Are you planning to open a new location? If so, you’ll have to identify possible challenges and opportunities before pushing through. A new branch requires resources, knowledge of the market, and understanding of your competitors. You must also determine if there is a demand for the products and services you have to offer in the new market you wish to enter. It’s important to know if it is the ideal time to open a new branch.
When should you open a new location?
Start with a Business Plan
Create a plan that tackles different aspects of your launch into a new location. Identify achievable goals when you enter the new market and a solid customer base that has a need for your products or services. Designate teams with expertise from customer research to product development to sales campaigns to customer retention. Identify potential problems you might encounter and provide solutions for them. Be as detailed as possible when drafting your plan. However, you should also be flexible when unforeseen circumstances arise.
Identify a Location
You need to consider several factors when choosing a location, you should look into:
- Review the rent and determine if it’s within your budget.
- Determine if the neighbourhood of your intended new location is safe, accessible, and has enough foot traffic.
- Make sure the size of the property fits the number of employees you plan to deploy there.
- Learn more about the landlord and determine if you can establish a good business relationship with them.
- Assess the competitors in the area and determine if your products or services have a competitive advantage.
The way you address these factors can affect the success or failure of your business in a new location.
Study the Market and Competitors
When you open a new location, you should learn more about your target market and direct competitors. Identify the demographics, needs, wants, and pain points of your potential customers. Doing so enables you to create a value proposition that resonates with them. This allows you to make a customised sales pitch that they will likely respond to. Know your competition to determine if your products or services have a competitive advantage. Identify possible gaps you can fill such as features their products lack, a pain point they missed, or a want they have yet to fulfil.
Stabilise Your Cash Flow
Your new location won’t be profitable immediately that’s why you need to manage your cash flow effectively. You have the option to subsidise your new branch using income derived from your current operations or get a loan. If you decide to get a loan, you can compare creditors and choose one that provides favourable payment terms.
Create Marketing Campaigns
Your intended or current customers need to know you have a new location. Create and launch campaigns informing them that your latest store or restaurant is opening soon and when it is finally open. This information campaign creates buzz around the launching and piques the interest of your target audience. They’ll also learn more about the products and services you offer.
These are the factors to consider when you decide to open a new location. If you need assistance with updating your books to meet the requirements of a new location, we at Robookkeeper can help you. We offer first-rate small business accounting services.
