By Evan Vitale
In our second part on this series of business expansion, we’re going to explore the different types of expansion you could vision for your business.
First, the obvious expansion is the one in which you expand your business into larger facilities or open another location in a different city, county or state. This is a common type of expansion when it comes to manufacturing; retail or restaurants, etc.
The second expansion – which we will discover in our blog post next week – is the one that involves expanding your current business by offering new products or services that don’t require physical growth or relocation.
Obviously, it’s pretty exciting to see your business grow and see a larger vision of owning and operating a larger single location for your company or opening another factory; shop; plant; office or retail establishment in a new location.
The No. 1 best way to start planning and considering business expansion is to create an expansion plan, which is similar to a business plan. There is plenty to consider when you want to move into this new phase of your business. Consider financial; staff; logistics; your management team, etc. How will you run a larger company? If you’re opening a new facility, how will you operate both at the same time? Do you have the capability to “let go” and let your team and staff work for you, or will you need to micro-manage? These are extremely important questions and you must have the right answers in making such an expansion. This is BIG!
Start with some of the basic questions:
– Where do you want to expand? Do you want to move into larger facilities and maintain one location or are you opening a second location in a new city or state? Where and why? Make sure you take your time and conduct proper research when choosing a new location.
– Are you going to purchase a new facility or lease? How will you obtain financing?
– How will you staff your expansion? Will some of your current team be willing to move to the new location? Will they work there for a little while until things are up and running smoothly?
Oh, this is just the start of it all!
As you can see, expanding your current business into a larger facility or opening a second location creates a lot of mind-blowing details. Be patient. Ask questions and get the best answers. Create and update your expansion plan and then find the best location for you; your team and your business.