Are you thinking about setting up a satellite office?
Before you make the big move, there are a number of factors to consider when deciding on when expanding and opening a satellite office is the right time for your firm. More than likely, you are at a point in your business where you are ready to expand and simply do not know how, or when, to take that first step.
The first step is deciding to go for it. Now, after careful consideration, you have made the decision to set up a satellite office and you are ready to take that next step. But what is that next step?
While growing your team and expanding your business is exciting, business expansion comes with a number of stressors and challenges that can make the entire process feel overwhelming, and even impossible for many. First, set your business up for success by organizing those countless tasks and responsibilities that feel insurmountable. Break everything down to the basics, simplify your process and use a building B.L.O.C.K. method.
Much like the towers we built as children in preschool, successful business growth and expansion require foundational pieces to build on. You might be surprised to learn that building blocks are scientifically proven to build important skills for young impressionable minds. This still holds true throughout our adult life as we continue to develop new skills as entrepreneurs.
Use foundational “building blocks” as your starting point, and then build out by incorporating other components needed to expand your business. Let’s begin your expansion process by exploring each of the components in this building B.L.O.C.K. method: Budget, Location, Opportunity, Connection, and Knowledge.
Budget: When setting up a new satellite office, there are several costs to take into consideration. Carve out an ample amount of time to map out what your budget looks like.
Break down what you can, and just as importantly, what you cannot afford. Take into account the vast range of expenses associated with your expansion. What is your budget for new hires? New location means new employees on your team. How many new employees will you have stationed at your new location? What about the new office furniture and amenities needed at your new location? Take the time to jot down any expenses that come to mind and calculate what the overall cost of your business expansion is going to look like. Not factoring in surprise expenses can hold you back and that lost time will cost you, which is another vital aspect of your budget to keep in mind.
One of the most important aspects of your budget to keep in mind is factoring in the time you and your employees put in towards making your new location a reality—that is also time that is taken away from your business at the moment.
It is important to lay out any costs that come to your mind, so be sure to take the time to account for and organize your finances before taking any other steps towards expansion. Doing so will paint a clearer picture of what your next steps will look like. When you calculate what you can afford, keep all these expenses in mind. Once you have gathered all your information, you will more accurately be able to decide what your new location costs will look like.
Location: Choosing a location is fundamental and by far the most important component of your decision-making process.
Ask yourself, “Why am I expanding?”. There are a number of reasons why you may be expanding your business to other cities, or locations. Perhaps, it could be that a client has asked you to service another location—generally, that is the most common reason when considering which location to expand to.
What are your goals for your new location? If your goal is to expand into a new area of practice, take into account what other firms are located within a 5-block radius of your ideal location. You want to see where new opportunities, and new competition, present themselves for you. Is your office now located in an industrial area? Fantastic, now your opportunities for additional business goes up. An easy Google Maps search can help you with this. This is also when a clearly planned budget comes into play. Depending on what you are able to accurately afford will ultimately set the tone for what you settle on are far as a location.
Opportunity: When offering your current services to a new market, take into consideration all your opportunities. Business growth is possible through more than one outlet.
You could expand to a new geographical area and perhaps open your new satellite location in a new town, or you could use a different channel to get to your new clients. If you are not sure what your future location needs will be, consider beginning your expansion with a virtual office. For example, if you already have an established physical location, you may want to start your new satellite office remotely.
With work provided remotely, you can plan on providing the same services as well as tapping into new areas of practice for future clients. Beginning with a virtual office is the easiest and least risky option to expand your firm. With a virtual office you can provide services to new clients from well, virtually anywhere. The advantage is that you already know how to successfully provide these services, this option is budget friendly, and ultimately leaves you potential for high return.
Also, if you have a slim budget to start with, look for flexible office options such as coworking spaces, month-to-month leases, and even utilizing different areas in your current office building.
Community: The mission or purpose of your business may be shifting as you expand. Keep your community and employees in mind as these changes happen.
Just as you connect to your community to provide services, connect your employee’s roles to your company’s overall mission. Whether it is expanding employment opportunities with bringing on new hires or providing opportunities for your employees to work remotely, employee connection and the feeling of community is an integral part of your expansion.
A survey by Twingate of over 1,000 employees found that 89% of remote employees working out of their homes felt isolated from the rest of their team. Now let’s face it, this hybrid workplace where some employees are working from home, some are at the new satellite location, and some are working at the current office is not going away anytime soon. Establish clear communication guidelines and expectations as your company expands that align with your desired company culture. For example, how will your employees prefer to be communicated with when they are not working out of the satellite office? Are text messages ok? Are Sunday evening emails acceptable? Set up guidelines for what is and is not acceptable means of communication for your employees and bridge the gap that business expansions can often create.
Knowledge: It is essential to have knowledge in a wide variety of areas when opening your satellite office. If possible, consider outsourcing your business needs to knowledgeable people.
Business outsourcing is booming in popularity. As a business owner, try reaching out to external suppliers for assistance with IT services, payroll, accounting, and so much more and your business grows. Outsourcing can ensure your firm is compliant with labor laws, taxes, and regulations.
Another benefit of outsourcing is cutting labor costs as you keep your budget in mind. Instead of employing someone full-time, outsourcing your work allows you to carry a flexible workforce of individuals who only work when you need them—and you’ll only pay for the services you need. Instead of hiring new employees to handle specific tasks, you’ll have a variety of specialists at your disposal. This can save you time and money for onboarding and training at your new location.
Outsourcing helps employers focus on the heart of their business while outside experts handle other necessary business functions. You can keep your staff handling core business functions while outsourcing other business needs in areas you may not be as knowledgeable in.
Choosing the right people to outsource your work is key. An outsourced individual or team should have the knowledge and experience to hit the ground running for you. Before you outsource any of your business needs, be sure to research the company or individual and their track record of service.
As a business owner, a satellite office is a way to keep your business moving forward. That means focusing on what matters most. With a little planning, using this BLOCK method will help you narrow your focus and find the solutions to your unique business needs–ultimately making your business thrive as you consider expanding to a satellite location.
Paloma DeHaan is a freelance writer and designer. She works closely with law firms to provide digital marketing content, ghostwriting, copywriting, and translation services that increases social media attention and search engine visibility. She enjoys motherhood and running a household, while creating content invaluable to professional service providers.
Photo credit: Bethany Legg on Unsplash.com