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4 Important Questions for Business Expansion

Originally published: 03.07.16 by Dan McKee


4 Important Questions for Business Expansion

Many households, offices and buildings need elaborate HVACR services. This demand has seen service providers record exponential growth. If your HVACR consulting business has grown, you may be thinking of opening another location. While this year might be the best to expand, think of these four important questions and provide the answers for each.

What's your reason?

Find out the reason you need to venture into an additional branch for your services. Is the underlying reason so compelling that it can motivate your ambitions? If not, resist the lofty dream and wait for a more opportune time.

If you realize that your ambition is enough to fight the challenges of opening a new office, then go ahead with the plan. The building of a major infrastructural project could be a solid reason to start a new HVACR office. Here, set goals for your new venture.

Is your first location a solid foundation?

If your current or first location recorded marked success, you may be tempted to open a new one elsewhere. However, you need to know that your business fortunes can stretch as you open a new location. While you need money to set up the shop, you require resources for marketing it to


prospective clients.

Therefore, ensure you have a steady flow of income to the existing business before you open a new one. The last thing you want is drawing resources from the old location to finance projects in the new one. Each location should be self-sufficient.

If you encounter challenges at your current location, strive to overcome those first. Otherwise, you may run into similar challenges at your new location. Additionally, you will not have the experience or knowledge of dealing with these.

Where will your next location be?

Is your prospective new location ideal for the business? Before you open shop, find out if there is demand for your services and products. This may entail talking to residential tenants of apartments and offices as well as homeowners.

Identify prospective customers by examining any existing HVAC contractors in the desired location. While fair competition is good for any business, existing businesses may drive you out of clients, thanks to their accumulated experience in that area.

At the same time, ensure you do not place your new business too close to your old one. This is dangerous as you risk cannibalizing your own sales. Let each business have its own base of trusted clientele.

When considering the location, do not open a new venture too far away as this creates a challenge of management; you may not identify challenges and solve them as they arise. Instead, choose an area where you can visit in a considerably short time.

What is your budget?

Just like opening a business for the first time, your prospective HVAC venture will come with its fair share of challenges. Most challenges are financial as you set aside funds for the new venture. For example, you may need to repair the building that houses the new office of your HVAC company.

Additionally, you may need to invest in a cloud-computing service that links your old and new offices remotely. While the rent at the new location may be higher than the existing one, you need to draw a meticulous table of budget.

You can expect to come across a number of unforeseen expenses. Business specialists recommend the inclusion of a miscellaneous item in the budget. Usually, this amount is 35 per cent of the total budget.

Conclusion

The prospect of opening a new location for your HVAC contracting business is exciting. However, rushing the decision can transform the excitement into frustration and regret. To make the right move, take advantage of a professional business consultant near you.

The professionals at Service Champions can help you plan your desired expansion. Contact them today and take advantage of painstaking planning approaches. They will advise you on the feasibility of the expansion as well as tips and tricks to start drawing profits soon.

 


Dan McKee heads up the marketing efforts and provides digital marketing strategies to the marketing team at Service Champions, HVAC service providers in California. For additional information, visit servicechampions.net.

 




About Dan McKee

Dan McKee

 

Dan heads up the marketing efforts and provides digital marketing strategies to the marketing team at Service Champions, HVAC service providers in California. For additional information, visit servicechampions.net.




Articles by Dan McKee

4 Important Questions for Business Expansion

If your HVAC consulting business has grown, you may be thinking of opening another location. While this year might be the best to expand, think of these four important questions and provide the answers for each.
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