How to Turn a Home-Based Business into a Brick-and-Mortar Business
If you’ve been building a home-based business for the last several years, you’ve probably wondered about the benefits of upscaling to a brick-and-mortar business. While the risks are certainly there when transitioning from a smaller business to a larger one, there are also many benefits involved in pushing your business to a new level of success in its operations.
Remember that a brick-and-mortar business will have different problems associated with its functioning than a home business, not the least of which will be the costs associated with larger amounts of product to be made and expenses related to renting space and hiring more employees. That being said, a company that increases its size, when managed correctly, can also increase its profits exponentially. Here are just a few ways that many savvy business owners can up their game when it comes to business expansion.
Choosing a Location
In order to choose a location, you’ll have to understand your needs as a business owner as well as what your customers and clients will require from your business to solve their problems. Will clients or customers be coming to your office to hash out contract details, or will you and your employees be mainly conducting business via off-site meetings, telephone calls, or email? Or are you more of retail business? What kind of style of operation are you going to have. These are important questions to consider before choosing a location.
Answering questions such as these can help determine whether you’ll need a centralized location for your business (that is, for example, in a downtown location) or if you’ll simply need space that is nearer to your home. Do other businesses in a similar market rent space near where you live? You may try asking them about the benefits of their location. It’s important to also remember that you might want a space that does not include a huge commute; it certainly doesn’t hurt to look for space near where you live to keep the driving hours down!
How Real Estate Space Relates to Business Needs
If you’re planning on selling a product, you’ll not only want more space to create the product, but you’ll also want to develop a manufacturing process and research manufacturing equipment. This will help you be sure that the space you will rent or purchase will accommodate your manufacturing needs. If you’re wholesaling a product or you plan to do a lot of shipping, on the other hand, you’ll probably want to choose a location with warehouse space or other extensive storage facilities.
Funding Your Business
In order to expand your business, it’s quite possible that you’ll need a funding source of some kind unless current revenue would provide enough funding for expansion. Funding sources come in many forms and can include personal savings, bank loans, angel investors, and even second mortgages. Choosing manufacturing equipment such as conveyor belts, packaging machinery, pumps, or compressors can be a challenging process. You have to know the purpose. There are many considerations for every piece of manufacturing equipment.
To calculate what you’ll need in terms of funding, you’ll want to take time to honestly appraise your expenses. Will you have new manufacturing costs in your new location, particularly if you’re upscaling your manufacturing needs? Will your new space be in an inexpensive neighborhood, or will you need to rent space in the commercial sector of your town or city? One way or the other, be sure that you have a good estimate of your future business costs, which will help you budget your savings or present a loan officer with a plan on how your profits will counterbalance the amount of funding that you’ll need.
Who to Hire?
To run a small business, every business owner wants a staff of people who are reliable and credible. Fortunately, planning out what your company needs in terms of employees is a great way to save costs on unnecessary staff. If your business relies on manufacturing as its chief source of revenue, you may want to interview people with experience creating a product similar to the one you’re selling and see how well you might get along with them. Checking references and work history is also a great way to make sure that a potential employee is responsible and up to the job.
Hiring family members can be a great experience, and if it works for you, by all means keep on with a system that makes you happy. Be forewarned, however, that many a good business ran into trouble when personal feelings got in the way of sensible executive decisions. If a relative isn’t cutting the mustard when it comes to job performance, you need to be sure that you can discuss how to fix the problem with them without creating personal rifts that can last a lifetime.
For these reasons, increasing the capabilities of your business may be a challenge, but you may find that your ability to turn a larger profit and make new strides in your field is worth the effort. Remember, if you’re passionate and willing to put in the time, anything is possible. Above all else, be sure to enjoy this new journey!
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