The Advantages of Geographically Expanding Your Small Business
If your small business is even mildly successful, then it makes sense to expand to other neighborhoods, counties or states.
There are many advantages in such a move, as explained below.
The first advantage is, of course, increased sales as more customers start buying from more of your outlets. The products that you sell could vary by geographical location.
Since you will need to purchase more products to handle the sales increase, you will be in a position to negotiate better prices through bulk discounts. You will probably also be able to get better credit terms with your suppliers.
Inter-location Product Swapping
One more advantage you will have is that you can swap products between your business locations. If you have products that are not selling well in one location, you can send them to another, in the hope that they might sell well in another area.
If you would have had only one location, that product would probably end up as dead inventory.
Your Stores Can Help Each Other Out
If sales at one location have weakened or slowed down for some reason, your other locations can help your bottom line by keeping the money flowing. This will help your business survive the rough patches until things pick up again.
Building Up Your Brand Name
More stores means more respectability and publicity for your small business, and your brand name will build up as you expand. This will pull in additional business.
Expanding your business is a risk that may have big payoffs but that would require a lot of sacrifice on your end. If you are willing and ready, work hard and keep your eye on the prize!