How a Virtual Office Can Help You Grow Your Business Out of State
The goal of all companies is to grow and expand – whether it’s selling more product or even offering services in a new location. Moving into a new state can be both exciting and risky. You have the possibility of exponentially increasing profits and market share, but there are also dangers.
Risks of Expansion
While business expansion does have major benefits, there are risks, especially when entering a new territory. These include:
- New competitive landscape: A business might have done well because they didn’t have as many competitors in their home state as they do in new ones. In new territories, the business may come up against larger companies with big marketing budgets and customer bases.
- Not knowing the market: The business will be moving from the familiar to the unknown when entering a new market. While the product may seem like a good fit for the audience, this new target market will be unfamiliar with the offering and may not see the benefits of using or buying it. It will take marketing dollars to expose the product/service to these people.
- Stretching the finances: A new location requires a new office and/or local address. This means investing in office space, new staff and new equipment – all of which can put a strain on budgets. This could even potentially cause instability in the business.
Yet, expansion is still necessary if a business is going to grow beyond their home market. One of the ways to mitigate risk is by investing in a virtual office.
Why Virtual Offices Work
Virtual offices are shared spaces that a business can rent by the month or even by the hour for meetings and to perform daily tasks. The offices are typically near the major business hubs and have parking – ensuring that business clients can easily access the office. Virtual offices provide a local address to a business, and even allow the business to receive mail and packages.
For a business expanding into a new state, this type of office gives them an extreme edge. It allows the entrepreneur or business owner to test the waters to determine if the product or service will succeed in the market - before ever committing completely to a fully-stocked physical office. If the market isn’t a good match after a determine amount of time, the business simply needs to cancel the virtual office address – no additional capital is wasted, and risk is reduced.
Moving into new territory can be extremely risky and potentially detrimental to a business. If a virtual office is used, entrepreneurs can safely explore the expansion opportunity without fear.