Business Expansion – Part 2

Yesterday we talked about the “Research and Dream” phase of expanding a business…today we’re moving right along to the “Planning and Executing” phase.

Plan it out!

So, let’s start with the Planning aspect!  In this stage, it’s imperative to create a solid business plan for the market you’re wanting to expand into - and yes, one that is different from the plan you might have for your current market (chances are, the new market is night and day from your current market).  This business plan serves as a roadmap as you dive into the expansion.  It will help you to set strategic goals for the new territory, to create a promotional strategy and sales plan, to determine processes and staffing plan,  and have a very solid financial plan in store.  <<Insert shameless plug for The Simple Plan, our easy-peasy approach to writing a business plan!>>  We also have a one page Quick-n-Easy Business Plan or a 13-Step Business Plan that you can download for free, if you are looking for tools to get you started with the planning process.

What does the market tell you?

If you’ve answered alot of the questions we discussed in the post yesterday, then you’ll have a ton of the information you’ll need to put a solid business plan together.  Of course, it’s tricky to know how many brides you’ll book the 1st year you enter a new market…but based on the research you do, it should help you to at least put an educated guess on paper and will be great to give you some goals to work towards once you enter the new market.

Managing TWO markets

Okay, so let’s say you have your solid business plan in place for the new market and you’re ready to roll…but, what are you going to do with the existing business in your current market?  For me, this question was a no-brainer because even though I was physically moving to Texas, I wanted Sweet Pea Events in Seattle to thrive.  This was nearly my baby, after having built up my business there for several years.  So for me, it made sense to bring someone on board to take over that market for me and Holly-Kate Foss was the perfect person to do just that!  She now manages and runs all Seattle related events, and I manage the Dallas market.  This has worked so well for both of us, and might also be a structure that works for you.  However, it might also make sense for you to hire an employee as a Territory Manager for your current market so you still have a high-level of involvement.  No matter what you decide, just keep in mind that expanding to a new market is no easy feat and will likely require you to adjust your staffing plan for your current market while you get your new market up and running.

Execution

Now comes the hardest part of all, in my opinion…the Execution of your plan.  Before I expanded, I thought this would be the easiest part – I mean, afterall I thought, “I’ve been a Planner for years so how hard can it be to just launch into a new market?”  Oh my, this was a terrible assumption and although it was not impossible of course to expand into Dallas it was MUCH more difficult than I thought.  Why?  Well, to fully immerse yourself in the culture, to establish your presence, and to build relationships with people takes time.  I know this all too well because it’s how I built up Sweet Pea in Seattle, but somehow I thought I would just have an insta-business in a new market…but the truth is, it was like starting up a brand new business.  No one knew who I was, no one had heard of Sweet Pea Events (humbling), and I know alot of people assumed I was just a hobbyist and wouldn’t stick around.  I had alot of barriers to break down that I hadn’t even anticipated.  So, although I was SUPER confident in taking the risk to launch my business in the south, and had done plenty of research and had a solid business plan, I definitely did not anticipate some of the obstacles I ran across.

All this to say, in no way do I mean to discourage you from expanding into another market – but to convey that in my experience it truly is like starting up a new business.

Join us tomorrow to learn about the the 3rd phase of expansion, “Review and Refine”!