

VENDORS: Talk to your vendors to determine who has the capability to continue to service you in the new location. More than likely, they will be happy to learn that they will be obtaining more business as this could grow their business too. This will save you time from having to build new relationships allowing you to focus on other factors. However, if your vendors are not in the new location, you will need to identify new vendors and identify the vendors with the best reputation to help you move your new location forward.

CONTRACTS: Another factor to consider is existing contracts that you have? This is your opportunity to learn how well you are meeting their needs and to ask for additional business in the new area. Be prepared to learn that most likely they already have someone in place. However, if the current service provider is not doing a good job, this could be your opportunity to move in and acquire the business. On the other hand, if the current service provider is doing a good job, you will at least want to find out about the next open bid period. Also, remember to ask if you can serve as a backup until a primary opportunity becomes available.

CUSTOMERS: Last but certainly not least, market research on prospective customers in the new location will be a key factor to consider. You will want to determine if there are enough prospects to make it worth your time, money, and resources. Also, be sure that you have something unique to offer that sets you apart from the competition. This could ensure longevity in the new market.

Obviously, there are many more factors to consider when expanding your business. However, your relationships could be one of the keys to your success. The bottom line is that the people who are already around you can play a major part in making your business successful. So, cultivate the existing relationships that you have and be prepared to reap the benefits of the seeds that you have sown.

NEED HELP WITH YOUR SMALL BUSINESS?

Contact Todd Carlisle with the UGA Small Business Development Center at (706) 569-2651 to schedule a complimentary consultation in our LaGrange office.