Business is slow, but stable. In fact, you’re already looking ahead to long-term growth. Despite the down market, in fact, because of the down market, now is a strategic time to open a second business. According to Unchartered Waters, Setting Sail for a Second Location Can Be a Great Way to Grow a Business, employees will be easier to find, property will be cheaper, and marketing costs will be down.

The key is to keep realistic expectations and stay on budget. This way, even if you open a second business in a location that’s hard hit, you can look ahead toward promising future prospects. Think about it. If you can succeed in these conditions, you’ll be in a great position once business picks up.

There are several reasons why starting up in a struggling economy is easier than doing so when the economy is booming. Here’s food for thought.

It’s a Good Time to Build Relationships

High-quality trade contractors are looking for work. You can build relationships now with the best and the brightest, who might have been harder to find before. In fact, having quality employees throughout your business structure is critical to both your second business succeeding and your first remaining secure. A good question to ask is whether you have enough trained, qualified employees to keep both businesses running. After all, you can’t be in both places at once.

One way to staff the new business is to hire from within. This will guarantee that your employees stay within your company’s framework. Acquiring an existing company is another option, and you’ll likely have the option of hiring previous employees to come on board. Some owners would rather buy an existing business because it comes with the benefits of an existing clientele and showroom.

You’ve Maximized Growth Possibilities at Your First Location

If a company wants to grow, expansion is sometimes necessary. Now that your company is meeting goals in one market, it can expand by supplying goods or services to another.

Perhaps you want your first business to work across a larger geographical region. One obstacle to succeeding across a long reach is that people like doing business with local companies. A new business will help you meet that demand.

Before you Pack, Do Your Research

As you look into potential areas for expansion, don’t forget to do your homework. Does demand exist for what you do, and at the price you want? Look into real estate values in the area, the age of homes, and the type of construction that thrives there. For instance, a high-end construction company may look to move in an area where homes are priced in the $1 million range. Also, how much does your competition charge in this market? Will you be competitive? All of these factors will play a large role in a successful expansion. Money is obviously the common denominator, so make sure you have enough. Your second business should have the capacity to run on its own, without relying on the first location to pay for it.

Tags: business, Contractor Marketing, economy

This entry was posted on Tuesday, July 22nd, 2008 at 3:47 pm and is filed under Contractor Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.