Case 2: MARIAN'S ORGANIZATION: A CHAOTIC ONE
If I was Ms. Rivero, here are the things I would consider before putting up a new
branch.
1. Make sure to have a straightforward set of goals in place. Before moving
into a new region, as in other major business endeavors, it is critical to have
specific goals in place. Is the primary aim of expansion to meet current
consumer demand or to enter a new market?
2. Do research the optimum location. One of the first considerations for any
entrepreneur looking to grow his or her company is the best location for their
second branch. If I want to open a shop or store that will depend on a large
number of customers, I have to make sure it is located in a high-traffic area. If
there aren't a lot of people passing by the new place on a daily basis, I'll have to
put in a lot of extra time with the ads to ensure that people know about my
business. Aside from that, it's also a good idea to be in a place that has good
public transportation and isn't too close to my rivals.
3. Recreate previous success. One of the most common mistakes that
entrepreneurs make when growing beyond their initial location is failing to
measure and reproduce the processes that made the company successful in the
first place. Documenting the business processes thoroughly makes them easier
to duplicate and transfer to new workers in a new office location.
4. Determine the cash flow. Determine a reasonable time period for the second
location to produce revenue sufficient to finance operations without additional
expenditure based on data-driven forecasts. Is there enough cash on hand to
finance the second location's operations before it becomes self-sufficient?
5. Increase the recruiting activities. There's a fair chance I'll need to recruit
some new employees to staff this second branch site. If this is the case, it is
important to begin the recruiting process as soon as possible so that I have
enough new hires ready to begin on launch day. I will need to provide some
instruction to these new hires as well. This is particularly true if they have
never served in a customer-facing role before. All of this preparation must be
done prior to the opening of the new store to ensure that everyone on your new
team is comfortable with their positions.
6. Don't be silent on social media. I'll want to get all of my loyal customers
pumped up about the possibility of a new branch opening. As a result, I should
not be silent about expanding the business; otherwise, very few people would be
aware of it. The best way to ensure that your big launch reaches as many
people as possible as soon as possible is to be very vocal about it on social
media. If I've decided on a launch date, I have to make sure to tweet and
Facebook about it as soon as possible. Then I can be certain that the major
opening day will be a very well-attended affair.
7. Maintain concentration. Opening a second location presents many of the
same obstacles as starting a new company. This can be a welcome and diverting
obstacle for many entrepreneurs. It is crucial, however, not to lose sight of the
enterprise's overall well-being. When expanding a company, entrepreneurs risk
spreading themselves too thin if the proper processes and people are not in
place. In reality, opening a second location could be too soon to increase the
risks associated with overexpansion. So, proceed with caution: even at this
early stage, those perils may pose a danger.
8. Maintain the culture. There are several ways to ensure that a company's
culture is maintained across various locations. Often, a founder, partner, or
long-term trusted employee will choose to move and lead the new office. If this
is a choice, it will almost certainly help to keep a cohesive culture. Daily video
conferences using Zoom or a similar method may also promote teamwork and
community. Try hosting a business retreat at least once a year to get the team
members together in person.
9. Understand the business. Conduct rigorous research to determine if there is
enough demand for our product or service, and adapt our strategy to the
particular characteristics of the new market.
10.Remember compliance checks. If the second location is in a new area, state,
or even a new country, we have to be certain that I can legally offer my product
or service and that it complies with the jurisdiction's local regulations.
Additionally, ensure that the new location complies with any taxes and legal
business arrangement regulations.
Expansion can be one of the most effective ways to stimulate development. It is also
inherently dangerous. By taking all of the above into account, you will increase the
likelihood of your second location's success.
References:
Freedman, M. (2020, November 30). Time to Expand? Tips for Opening Another
Location. Retrieved from: https://www.business.com/articles/tips-for-opening-
another-location/
Tycoonstory. (2020, November 21). Advantages and disadvantages of opening a new
branch office. Retrieved from: https://www.tycoonstory.com/starting-a-
business/advantages-and-disadvantages-of-opening-a-new-branch-office/
Nicasio, F. (2020, October 20). Opening a New Retail Location? Here’s How to Drive
Word of Mouth and Traffic. Vend. Retrieved from:
https://www.vendhq.com/blog/opening-new-retail-location-heres-drive-word-mouth-
traffic/
