Business Education

Is Moving Your Business a Risky Gamble or the Smartest Decision You’ll Ever Make?

Relocating a business can seem like a high-stakes gamble, but for many small business owners, it could be the most strategic move they ever make. Therefore, it’s crucial to explore how to determine if relocating your small business to a developing area is a worthwhile endeavor, guiding you through assessing market potential, calculating financial implications, evaluating operational factors, and weighing potential risks.

Determining If Relocating Your Small Business to a Developing Area Is Worth It

Imagine you’re running a cozy coffee shop in a crowded city block. Customers trickle in, but growth feels stuck. Rents climb higher each year. Then you hear about a nearby neighborhood buzzing with new homes and shops. Could moving there breathe fresh life into your business? Many small business owners face this choice. A developing area refers to spots with newly constructed roads, increased population, or special financial incentives from the city. The stakes are enormous. You risk cash and time, but gains could boost sales. Here’s how to go about determining if it’s worth the move.

Market Assessment

Analyze Demographics & Growth

Check U.S. Census data for population trends and job growth, then use Google Trends to track local demand signals by searching for “coffee near me” queries. Visit the chamber of commerce websites for economic indicators and target areas with a population growth rate of 5-20%.

Evaluate Competition & Fit

Map competitors using Yelp, Google Maps, and online directories to identify service gaps in developing areas. Use SimilarWeb to gauge competitor web traffic and drive the area during peak hours to assess the landscape. Document your competitive advantages clearly.

Project Revenue

Research city planning sites for upcoming developments, such as apartments, offices, and malls. Calculate potential revenue by multiplying current sales by the expected growth in foot traffic, using SBA growth calculators for projections—factor in seasonal events and population influx patterns.

Financial Analysis

Cost-Benefit Breakdown

Create a simple spreadsheet comparing one-time costs, such as moving expenses ($3-5K), renovations, setup, and new signage, against monthly savings. Rent typically drops 20-40% compared to city centers, utilities decrease by 15%, and insurance premiums often decrease in emerging markets.

Find Incentives

Check SBA.gov for information on growth zone tax breaks and contact your local economic development office to learn about available programs. Apply for small business grants up to $50K and research property tax holidays in revitalized areas that can significantly impact your bottom line.

ROI Forecast

Use online calculators like Bankrate for 5-year projections and plan for an initial 10-20% revenue dip. Include your break-even timeline, which typically occurs within 6-12 months, and maintain a 6-month cash buffer to weather the transition period.

Operations & Logistics

Infrastructure Check

Test internet speeds to ensure minimum 100 Mbps for online operations and assess road access during rush hour to understand delivery challenges. Verify utility reliability on-site and check public transportation options for employee accessibility.

Workforce Planning

Scan job boards like Indeed for talent availability and target areas with unemployment under 5% for easier hiring. Leverage nearby colleges for staffing needs and expect wages 10-15% lower than major cities while maintaining quality candidates.

Supply Chain

Map supplier distances using Route4Me to calculate potential shipping cost reductions of around 20%. Identify backup vendors for reliability and plan inventory adjustments in accordance with new logistics requirements.

Risk Management

Prepare for Uncertainties

Create best- and worst-case scenarios, ranging from 50% growth to flat sales, to understand potential outcomes. Monitor economic indicators and local news for market shifts, maintain a 6-month operating cash reserve, and track industry-specific risks like oil prices or seasonal changes.

Community Integration

Join the local chamber of commerce immediately and attend community events and networking functions to build relationships. Learn area preferences and cultural nuances while building referral networks early to establish local credibility and customer loyalty.

Exit Strategy

Negotiate short-term leases of 6-12 months initially to maintain flexibility and consult with SCORE.org mentors for guidance. Plan pivot options if the market doesn’t develop as expected and set clear decision points for staying versus leaving based on measurable milestones.

Want to Accomplish More?

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We can make that dream a reality. Give us 30 minutes, and we will show you how to get your life back. Skeptical? Good! Put us to the test.

You can call us for your free appointment at 480-636-1720, or, if you prefer, send us an email. You can also visit us at Waters Business Consulting Group to learn more about us and the services we offer.

