Are You Ready to Expand Your Business?
As a small business owner and entrepreneur, you might be asking yourself, when is the right time to expand your business?
If you have a successfully operating small business and thinking to expand, we are only glad to support you. Shop a Small Business is expanding as well providing a platform for women entrepreneurs from multiple states and cities. However, expanding your business is exciting but also extremely difficult. You must perform your due diligence before taking the leap.
Where to begin?
Essentially, opening a second location for your business requires the same amount of planning that you did when you first started.
You will have a lot to weigh when you ask yourself, Should I expand my small business? Some important considerations include:
The demographics of your proposed business - understand whether the customers in your target market differ from your existing customers. You also need to know how your direct competitors are doing in the proposed market.
How much foot traffic will enter your business- does the area you are considering allows you to expand your customer base. You may need to upgrade your marketing plan to capture the attention of your new target audience.
Research your proposed location - is it accessible in terms of parking, ease of access, and visibility.
Obtaining legal documentation for opening a new location. Even opening your new store in the next town requires you to navigate a minefield of regulatory requirements. You need to know the zoning laws, licensing requirements, and permitting requirements of your new location. Additionally, you must comply with state and federal laws.
Have a tax plan. Check whether the state and local government will offer you tax incentives to open a business. And definitely research taxation obligations if you consider opening a new location in a different state.
The Small Business Administration (SBA) recommends that you create a business plan for every new location.
Carefully examining these issues will help you determine where you should expand your business. Too many entrepreneurs rush to judgment and pick the wrong location for their business, or the wrong time for expanding.