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How to Expand Your Business Into a New Territory

How to Expand Your Business Into a New TerritoryThere’s more than one way to grow a business. If you’ve exhausted the growth possibilities in your current area, then the next phase of your business may be to expand into a new territory.

While this can involve a lot of work (usually as much work as initially opening your business), if done correctly it can help to significantly increase revenue.

Additionally, it can serve as a blueprint for expanding into even more areas in the future.

No worries –  I’m here to help support you in learning how to expand your business into a new territory

As you might know, I am a bestselling entrepreneur with about 2 million books and courses sold globally.

Plus I’m well known for my bestselling program to help people make money online – called Make Profitable Courses Without The Overwhelm.

I love sharing insights and strategies to empower people to grow their business.

9 Tips To Expand Your Business Into a New Territory

In this post, we’ll look at some handy tips to keep in mind when you’re looking to venture into new business lands. 

1. Understand Your Motivation 

First of all, if you want to expand your business into a new territory take time to consider your motivation for expansion. As we said above, opening in a new territory can involve a significant amount of work, and it’s not for the faint of heart. You’ll need to have a good reason for doing so.

All too often, business owners get carried away by the success of their primary location and make grand plans to take on the world. It doesn’t always work that way! Look at this expansion through the lens of a new enterprise, figure out what you’ll be bringing to the table, and then decide whether it’s worth it. 

2. Dive into Market Research

There’ll likely be some overlap between the customers in your existing area and the potential customers in your proposed new location. But there’ll be differences, too — and you’ll need to know what they are before you get too far into the planning process. Also, keep in mind that there are likely to be different competitors in the new area you’re looking at. Do you offer enough to grab market share from them?

You should approach your market research with the same intensity and depth as you did when you first opened your business. Don’t assume that everything will be the same in the new area. It won’t be!

3. Understand Consumer Behavior

It doesn’t matter whether you’re opening in a new town in your state, a new state, or a new country: there will be specific consumer traits that are localized to that area. In order to succeed at expanding your business into a new territory, you’ll need to know what they are. Some businesses that were successful in one area failed miserably in another, all because they overlooked a local consumer trait. 

You can get these insights by spending time in the area — and being a customer yourself — and getting advice from local experts.

4. Test the Waters

This won’t be applicable to all businesses, but if it is, then it can greatly increase your chances of success. If there’s a way to test the waters, then do it. For instance, you may enter a new market by making your goods available to purchase online or hosting a pop-up shop. Both of these options are relatively easy to do, and won’t cost that much money. Plus, they can help to validate the strength of the idea and thereby help you to feel more confident in your business. If you host a successful pop-up, then you may have the foundations of long-term success in the area. 

5. Get a Local Look and Feel

In some cases, having an exotic look and feel can help attract customers. But that’s only really the case if it’s part of the overall brand (for example: a Texas BBQ chain). In most cases, businesses will need to match their branding and offerings to the local market. This can be difficult at the beginning when you don’t have a foothold in the area and perhaps don’t have the local knowledge, but there are things you can do to get started. For instance, you can get a local phone number for your business via a virtual phone system; after all, a person in Arizona trusts Arizona phone numbers more than they would a New York phone number. You can also look at existing local businesses to see how they present themselves. For instance, if they all have a muted, non-showy decor, then you’ll know that your premises should follow that style. 

6. Put Together a Team 

You’ll need to adapt your business to be successful in a new territory, but it should still very much be your brand. As such, it’s recommended that you put together a team of experienced employees to lead the opening. They’ll be able to ensure that the new site is fully in line with the ethos of the brand as a whole. 

Once the business is up and running, local and new employees can take over the running of the site. But try to recruit experienced employees to play a hands-on role during development and opening. 

7. Consider Financing 

You’ll need start-up capital to open your new site. How much will depend on the nature of your business, but you’ll certainly need at least some. It’s generally best to use financing to expand your operations even if you have cash to hand. If you use your existing capital, you may run the risk of depleting your cash reserves and negatively impacting cash flow. It’s more logical to get a line of credit with a lender and use that to fund your expansion. Remember that they’ll want to see a robust business plan, but it should be easier to get if you can prove that your first venture has been a success. 

8. Don’t Lose Sight of Current Operations

It can be exciting to open up a new site in a new territory. However, don’t forget that there’s still the matter of your current operations include your current online business. First and foremost, you should ensure that you maintain your high standards. It’s already proven to be a success — if you take your eye off the ball, then it may begin to falter, and then you’ll have the busy task of trying to make two sites work. 

9. Stay Patient 

Finally, remember to be patient. Your first location may have been an instant, runaway success. The second site might not be like that. It might take many months before it’s profitable. Stick to the plan, and don’t be worried if things move slowly — if you’ve planned it right, success will come. 

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