Expanding your business across the U.S. sounds fantastic.
More customers. Bigger markets. A whole lot more opportunities.
Then, you look at a map and remember just how absolutely enormous the country actually is.
A delivery that takes two days in one state might take a week in another. Different states have different rules, and costs can vary widely depending on where you’re operating.
Suddenly, adding a few new states to your customer base involves rather more planning than you expected.
Here are five things you should consider first:
1. Don’t Pick A State Just Because It’s Big
California has millions of potential customers.
It also has plenty of competitors who would quite like those customers for themselves.
Before choosing where to expand, look at demand, competition, and what people in that market are prepared to spend.
A smaller state with fewer established competitors might turn out to be a much better opportunity.
The biggest market isn’t necessarily the one where your business will make the most money.
2. See What The Competition Is Doing
You might be the first business people think of in your hometown.
Three states over, nobody knows who you are.
And they’ve probably already got a perfectly good supplier.
Take a look at who you’re competing with, what they charge, and what customers like about them. There’s a good reason market research matters when you’re planning to expand.
If you’re offering exactly the same thing for the same price, why would anybody bother switching?
It’s wise to have an answer to that question.
3. Check What It Costs To Do Business There
Renting a warehouse in Ohio isn’t going to cost the same as renting one in California.
Neither will wages, insurance, or plenty of other everyday business expenses. Before choosing a new location, look at what it costs to operate there.
If you’re considering the area, WSI Midwest warehouses offer storage and distribution options worth comparing with setting up your own facility.
You want to know what makes financial sense before somebody falls in love with a very impressive office building.
4. Think About The Time Zones
Your business is based in New York.
Now you’re taking on customers in California.
That’s a three-hour difference, which might not sound like much until somebody calls at 4:30 p.m. Pacific Time. It’s already 7:30 p.m. back at your office.
Think about whether your current customer service and sales hours will still work.
You may need different schedules or people working in other time zones.
5. Think About Returns Before They Happen
Selling to customers across the country is exciting.
Getting products back from them can be less enjoyable.
Before expanding, work out how returns will be handled, what they’ll cost, and where customers will send them.
A return from the next town is one thing. A large item coming back from the opposite coast is another.
You don’t want to figure that out after the first complaint.
Final Thoughts
A bigger customer base sounds sublime.
A bigger collection of unexpected bills, delivery problems, and unhappy customers? A whole lot less sublime.
That’s why it’s worth getting into the details before making any big moves.
You don’t have to anticipate every possible problem, but you should have a decent idea of what you’re signing up for.
