When your shop or restaurant is getting busier and more interested, you will definitely be interested in opening a business branch. Especially if many customers from other regions expressed their hope to be able to access your products in a closer area.
This step may be the right thing to do. However, it can also make the business lose control and fail.
Know the Market Needs Before Opening a New Branch
There are many factors you need to consider before opening a new branch. Make sure your data is complete and valid, not just the opinion of one or two people.
Not only reaching customers who are outside the region, there are many other reasons to open a business branch. You’ll also need to consider some of your objective hypotheses, such as:- Reach customers more broadly in other regions- Unlock new markets- For ease of distribution and logistics- Strengthen the brand- Due to the old location complicates business development
What is your main reason? Is this reason strong enough to be the basis for opening a new branch?
Things to Pay Attention to When Opening a New Branch
In addition to strong reasons, you also need careful planning. To help you see what variables are important to pay attention to when opening a new branch, here’s a list of 7 things to prepare:
1. Make a Careful Business Plan
The business plan that is made must be detailed and mature. There are two methods you can choose from, namely:- Lean Startup Business Plan- Traditional Planning
Choose the most appropriate method for your business. After that, follow the planning flow according to each method. This stage will help you see potential developments, as well as detect problems that may arise early on.
2. Market Evaluation
Feelings or instincts are not enough. You need to do in-depth research. This research must include internal and external factors that will affect the business later.
Internal factors include the readiness of capital, both in the form of funds and business inventory. You need to have the right inventory planning strategy and forecast. This is an important basic factor.
For external factors, you need to know the business strategy of your competitors in a new area.
In addition, you also need to know market insight in the area before starting to open a business branch in a new place.
3. Recruit the Right Employees and Provide Sufficient Training
When you open a new branch of business, you will need some new employees. Choose the most suitable employee according to you and provide adequate training.
Make sure that they are ready to carry out their duties before you start opening this new branch of business.
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4. Prepare Capital
Opening a business branch in a new place requires capital. In addition to the initial needs before opening a business branch, capital is also needed so that the initial operations can run.
You must be able to estimate how long the process will take until this new branch can run and generate income that is balanced with operational costs. During this time, you must have sufficient capital to survive.
5. Create a Marketing Plan
You will also need a new marketing plan. Each region has a consumer character that is different from other regions. Your promotional strategy must be able to adapt to your potential customers.
This marketing strategy must also include online and offline marketing strategies. The reason is, both offline and online media have strong potential and audience.
6. Prepare Opening Plan
If you’ve done all of the above, it’s time to plan your first day of opening a new business. Consider whether you need a large, media-covered event, or a more modest opening.
You also need to take into account the planning timing. You will need time to prepare for this event. Make a timeline that allows it to be carried out when making plans.
You may also need vendors and work with other businesses. This will require some simple research to get the best deals.
7. Record the Entire Process
It is important to remember that all business processes, including the process of opening a new branch of business, need to be recorded. These report notes will help you evaluate the results of your previous work and avoid the same mistakes when creating new plans.
Conclusion
Before deciding to open a branch of business, you need to have a solid basis for the reason. You also need to carry out adequate analysis and preparation before