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The Biggest Pros and Cons of Strategic Partnerships

August 27, 2021 No Comments

A strategic partnership can provide a number of advantages to just about any size business. In fact, it’s the reason that some multinational corporations team up together. Even though they have vast resources of their own, there are often specific tools, appeal to a certain base, experienced skill sets, and more which simply make it more advantageous to partner than do it on their own. Small businesses can likewise benefit from strategic partnerships much in the same way. However, just because there are some distinct advantages doesn’t mean these are always the best choice. Biggest Downsides of a Strategic Partnership There are drawbacks to entering into a strategic partnership. For instance, you must rely on this particular partner to carry out some responsibilities. How, when, and where should obviously be agreed on beforehand. But, this doesn’t necessarily mean it will all go according to plan. Then, there’s the matter of putting your reputation in the hands of another company. If you rely on your strategic partner to represent your business in any way publicly, you are obviously putting a great deal of trust and faith that they will execute accordingly and bolster your company’s name rather than tarnish it. One of the biggest mistakes business owners make is trying to do everything alone. To combat this error, business owners must hire and train the right employees. In addition, they should leverage strategic partners. So what is a strategic partner? A strategic partner is another business with whom you enter into an agreement that aims to help both of you achieve more success. —Forbes.com There is also the possibility that your strategic partner doesn’t truly possess the means and resources you think it does. In other words, you might have to put far more into the relationship than you get out of it. Of course, that would pretty much defeat the entire purpose of teaming up in the first place. Lastly, your strategic partner might be put in a position where they must decide between their own self-interest and their shared interest with your company — you likely know which they will ultimately choose. Biggest Advantages of a Strategic Partnership Of course, strategic partnerships aren’t always bad or no businesses would ever team up together. There are some compelling advantages to partnering with another company. Here are some of the biggest benefits of entering into a strategic partnership: More resources. The single biggest benefit is usually almost instant access to a greater amount of resources. By partnering with another business, you’re essentially expanding your own team and reaching more customers nearly immediately. More versatility. A strategic partnership can also bring with it various skill sets and experiences. Instead of having to seek out individual talent and spend time and effort to bring these things on board from within your own company, you already have an established organization to help your business grow. Different perspective. Perhaps one of the most valuable aspects of having a strategic partner is having another set of eyes and ears to examine situations. Rather than having to rely on just your own judgment, past experiences, and biases, you’ll have someone that has their own interest (and therefore yours too) at heart, which can be extremely beneficial in various sets of circumstances. What other pros and cons of strategic partnerships should be included? Please take a brief moment to leave a comment and share your thoughts and experiences so others can benefit from your strategies. Interested in learning more about business? Then just visit Waters Business Consulting Group.

Coronavirus Presents an Opportunity to Teach Your Children about Business

June 16, 2020 No Comments

The Sword of Damocles tells a very important story about the stark reality of being in a position of power. For those unfamiliar, Damocles is a court sycophant or flatterer, who pines for the power of King Dionysus II. The king gives his throne to Damocles, who in-turn enjoys fine food and drink, opulence, and entertainment, only to be surprised by a razor-sharp sword dangling over his head, held in-place by a single horsehair. In an instant, Damocles learns power comes with a price. That every leader is under constant threat of being replaced or worse. Crisis can Turn into Opportunity A pandemic was probably the furthest thing on any business leader’s mind prior to the outbreak of COVID-19. Now, hindsight being 20/20, it’s easy to see the sword comes in many forms. And, it’s a great time to teach your children about the inevitable ups and downs of owning and running a business. By becoming an entrepreneur — whether it is simply putting up a neighborhood lemonade stand, launching a landscaping business or developing a new app — kids can learn about budgeting, saving, spending and investing. —CNBC.com You can teach many lessons by having your kid(s) start and operate a small business. But, as we adults know, failure is where the hard but necessary lessons lie. Use this crisis to show your children how to cope and face adversity. It’s a terrific time because there’s no shortage of awareness about the outbreak and quarantines. Meaning, there’s a lot of context and therefore, makes it easier to use real-world examples. Three Lessons the Coronavirus Business Owners can Teach their Kids The moment we’re all experiencing as business owners, managers, and team leaders causes us to question a whole lot of things. And, that’s not a bad thing, especially when it comes to teaching business lessons to children who can later use that information. Here are three important business lessons entrepreneurs can teach their kids: Debt. Everyone knows the risk accumulating debt carries. But, it’s so commonplace, we just don’t appreciate how dangerous it can be when things go wrong. While debt is very often used by companies of all shapes and sizes, when there’s a disruption in the economy, it remains an obligation that can’t be ignored. Debt is sometimes necessary but when it’s used in excess, it can financially ruin a business and even personal lives in a devastating way. Hard choices. Another important lesson to teach is about having to make tough decisions. Being able to evaluate the circumstances, choose essential personnel, and identify where cuts can be made certainly isn’t easy. But, it’s a wonderful life lesson to relate that will make a life-long impression. Streamlining. Call it identifying redundancy or creating efficiency. If you take an honest look at everything inside your business, you’re going to find unnecessary duplication or just flat out waste. Use these examples and make them relatable on an age-appropriate level. What other lessons would you add to this list? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Is Your Chatty Employee Costing You? The Surprising Truth for Small Businesses

February 27, 2025 No Comments

We all know someone who tends to rattle on a little too much. It’s one thing when it’s a relative or friend outside the office, but an entirely different dynamic when it’s a work colleague.