Who doesn’t want their business to grow rapidly? Every entrepreneur desires it, and it’s not new that every business strategy is implemented to achieve this goal. When a business grows as expected, the option to open a new business branch naturally comes to mind.
The main goal is to serve more consumers and have the opportunity to maximize profits. However, managing more than one business is not an easy task. The risks and responsibilities involved should not be underestimated.
This is why, before deciding to open a new business branch, there are several things to consider. As a reference, here are some tips and ways to open a new business branch that you can follow.
Tips for Opening a New Business Branch
1. Ensure the Main Business Is Stable
Opening a branch has the potential to increase business income, but if the main business cannot operate stably, it’s advisable to postpone the plan to open a branch. Many successful companies manage only one business without branches.
However, if expanding the business by opening a new branch is deemed necessary, ensure that the main business has a healthy financial condition. This way, when our focus shifts to the newly opened branch, the main business can still operate effectively even without supervision.
2. Prepare Capital for Opening a New Branch
Another tip is to ensure that you have adequate capital to open a new branch. This capital is needed to prepare the business to operate effectively. With sufficient capital, you won’t disrupt the financial flow of the main business, which could have negative consequences.
Whether acknowledged or not, a new branch may not have the same potential as the main business. Adequate capital will help the branch operate until it can generate profits.
3. Conduct Market Research
Before deciding to open a new business branch, conduct market research first. Research is needed so that you know how much capital needs to be spent and the potential profits that can be obtained. Moreover, research will help determine the right strategy so that the branch has the potential to grow as fast as or even faster than the main business.
The most crucial thing is that research is needed to minimize the risk of losses due to the wrong choice of location, mismatched target market, or other factors considered as reasons for the business not developing.
4. Pay Attention to Supply of Materials or Goods
Deciding to open a new branch means understanding that there are now more than one position to be supplied with the needed materials and goods. So, before opening a business branch, ensure that the new business has easy access to the raw materials and goods it needs.
If this is not taken into account, there is a possibility that the prices of the products sold will be higher than the main business due to differences in distribution costs and transportation expenses. If possible, look for suppliers near the new branch. However, if not possible, make adjustments so that the price difference between the main business and the branch is not too far apart.
Whether acknowledged or not, price differences can be a weapon that can kill a new branch. So, instead of incurring losses, make sure that the method of opening a new business branch at this point is truly considered.
5. Empower the Right Human Resources
When opening a new branch, you will need more manpower to ensure that the operations of both the main business and the branch continue to run smoothly. This is why you need to empower the right, competent, and reliable human resources because you might delegate the entire management of the branch to them.
Therefore, ensure that the recruitment process is done well in advance to get potential candidates. If you’re not sure, you can use human resources from the main business to manage the new branch until you find someone else reliable.
Managing a Company Is Easier with a Virtual Office
Now, those are some tips that can be applied if you want to open a new business branch. For both businesses, new and old, to run smoothly, proper coordination is needed so that both can be developed with the same strategy and have equal chances of success.
If the branch you own is still located in the same city, this may be done easily. But if the new branch is located in a different location or city, you can use virtual office services to facilitate coordination.
As a reference, you can use vOffice’s virtual office services. Not only does it facilitate coordination, but the presence of vOffice can help you save more than 90% on operational costs. This means you don’t need a physical office to manage the branch, and the required capital can be effectively reduced.
vOffice is available in major cities including virtual office Jakarta, virtual office Tangerang, virtual office Bekasi, virtual office Bandung, virtual office Surabaya, virtual office Medan, virtual office Bali. If you want to establish a PT, vOffice can also help with company establishment services.
How about it, interested in using vOffice services? I hope the discussion on how to open a new business branch above is beneficial to you.