5 Tips for Expanding Your Business into New Markets with Agility in Mind

Expansion of any kind doesn’t come without some pain and risk. The decision to initiate change in your business brings with it some uncertainty. Pursuing new markets, relocating, or creating new teams are all challenging, and you have to keep your eye on the goal while staying flexible about how you’ll get there. It may be necessary to change strategies midstream when you see they’re not working — it’s all about remaining agile.

That doesn’t mean the plan won’t succeed; it means that it will require persistence and flexibility. You can take specific approaches that will increase your firm’s agility as it gets established in a new market.

5 Tips for Expanding Your Business into New Markets with Agility in Mind:

1. Assemble Allies

In preparing to expand into a new city, it’s critical to start by building a network in your new market to establish connections and trusted sources of advice. Consult trusted associates for information on local services, vendors, and protocol. Mine your organization for valuable contacts that already exist, and reach out to prospective allies before the move is underway. Consider new hires based on their leverage in the new market. Learn how Japan-based healthcare company, Asterism, set up a network in Portland Or., before even moving into their new office. 

2. Expand your scope

Stay flexible in choosing space in a new market. Consider neighborhoods beyond the ideal for lower cost — especially in locations like NYC and San Francisco where rent prices can be crippling. Using Manhattan as an example, downtown office space is, on average, $23 PSF cheaper than comparable space in Midtown. It’s possible to see significant savings by moving into less-trendy neighborhoods, and these spaces can still meet your requirements.

Some common elements for a desirable workspace location are proximity to transportation options and a walkable, stimulating neighborhood. These can certainly be found in less expensive neighborhoods. Enter the search with an open mind.

3. Consider lease alternatives

The typical commercial lease term is from 5 to 7 years. This can be problematic for expansion, since growth is so unpredictable. A good approach can be to begin by using flexible office space, through office sharing or a similar solution like coworking. This allows you to expand the space as needed without the entanglements of a traditional lease.

Expanding into a new market is a time of rapid change, and avoiding the long-term commitment of a commercial lease helps your firm to stay nimble enough to adapt on the fly.

4. Get Tech as you need it

Certainly a new office has basic technology requirements that must be met. Before you purchase equipment and software that you feel will be needed for the new space, consider some more flexible alternatives.

Rather than committing to specific applications by investing in them upfront, consider paying for the services as you need them. So-called SaaS companies rent software that is hosted in the Cloud. No need to purchase software and install it on your machines, so you have the option of changing things up if the need arises –without spending unnecessarily.

5. Look at staffing needs

Setting up a new office should always involve an experienced manager who is familiar with the company culture and mission. Additionally, one or two new hires that are established in the new market can be a key to successful transition. These may be current leaders in the local market or people who have previously worked there, but had to relocate and are waiting for an opportunity to return. The company then has the benefit of an established local network. San Francisco based-AdsNative, for example, sent one employee out to NYC to set up a satellite office — thanks to PivotDesk, he was able to find a class-A space with ease. 

It may be the case that extra staff is needed during the transition, but not once the operation is functioning smoothly. Or, as often happens, growth may exceed your predictions, requiring added employees. Either scenario has an effect on space requirements, which can fluctuate during the early years of a business. A traditional lease does not allow the flexibility you need to respond to the changing needs of a growing business, so going that route does add some risk to the plan.

An agile approach is key for setting up an office in a new market — that’s where we come in. We’ve got a range of office space services designed to help you find flexible office space quickly so you can get back to focusing on what matters: your business.