If you own and operate a successful small business and are looking to expand it’s not always best to open a new location.  Starting a supporting business outside of your current market can dramatically cut costs and increase the exposure of your brand.  As a small business owner you can benefit by opening a company that produces goods or services that are utilized on a daily basis at your current establishment.  By analyzing your costs and deficiencies you can determine what type of business will best support your current one and bring the most revenue to both.  You’ll need to keep in mind that starting this business will involve the same amount of time and dedication it took to make your current business successful, but the hard work can pay significant dividends. 

Inventory

If there are certain items that your business uses in large quantities or are expensive to acquire, it may be a good idea to start a company that produces those goods.  This can dramatically cut costs for your business as a whole as the new company will be purchasing these items in bulk, which will provide a healthy savings.  It also dramatically decreases the likelihood of a shortage of key items needed to keep your business operating at its full potential.  Lowering inventory costs can provide a sizeable boost to your bottom line.

Marketing

With more resources to dedicate to your marketing efforts you will be able to expand the reach and exposure of your brand.  Through digital channels you will be able to share content to a wider audience.  Linking to relevant articles on each site will help you get found online.  Cross promotional opportunities abound when you have a supporting business.  You will have a chance to host large events that incorporate both audiences and promote how both of your businesses stand to benefit them.

Networking

When you open a new business you are exposed to a whole new set of suppliers, customers and employees.  Using these channels to make strategic partnerships can take your business to a different level.  As the saying goes “it’s all about who you know”.  Whether it is a supply chain or marketing opportunity it always helps to have a diverse network.  Networking is what breeds brand expansion and cross promotional opportunities.  Be sure to connect with them through their preferred channels and stay in contact with them.

Staffing

There are a few different ways to look at staffing when starting a new business.  First, you need to make sure your current business will be in good hands while you focus your efforts on launching your new venture.  When filling out the staff for your second company you may find opportunities to promote qualified lower level employees from your current business into management roles at the new one.  With your time being split in two it will be necessary to have managers who are trusted, experienced and know your business.

Cash Flow

While it’s a good idea to keep the books on each of your businesses separate, having the additional cash flow provides flexibility to both of your companies.  Merchant cash advances and small business loans can aid you when a need arises, but it’s the goal of every small business owner to be independent and financially secure.  Having a second business brings you one step closer to financial freedom and the dream of a truly successful small business.

In many cases small business owners lack the credit or collateral to access the money needed to remain flexible.  Quikstone Capital Solutions provides cash for businesses.  A merchant cash advance from Quikstone Capital Solutions is a business loan alternative that can help your business thrive and prosper, whether you need cash to buy equipment, cash to renovate or expand, cash to purchase inventory, cash to advertise or cash for emergencies. Quikstone Capital Solutions can help. Contact us for a consultation today or simply click below.