Business expansions are inevitable for businesses that have successfully grown beyond their set goals. This means that they are now ready for yet another set of obstacles, challenges, and opportunities. Business expansions can be done in several ways, and these include the following:
- Franchising the business to other entrepreneurs
- Acquisition of another existing business
- Establishing business agreements with dealerships or distributors
- Pursuing other marketing campaigns
- Allowing employees to own stocks of the company
- Public stocks offering
- Joining industry organisations to achieve savings in particular areas of operation, such as purchasing and marketing
- Allowing other parties to use the company’s intellectual property for the benefit of the business
- Opening branch offices in another part of the country or other countries
None of these options should be pursued unless an honest assessment of the company’s strengths and weaknesses has been done and unless necessary groundwork has been carefully planned. The company also has to identify its key target market and the type of market opportunities that it wants to capture with the expansion. Once the right processes and structures have been identified and careful planning has been done, expansion activities may be started.
If the manner of expansion used includes the opening of new branches in other areas, be it local or international, the venture may likely require the acquisition of a new piece of land, building, and other properties. Here, we will discuss how to best choose the right part of the land for business expansion purposes.
Things to Consider When Choosing the Perfect Location for the Business
Too many entrepreneurs or small business owners get caught up in their excitement of expanding their business. Consequently, they fail to invest the right amount of research in finding the right location for their venture. Since location plays a vital part in the success of the expansion project, it is crucial to pay attention to the varied choices of where the new branch can set up shop. Below are some things to consider when choosing the perfect location for the new business venture:
- The business and its needs. Understanding the type of business that needs to be set up is essential. Does it require customers to call for appointments, or does it cater only to walk-ins? Does the company involve using or producing chemicals that may be harmful to human health, animals, and the environment? Will the business require to ship items to customers? There are various properties for sale in community listings that can be used to construct new offices or buildings. Still, it is vital to consider the needs of the business first before deciding on a particular parcel of land. Depending on the type of business, local zoning restrictions may also apply.
- The customers. What type of customers are targeted by the business in particular? Especially if moving the business operations into another city or in another country, it will be beneficial to find out about the population trends of the area and the profile demographics of the customers.
- The community. Researching about the neighbourhood or making a feasibility study of the area is essential for the success of the expansion project. See what types of businesses do well in that community. Investigate crime rates and other obstacles that other companies experienced there before you set up shop.
- The competition. Know if there is fierce competition for the same business models in the area. Some businesses are not affected by the presence of many other competitors in the same neighbourhood, but it can spell success or failure for them for some. Performing a competitive analysis is essential to see how the business may gain a competitive edge if there is stiff competition within the vicinity.
- If the business requires customers to physically go to the shop or office, it will be essential to consider if it will be easier for them to find the company. Accessibility is vital for businesses with walk-in customers. If customers are to drive to the location, there should be ample parking space, and the area should be easily accessible from the road.
It is also imperative to consider other factors that may contribute to the success or failure of the business expansion project. Even if the price of the site is attractive, if customers will find it hard to get there or if the infrastructure does not allow essential utilities like the Internet and electricity to be installed, the business might not last for long. Knowing these factors can help you decide if expanding is the right path for your business.