If your plans are falling into place, business is bound to grow. Sales will zoom higher. New products will be introduced. Order books will swell. And by all means, your current space will become inadequate.
Before we jump into what needs to be done, there are few assumptions that need mentioning.
- Your business is no longer a one man army. You have an army of managers and people below them who get things done.
- Your customer list has elongated, implying you have to intimate more people before shifting over
- Your business needs to be up and running from day one to stay on track with the order book
All that said, here are some major things you need to bear in mind while expanding your business to a new location.
Handling the assets
Your tangible assets consisting of machinery and office equipment need safe transit and installation in the ne premises. For a product oriented business, it might even be necessary to invest in new equipment that needs to be safeguarded and taken care of during the expansion process. Rigid controls for access, use and training to new employees must also be established to avoid any damage.
An easier and effective way of handling assets when business is expanding rapidly is to assign the responsibility of maintenance and security to specific employees. They could be mechanic personnel who could possibly be using the equipment for most part of the time. Otherwise, it could be a manager who is responsible for operations and equipment monitoring.
Inform stakeholders in writing
Stakeholders include those who have invested their money, efforts and time into the company. It also includes employees and vendors who deal with the company and are dependent on it for their individual benefits.
When a business expands out of its current form, confusion as to what happens next is bound to arise. In some cases, it can even leave a bad taste with the employees thus hurting their morale negatively. Vendors who supply goods and services to the company also undergo a similar situation.
To avoid any such situation, it is better to inform them well in advance through writing if possible as to how the business is planning to branch out and how each of their individual relations with the company will be sustained.
Also, your business would also want to inform government agencies from where registrations, business permits, licenses, etc. are obtained. In some States, agencies require that business intimate their relocation or change in business identity (which often happens in business expansion) in writing.
Logistics and supply chain management work with clockwork precision. Business expansion is like throwing a spanner into that clockwork mechanism which can bring the whole system to an abrupt halt.
So how does a business ensure it is up on its feet and moving on even after the scaling up or moving into a new premises? There are who help do that. These service providers help a smooth transition of all equipment, stationery and office set up intact from one location to another. They also help to install the machinery in the exact layout in the new premises which helps the business to resume its operations without having to suffer downtimes.
The moving out or the reinstallation can be planned overnight so that no productive time during the day is wasted.
What after Business expansion?
When a business expansion happens, a business by all means lose its previous identity and becomes a new one.
Will it be a new business with a new name and form?
Will it be treated as subsidiary owned by the first business?
How will customers and other stakeholders engage with the business?
These are also some factors that need to consider by the C-Suite to determine capital needed to achieve the goal of business expansion.
It would be ideal to sit and conduct a detailed planning with an Attorney to sort of legal implications. An accountant can deal with any possible financial adjustments. Business packers and movers will ensure that your business is not going to suffer shortly from the displacement.
The end result will be smooth operations from day one that will yield profitability.