Hey you’re business is booming, you might want to start thinking about expanding to touch new markets in new locations. It may sound simple but opening a second location for your business needs a lot of planning and preparation. Just like how you started.
If you are absolutely determined to take up this endeavour, you might have to be mindful of these tips in opening a second location for your business:
Determine The Current Status of your Business
First things first, know where your business is in the success ladder. This will make you convinced on whether it’s time to expand and get a second office. Consider if your business is in a good place. This means strong sales, a high influx of customers for the other location and also solid cash flow.
If the main location is running out inventory, space or staff – and possibly turning away potential customers who are willing to pay big – then it will be the right time to consider a second location that will greatly benefit you.
More important, determine whether the first business can still be sustained when you will already be pouring resources to your second location. It’s inappropriate to always think that it’s always doing well, your business should also be in a stable position.
Always have an Extra Cash on Hand
Now that you’re assured that your first location is doing well, have you scaled out the extra expenses you incurred in opening a second location?
Always bear in mind that no one’s going to fund your expenses but yourself, so make sure that you can handle the cost that won’t make any business returns, for the time being.
You might opt for a business loan if you don’t have enough financial backings but as long as you have a firm business plan and strong financials, you are guaranteed a solid return to your investments in due time.
Conduct a Research of your Market
Research is the best preparation. Determine whether your ideal second location will put you in a tight competition or the demand for your services are low, this also puts a major risk for your plans.
Always conduct research. You can have ocular inspection or visitation of the area; identify local business owners and regular customers; and be knowledgeable of the competition. You should also check out what people are usually buying – and what they missed.
Consider the distance of your location. Some office space for rent in Philippines are conveniently located and accessibility is hassle-free with public transportation regularly available.
Lastly, your new location should also echo any distinctness in the neighbourhood. Some of the Office Space Philippines are located in a rather classier part of town while some are located in contemporary places so it’s best to adjust your offerings or dress codes to blend in with the new environment.
Keep Both Financials Separate
It’s also helpful to separate the financials of both locations. In this way, it’ll be easier to monitor the profits and deficiencies of each spot freely to measure what’s working or what’s not.
With this strategy, you can also separate the burden of paying for the expenses of both location and effectively manage the budget for each of them.
Opening up a second location is exciting. You’re developing your business in a big way. By planning everything out and acting carefully, you’re assured that the second location will be a success.