When you’ve been in business for a while, you may be considering expanding your retail location to help drive sales, increase profits, increase awareness, and build a bustling business. Jumping head first into a business expansion can be detrimental if you are not prepared for it. We do not encourage letting an opportunity go by without action, but it’s wise to make sure that the opportunity is not going to hurt your business in the long run. When you’re expanding your retail business, consider these tips.
1. Have a Plan
Never jump into a retail expansion without having an adequate plan to sustain both your current and upcoming retail locations. It’s not enough to simply duplicate the same costs that your current store has. Every location is going to be unique, having its own special costs as well as profit margins.
2. Know Your Customer
Understanding your customers is one of the most important attributes to have when expanding. Your customers in a new location may want different products and services. Customers in the new location may have higher or lower standards of quality for what you’re selling, and that needs to be taken into serious consideration.
3. Understand the New Geographical Location
Your location in the city will make a big impact on sales, but it’s not the only factor that determines the success of an expansion. Know where all the local businesses are, how traffic is throughout the day, and how your location will blend in with or change the community around the area.
4. Increase Employee Training
A new location comes with new expectations and guidelines. Spend some time and money retraining your employees or giving them new tools to succeed. Your employees in a retail store can make or break your business and they should be adequately equipped to handle the demands of the rush in a new retail store.
5. Adjust Store Hours
When just starting out, increasing your store hours can help you to garner foot traffic in your retail store. Depending on the type of retail you provide, whether it’s jewelry, clothing, sporting goods, electronics, furniture, or something else, adapt you store hours to accommodate expected foot traffic in the first weeks and months.
6. Start Local Networking Opportunities
Wherever you decide to set up shop, don’t view other retail stores in your community as competition. Look at them as partnerships or opportunities waiting to happen. Offer to work with local stores to compliment what other stores lack. By having a network of retail stores for your target market, you can thrive off of similar or related businesses in your area.
7. Offer Customer Questionnaires
It can be as simple as a piece of paper with a few questions or as in-depth as a multiple page online survey. Use questionnaires to learn more about how your business is doing and to learn exactly what your customers in the area are looking for. You can incentivize customers to fill these out with special deals upon completion.
8. Acquire Additional Funding
When looking to expand your store, you can hurt yourself if you expect to wait for the necessary funds to begin the expansion. Your next big opportunity can be right around the corner. Find additional funding with Smart Business Funding to get a jumpstart on your ventures.
Need to expand your retail business to the next level? Let us at Smart Business Funding help you by advancing the necessary funds to take advantage of expansion opportunities today!