When you find success in an ongoing business venture, you might be tempted to start a second one. It might be an effort on your part to capture new markets or clientele. However, you cannot take the impulse decision. You still have to put your best in the first one. Besides, you might not dedicate yourself to the already flourishing business while focusing on the new one.
Thus, have as much operating capital and staff expenses available. You have to rely on one of your trustworthy staff while you are away. It becomes more crucial when the second business is in another city or state. Moreover, you also need to see if you can replicate the same concept. Before you jump head-on, ensure to do the following.
Defined Goals
You should have clear goals in mind as to why you want to open a second location. Answer a few questions to yourself.
- Do you want to meet existing demands from your clients at their location physically?
- Or is it a completely new market that you are planning to enter?
You could also be thinking about expansion to show off your brand image. Then, the question arises, ‘if you will be able to fulfill the deliverables from a business?’ If you have clear answers to these, then it might be a good idea, after all. You have to put in capital, and your precious time, both.
Along with this, you must be having a plan. It is essential to have that ready, or if the product and market are the same, you can try the old formula.
Warehouse Management
The warehouse is integral to any business that deals with products and delivery aspects. The location of the warehouse is also essential. If you have one near your current location, then you might need to rethink your strategy. If you are opening the second business location in the same city, you might use the services of your existing warehouse. However, if you are starting one in a state away from your home location, you need to think about getting a local moving agency on board.
Customers at your new location might request something from your catalog. And it might be difficult for you to source it from your other warehouse. They can help you with your distribution and fulfillment needs. Store just about any product and forget about shipping hassles. You do not have to pool in more funds to set up another warehouse at the new location. Think about this before you tread further to quench your thirst for prestige and growth.
Competition Assessment
After you finalize your new location, you also need to know that you will have competitors. Old competitors at your old location can be a different deal altogether. New ones can be more competitive or less competitive. You have to visit the markets at the new location and find out about them. You need to conduct a SWOT analysis here.
Study the business in your genre that is there. If you know what they excel in and what they lag in, it will be easy. Make that ‘something’ your unique selling point. And, advertise that, to enter the new markets.
Right Recruitment
Just because you are starting location No.2, you cannot forget the first business. You have to travel back and forth and handle both. You need to look for a great manager who can foresee the entire operations. Recruiting admin personnel first will be a good choice. He should be able to handle all the facets of the business, be it procurement, customer interaction, or a little billing. Look for juniors or interns in several roles like HR, administration, finance, and customer services.
Finding a local recruit stands to be beneficial if you are unfamiliar with the new location. He might know the local customs and traditions of the locals. It will be a good idea to generate holiday sales, depending upon the sales seasons therein. You can also register with the local association to attend the business events there. It will help you interact with the markets.
Grand Launching
Once you are done with the above, think of a launch date. It is also an essential accompaniment to your marketing plan. You can start with a soft launch, where you arrange an event with suppliers and vendors there. You can also arrange a sale so that local customers can know about you.
Once they start finding out more about you, they might get interested in other offerings. One advantage of a second location is that customers from your first one can do some word-of-mouth promotion. One year of constant promotions can see you through.
Follow these strategies and make your second business a grand success. Good luck!
