The truth is that it is a risk to expand your current successful business. The cash flow being impacted at the original business location could impact performance. The new location could also impact the brand’s reputation negatively. Finally, the new location could be a complete failure if you do not do market research and thoroughly consider this important decision. A decent idea is to make your current business as profitable as possible then expand while adopting this model. You can use employees willing to relocate to help maintain the values at your new location.
Training New Hires
The tough aspect of opening another location in a niche like digital marketing or advertising is that the talent pool might not be huge. The best thing that can be done is to compensate current employees to move. Single employees looking for a change that want a consistent income in a new city are perfect candidates for this. Reporting back from a new location is easier than ever with project management systems and instant communication via email, text, and video. The need for in-house marketers is going to be low as the marketing plan will be similar across all locations.
Rental Fees For a New Office
There are plenty of companies that do not have many people working in the office currently. Some of these companies will continue to allow employees to work remotely while others will have a percentage return to the workplace. You do not have to rent a giant office as you can allow a certain number of employees to work from home. Virtual offices are also popular for companies that have employees in the area but no actual office. This allows a business to meet with important clients in a professional setting rather than in a person’s home office.
Upgrades in Security
The cash flow that is going to be used to open the new location and fund expansion needs to be conservative. The last thing you want happening is some kind of burglary that impacts the opening of a new location and costs the company money. You might have insurance for certain items but technology does depreciate in value and there will be days of lost productivity. Commercial glass repair and replacement companies can help install security glass which truly provides peace of mind to a small business owner.
Overall Operation Costs
Running a larger business will come with higher fixed costs. Lowering these costs is important where possible as cash flow can be used in case of an emergency. Set levels of success for the new expansion before allocating certain amounts of budget to it. The last thing you want is to pour all of the money into a new location leaving the other location struggling. It is important to remember how success was generated before the expansion and stick to those values.
Costs need to be controlled during a company expansion. The last thing anyone wants is a failure to ultimately be the demise of the original successful company.