Expanding the Real Estate for Your Business: 5 Essential Tips
All businesses strive for growth but growth then brings some of the greatest challenges such as expanding to a new location that can serve your company’s needs. So what do savvy entrepreneurs and business owners need to consider when deciding on their company’s real estate expansion? What follows are five considerations that are imperative to making an informed decision that will serve your company best.
- Develop a strong management team. It is exciting to expand into a new location but this novelty can quickly wear out if you do not have the right team in place to run that new location. Make sure you have a team you can trust before investing your company’s hard earned money into new real estate. First, identify the best people within your company to move to the new location. Then, if necessary recruit externally and make sure you put potential employees through a well-devised vetting process that includes how they will tackle the challenge of helping a new location thrive.
- Standardize your business process. Before you start the exciting task of scouting out new locations make sure that your have a tried and true system that can be transplanted to your new location. This system needs to have been tested thoroughly at your current location because you can be sure to anticipate new challenges at your new location. It comes with the territory so make sure you have a standardized system that can easily be placed in the new location in order to minimize the consequences of unforeseen problems that you can be certain will arise.
- Assess the ways that your current building meets your needs and the ways that it doesn’t . Yes, it is great that your company needs to expand – but not just to anywhere. Expanding is not only a chance to grow in profits, but it is an opportunity to seek out a place that can serve your company better than your first or previous location. Do a thorough analysis of your current location and the ways in which you wish it could serve you better. Combine this with a list of how it already serves your needs. Once you have done this you will have a great outline of what you are looking for, and most importantly, what you are not.
- Budget for the preparation of this new location. When considering what your budget is for purchasing your new commercial real estate you will need to also consider what you will need as a budget to prepare this new location. There is no perfect location. And if even if you think you have found it, get ready for that bubble to be popped, as things will come up that will require immediate resources to improve or fix to meet your company’s needs.
- Research construction companies. A part of anticipating what you will need in your commercial real estate preparation budget is knowing the history of the building. Interview former owners and find out about the materials that were used in constructing your potential new location. Furthermore, make sure you set aside funds for contingencies when dealing with contractors.
Knowledge is most definitely power when it comes to commercial estate acquisition – but not only do you need to know about the building, but make sure you have a sound understanding of your own company as well. More information can be found if you visit the Altus Group website.