Business expansion can mean a variety of different things - for instance, a company may be considering releasing a new product line, hiring a bevy of additional employees, targeting a new demographic or the most obvious, moving to a secondary location. Before any of these actions are carried out, however, the owner needs to think long and hard about whether or not this is truly the best thing for the business.
Many questions need to be posed before a leader can consider opening up a new storefront location, they need to ask themselves a few questions.
Is this financially responsible?
Obviously, the first thing that the leader needs to think about is if expansion is even feasible financially. Do the likely benefits outweigh the potential risks that might arise? If this turns out to be a failure, will the company as a whole still be able to function? If the answer isn't yes, the administrators should seriously consider scrapping the project.
That said, if, after consulting with accounting software to take a look at the business' expenses and revenues in real time, the firm is in the black, expanding might be a good idea. Nonetheless, reviewing such programs with a fine-toothed comb needs to be one of the first steps.
Are my employees reliable enough?
It goes without saying that whoever a business owner hires is someone he or she considers to be trustworthy enough to complete the job. But the leader needs to think about whether he or she has someone that would be trusted to run a second location, because he or she can't be in two places at once.
This also calls up another question, according to Entrepreneur Magazine - is there anyone that the firm owner can afford to move away from their current position? Even if one employee in particular would be a great fit at the other location, if they are crucial to the company where they are, this might not be a feasible move.
What's the situation with competition?
Even if the company is currently very popular in its location, that doesn't mean this will bring immediate success if they move. The business owner will have to survey the new area for potential competitors to make sure they don't have a lock on the market that will be hard to break. On the other hand, having numerous similar businesses within parameters might mean the new firm will be lost among the sea of choices, which can be just as damaging and fruitless.
Entrepreneur recommended spending time casing the area to make sure the company would be able to assert itself with little to no problem.