This is an interesting problem to have: what if your business is such a success that you need new territories to explore and replicate the business in another geographical location?
One option is to franchise your business. By franchising, you get to widen the reach of your business without you shouldering the expenses for it.
However, to be able to succeed in franchising you must first be able to show that
- Your business has a track record of success over time
- You must prove that you have a proven concept that works
- You must have a business that offers something unique
- You must make sure that your business is replicable and can be taught to others
- Your business must be profitable
The last point is very important. Afterall, if you franchise your business, you will require your franchisee to pay you royalty fees anywhere from 15 to 20 percent. For a franchisee to be able to pay you the royalty fees — and actually earn over and beyond the fees — your business should provide returns more than those percentages. Otherwise, no one will buy your franchise and your existing franchisees will be very unhappy.
It is important that you prepare a plan on expansion and how you are going to go about it. If franchising is the option you decide, you need to have proper legal documentation, which means franchise contract, an offering circular and state registrations.
The process of franchising will pose different challenges and many small businesses get the help of franchising consultants to help them do this. You need to find a good franchise lawyer to help draw up your plans. Also network with franchise organizations such as International Franchise Associations
If you don’t want to franchise, you have the option of doing everything yourself. The pro of course is that you have total control over everything. The con is that you will need to invest time and resources to get everything going in another location, plus you will need to hire employees (manager to staff) to do everything for you.
Another option would be to find a strategic partner who will carry out your business for you in the new location. The partner do the work for you and you give the partner a commission.
Let me know of other expansion options that have worked for you.