Opening a new branch of business is a sign that the business you are running is headed in a bigger direction. There are two reasons why entrepreneurs flock to open new business branches. First, the growing number of consumers which causes various requests not being served. Therefore, inevitably you have to open a new branch to reach more consumers and be able to fulfill the service. Second to double the profits. This is done if the business gets a good response and makes entrepreneurs try to open new branches in the hope of getting the same results.
But opening a new business branch is not an easy matter. Setting up more shops, completing and supporting operations requires smart and careful planning. You must be able to open a branch of business without compromising your main business. And even better if you are able to duplicate or even exceed your main effort. For those of you who are in the business development stage by opening a new branch of business, the following Journal provides some effective tips that can be applied.
Main Business Stable
Effective Tips to Open a New Branch of Business No need to rush to open a new branch. Many businesses are successful because they focus on managing one branch of their business. However, if your business development can be obtained by opening a new business branch, then make sure the first major business runs smoothly. Opening a branch requires a lot of cost, time and attention. Therefore the smoothness of the business parameters is not only because it runs well, but also runs stably. So that when you focus on opening another branch, the main business can continue even without your monitoring every day.
Effective Tips to Open a New Branch of Business After making sure the main business is running stably, another important thing to consider is capital. Opening a business branch is almost the same as opening a business for the first time. You need a fee for all-new needs be it rent, inventory, promotions, employees and so on. And to remember again is not necessarily new branch income either capital or generate profits in a short amount of time. To prepare for this, sufficient capital is needed to sustain your new business and still supply to the main business. Don’t let the new branch interfere with your main business.
Conduct Market Potential Research
Effective Tips to Open a New Branch Both in terms of location, fairly easy access and the appropriate target market. These three things are related to each other. You should choose a location that has prospects in the future. Usually the location of prospects in the future is a location that is easily accessed by your target market. Do not be too pushy to open a branch of business just because it is a good place. But it must be considered whether your target market is in the vicinity of these locations or not. Don’t be afraid and tired of doing surveys and finding locations that are truly strategic for your business.
Pay attention to material supply
Effective Tips for Opening New Branches In addition to access to customers, make sure your branch also has easy access to raw materials. The supply of raw materials affects the profitability of your business. There is a possibility of an increase in product prices due to price differences, distribution costs and the time of supply of raw materials. You should look for suppliers of raw materials that are close together for ease of distribution and reduce costs. However, if that is not possible, try recalculating the price of the product to be marketed in the new branch. You can just raise and lower prices, but try not to be much different from the prices in your main store.
Right Human Resources
Tips for Effective Opening a New Branch of Business Opening a new branch means that you are ready to recruit new human resources. Although it is a branch, the problem of hiring human resources should not be numbered. Because any business certainly requires competent and trustworthy human resources. You can assess new HR competencies by looking at their reliability, the level of mistakes committed and their leadership abilities. You must prepare for this recruitment in advance. If you haven’t found the right person yet, it doesn’t matter if you are the one who jumped in directly to manage it. You can also entrust your old employees to temporarily manage the new branch before finding another reliable person.