Is It Time to Expand to Multiple Locations?

By Maria Valdez Haubrich

With commercial real estate rental rates still relatively low but the economy slowly starting to recover, now could be the perfect time to expand your small business into one or more additional locations. If you’re considering making this move, here are some tips to help.

1. Start small. You can make things easier by starting with just one additional location. If you will need to travel between the two offices or stores regularly, you’ll probably be better of choosing a location within a short driving distance. In fact, consider setting up shop in the same city as your first location—that way, not only will both sites be close enough for your convenience, but customers will already be familiar with what you offer, helping your business to grow.

2. Do your homework. If you’re determined to go beyond your current region (perhaps you’re looking for a site where the economy is already booming again?), start your search at City-Data.com. You can view information including population, age and family makeup, median household income, average home prices and more for any city that you search. Also visit the website of the city you’re considering—you’ll usually find demographic information and links to offices that can help you do additional research and get all your paperwork in order.

3. Look for perks. When choosing a location, consider how friendly the city is to small businesses and to your industry. Do they offer any tax breaks or economic development assistance? What programs does it have to help entrepreneurs?

4. Scope it out. Visit the city before making your decision and talk to entrepreneurs who are already in business there. Attending a Chamber of Commerce meeting is a good way to get a feel for the “vibe” of the city’s business community. Are they positive, enthusiastic and energetic, or are they negative and constantly complaining?

Also visit the sites you’re considering to observe things like traffic, parking availability and foot traffic. What kinds of businesses and customers are nearby? Is your business complementary to, or competitive with, nearby businesses?

5. Get “personnel.” Last, but not least, consider labor availability in the area. If you’re opening up shop far from your current location, are there enough job candidates in the new area who have the skills you need? Are average salaries or wages within your budget? Will you have to deal with any new regulations you didn’t experience in your current area?

Image by Flickr user Mr. Lujan (Creative Commons)

This entry was posted on Thursday, April 28th, 2011 at 6:00 am and is filed under Small Business, small business, Workforce. You can follow any responses to this entry through the RSS 2.0 feed.


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