Opening a new location for your business can be overwhelming, from finding a perfect spot and getting new local customers to finding space in the competitive market, to mention a few. But it's also an exciting opportunity to grow your service business and reach a broader client base.
To make your transition as smooth as possible, we've outlined the top 5 steps you need to take when opening your new location as a service business.
1. Figure out your finances
Before you take the plunge and open a new location, it's important to make sure your business can financially sustain the costs associated with expanding. This means having a strong cash flow to cover the additional expenses related to opening a new location, such as rent, utilities, inventory, and marketing.
It’s also important to consider whether you'll need a loan to help with the costs of opening the new business. If so, be sure to shop around for the best rates and terms before signing on the dotted line.
2. Research your new area
Market research is crucial for service businesses looking to expand their services into a new location. Here, you'll need to figure out if the local market is suitable for SME growth and whether there are already too many competitors in the area.
This research can include studying the demographics of the area, looking at the spending habits of potential customers, and checking out the competition.
If your research indicates that your chosen area isn't a good fit for your business, you should consider finding a new location.
3. Optimise your current processes & replicate them
One of the most important aspects of opening a new location that contributes to local business growth is replicating the processes and procedures that have made your current locations successful. This means taking a closer look at what's working well and documenting it in the form of standard operating procedures (SOPs).
Once you have your SOPs in place, the next thing is to implement them in your new location. However, keep in mind that you may need to make some adjustments based on the findings of your market research.
4. Find good staff and train them
One of the keys to success when opening a new location is finding good staff and training them well. If you're expanding into an unfamiliar area, it can be helpful to find a local who knows the lay of the land and can help you connect with the community.
When training your new staff, consider having your existing employees shadow them for a week or so. This will help them get up to speed quickly and ensure that they're following your SOPs correctly.
5. Prepare a marketing campaign around your launch
As you get closer to opening your new location, it's time to start thinking about your marketing campaign. If you've been successful in promoting your existing locations, then you'll want to use similar methods to market your new one unless you need some changes based on the competitors' marketing techniques.
One way to generate buzz around your opening is to offer discounts or special deals. This will help bring in customers and get them excited about your new business.
No matter how experienced you are in the service business, expanding your services to a new location always comes with its fair share of challenges. However, by following these tips, you can increase your chances of success and make the process as smooth as possible.
To learn more about how to grow your local business faster, get in touch with us and experience the magical transformation!