Is now the right time to expand the business?

I don’t want to pass up the opportunity to share an article I read about the right time to expand the business. Here are a few highlights:

If revenue streams are increasing at your flagship location, then your business may be ripe for an expansion. But just because business is booming doesn’t mean you should make assumptions about your potential to succeed in a new market (locally or globally).

1. IS YOUR TEAM READY?

The number one thing is team readiness. You can’t replicate yourself. Therefore, ask yourself, do you have a strong team around you who are aligned with your values, drive and motivations and can also be trusted?

2. WHAT ARE THE RISKS OR OBSTACLES?

Conduct a premortem analysis, and include skeptics in your discussions to factor in some cold and harsh truths. Whether you’re considering opening a second or third location to meet customer demand, penetrate a new market, or simply capitalise on opportunities that presented themselves, first assume the worst has happened. Then, work backward. The right time is when you’ve cleared all risks and obstacles.

3. IS YOUR WORKFLOW PROCESS RUNNING SMOOTHLY?

When you are absolutely sure you have nailed it once and when every part of that process is all set and running smoothly, then you may be ready to expand. You’ll also need to make sure that you have a team in place that can crisis-respond to every situation without you or with your minimal involvement. It’s the right time to move on to the second location when everything works?so?well that it’s even a bit boring. And the same goes for every consecutive one.

4. DOES THE NEW LOCATION MAKE BUSINESS SENSE?

For those of us who work in professional services, the key to new locations is based on being closer to customers, key vendors, or employee epicenters. Taking on additional overhead should be a strategic decision that is very clearly driving revenue, decreasing expenses, or providing a competitive advantage or differentiator. Additional locations and nice offices are a badge of honor and should make business sense.

5. IS IT POSSIBLE TO OFFER A HYBRID-REMOTE SOLUTION?

When geo-targeting is needed for a particular market segment, it’s time to consider opening new locations. However, we noticed office consolidations and downshifting during the COVID-19 pandemic in the service and consulting industries due to increased hybrid work and work-from-home arrangements. As a result, companies are more efficient in serving clients remotely than they were in previous years.

6. ARE ANY EMPLOYEES IN THE TARGETED AREA?

A healthy mixture between your target audience and employees will dictate the need for a new location for your business. In this distribution era, you can find out you already have five to 10 employees working remotely from a certain country. If you also have new business to find around the same area, a new office is a must.

Want to know more? Head on over to the full article here for more ideas and perspective. Afterwards, why not drop me an email to share your thoughts at [email protected]; or call me on 0467 749 378.

Thanks,

Robert