No matter what your business is, the main idea is always the same: growth! All entrepreneurs dream of expanding their businesses. While there are many different ways to achieve it, one of the common approaches is expanding your business into a new city. However, there is an array of challenges that comes with it. Here, I discuss what those challenges are and how you can overcome them and grow your company.

The drop in productivity. When an office opens in a new location, there is a starting period when the sales are still not as good as they should be. It takes time to make progress at work and move forward. The main reason for this drop in productivity is a poor marketing campaign. Before you move your business, try to advertise it first. Let your potential clients know that the change is coming before you relocate.

Unexpected delays. When a company wants to expand its offices to a new city, it is crucial to consider potential delays in the process. I had an opportunity to speak with about corporate relocation and find out the most common reasons why these projects run into issues:

  • a lack of communication within the company;
  • poor planning process;
  • not seeking professional assistance; and
  • budget miscalculations.

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Battle the competition. When branching out in a new city, you have to understand that you are stepping into someone else’s territory. The competition will be fierce because they already have a group of clients and all the business connections. You are starting fresh.

The best solution is to start with achievable goals. Have a clear plan in mind, and try to make it happen. It is crucial to be realistic with your expectations to avoid wasting money, time, and energy.

Furthermore, you have to explore the market and look for potential business opportunities.

The absence of awareness and credibility. Another challenge to overcome when expanding your business into a new city is the absence of awareness and credibility. All of your competitors have already built a name for themselves. Unless you are a famous brand, you have to start over and earn the trust of your potential customers.

Use social media and create a strong marketing campaign. You need to focus on having a clear goal, share company values, and prove that you are trustworthy.

Finding the best management. Once your new office is up and running, a potential problem might be the lack of good management. Finding quality employees is always tricky, particularly if you are starting a new office in a new location.

A good approach is to send an experienced manager who will be at the new office for a month or two. That’s plenty of time to find and train a quality replacement.

Understanding the cultural differences. Companies often expand to other countries as well. The most obvious problem is the cultural differences between your country and the new location. Be sure to research the customers and understand how they differ from your current clients.

If not taken seriously, these cultural differences can prove to be fatal for a new business.

Expanding your business into a new city requires time and patience. I hope that you now understand the common challenges of expanding your business into a new city. Do your best to prepare, make a plan of action, and be patient. It takes time to start fresh at a new location. With that in mind, best of luck with your expansion!

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