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Once you’ve reached a point where business expansion is inevitable, you decide that rather than expanding at your current location, you’d like to break into totally new market areas. That can be a very good idea on several fronts. Not only will you be able to produce at least double the products without holding up production at your current location while expanding, but you can be a real presence to potential corporate clients in a new area.
Yes, you can network online, but sometimes, a face-to-face meeting clinches the deal. Unfortunately, it’s really difficult to manage more than one location from a single office, and so you would probably want to travel back and forth as the need arises. Here are some tips for a seamless transition to operating from multiple locations.
Splitting Production or Doubling Output?
The first thing you may want to think about is whether you want to simply manufacture the same products at both sites or split production lines between locations. For example, you operate a canning company that deals primarily in vegetables and soups. You want to branch out into other products and so you need to add production lines to handle the new items. Instead of adding a line at your primary location, you have chosen to purchase different equipment more suitable for the new products.
On the other hand, you may not want to add anything else but are simply looking to increase output. In this case, you’d simply need to set up production lines similar to that which you are already operating, and it becomes a matter of training new staff. For this, you’d need to be present or bring trusted management along with you.
Benefits of Mirroring Production
The lower cost of shipping is one of the major benefits of mirroring production in two or more facilities. If you get an LTL freight quote for B2B products, you can ship them from the nearest facility from the client. Over time, the reduced cost of shipping could take a huge chunk out of your startup expenses.
Also, as time goes on your presence will be required less and less, but you’ll still want to make an appearance regularly. There is nothing like keeping the team focused as much as seeing the CEO or director every few days.
Finally, what you may want to consider is having a home in both locations. You may want to keep your primary residence where it is now in the city, i.e. where your original plant is located. Even so, you will want someplace to stay while working from your other locations. If each visit is going to be a bit lengthy, why not rent a condo rather than live out of a suitcase in hotels?
Also, don’t forget to take time off to refresh. Traveling back and forth is the ideal time to plan mini vacations because you will be traveling anyway. You need that time to rejuvenate after doubling your responsibilities, so always plan a bit of adventure before heading back home. You are doubling production, but there is no need to double your stress. With the right people in places of authority, there is no reason not to take time for you!