So business is booming, and the idea of opening an additional interstate office is an appealing one.
Or maybe business has slumped, and the trading landscape looks greener in some of Australia’s other states.
Opening extra offices in other Australian states, however, can also open up a real can of commercial worms for your business if you haven’t prepared properly.
Here are three things you’ll need to think about before taking the step, including business registrations, the market for your product or service, and how to overcome the host of communication challenges that can occur when you have employees in different cities.
Whatever you do, don’t neglect your legal homework. A business can come tumbling down if it’s built on faulty foundations which flout the requirements of the state in which it’s based.
Your product or service may enjoy a secure niche in your home market, but are you sure demand exists in your planned new state?
Jason Daniels of accounting firm PricewaterhouseCoopers suggests carrying out a full business analysis of your existing business before taking the risky step of opening another store or office interstate.
Using a successful Brisbane client as a case study, he points to the importance of his client having a thorough checklist before opening a new store in Sydney.
"The beauty of this client is that he understands why his business works . . . and the thinking behind his checklist,” he said.
“Does the store and location tick all the boxes? Look at demographic information. Where are your potential customers likely to come from? Other practical factors include the visibility of the store from the road and the style and size of the store and the types of stores nearby.”
Carrying out due diligence on your selected area is a must. Check established brands, popular trends and planning developments closely. Do you really want to create a new shop only to find that a SuperDuperMegaStore is opening next door in six months’ time, selling exactly the same thing only cheaper?
How will your employees and colleagues collaborate if you have two or more workplaces based in different states?
You need some strategies and technologies in place to streamline your entire communications system.
If you’re not working in the cloud already, now’s a perfect time to spread your wings.
Don’t be put off if you’re set on interstate expansion. Just familiarise yourself with the pitfalls before you embark on such a significant journey.