By expanding your business to a new location, you are effectively broadening your market reach. Bu like all business decisions, it does come with potential nightmares, in the form of a lot of pressures, stress and anxiety, especially when you think of the logistical nightmares it entails.
[related|post]To help you put your expansion plans on the right footing, we asked business consultant Oliver Junio of Terrabit Consultants to share some tips on how to grow your business safely and smoothly.
START DELEGATING As you ramp up your expansion to another area, there is a tendency to lose focus and overlook your original business.To prevent this, Junio says you need to appoint someone who will manage your business while you are away.
"Having a good business structure means you must have someone trustworthy, qualified and disciplined enough to maintain your business even with minimal supervision," he said.
DO YOUR RESEARCH Studying the different factors that may affect your business include political, economic, social, historical, environmental and demographical conditions. Junio says a critical component of this would be market research to establish if there is demand for your product or service.
"It would be best to locate your business in an area where there is a good level of demand for your products and services and is a market with customers who will be able to avail of your products or services," he said.
STICK TO A BUDGET Look at your books and see how much money you can spend or need to secure in order to expand. Include in your research whether it is feasible to move into a new location, and check if your cash flow is up to the task. Junio says to always include expansion and contingency costs on your budget in order to avoid problems later on.