There are plenty of resources you can quickly tap into when looking at a new location. Local economic development agencies and chambers of commerce are great places to start. In addition, look at other research. A 2011 CNBC special report, for example, ranked states from best to worst for business. Virginia took the top spot, with Kansas at No. 11 and Missouri at No. 16. By using research resources such as this, you can decide if it’s a smart move to open a shop or office in another location.
Spend time looking at who your competitors are prior to deciding on opening a new location. Is there a need for your services/products? Is that market already saturated? If you do your research ahead of time, you will lower your risk when it comes time to open the door.
Make sure to research the tax and legal implications of a move. If your company’s headquarters is based in one state and you open an office in another state, you’ve created a “nexus” which can imply tax issues across state lines. Be sure you talk with a CPA or tax advisor.
Line Up Your Internal and External Functions
After deciding you want to open a second location, there are two main areas of your business that you need to consider when expanding: external and internal. The external issues include registering your business with the appropriate state authorities, reviewing local regulations and completing a competitive analysis. The internal functions include making sure you have good standard operating procedures that can be replicated in the new location, tapping your existing clients for connections in the new location and ensuring the new location appeals to you as the business owner.
When registering your business, start with the secretary of state’s website. An online service called Biz Filings also can help register your business in other states. Most secretary of state’s offices require you to have a registered agent available during normal business hours at a business address in their state.
Regulations change by state, municipality and even at county level, so doing research on your prospective location prior to actually opening a physical office will save time and stress if you don’t meet the requirements.
Internal preparation is as important as external. Standard operating procedures are a must when opening your second location. These are necessary items in maintaining the same quality and culture from one office to another. The standard operating procedures should be developed in your home location by staff who actually complete the tasks. These procedures will allow clients to receive the same service from one location to another.
Engage Your Clients and Customers in the Expansion Plan
Remember to engage your best advocates: your existing clients. If it is appropriate, leverage your current clients by reaching out to those that have an office or operation in your new location. These folks can help you not only open your doors, but keep them open.
Stephanie Isaacson is president of New Horizons Enterprises, a woman-owned, environmental solutions company with offices in Kansas City and Lincoln, Neb. (816) 569-5256 // This e-mail address is being protected from spambots. You need JavaScript enabled to view it









