In the business world, if your business is not growing it’s dead in the water. You’ve got to keep building your market share, along with the areas you serve, to be a success. Expanding into another state can be one of the fastest ways to grow your business and build up revenue, but there are a lot of factors to consider.
Do your homework. Determine how the state you’re considering expanding into differs from where your business is currently located.There may be differences in demographics, taxes, and labor laws.
Analyze the competition. Just because your company is dominant in one state does not mean that conquering another market just across a state border will be easy. You may have serious competitors in the new state, and it might take time for your company to overcome local prejudices that your competition may try to build against you.
Consider opening regional offices. You’ve probably noticed that many large corporations, such as IBM, Microsoft and many banks, have local office buildings in your area. Sometimes a company that is expanding into other areas will build corporate centers in those locations. Even small companies can lease office space in a new state. Having a physical presence and employees in the state in which you’re expanding helps you network and grow more quickly.
Get on the “good side” of the new state’s residents. A newcomer can be viewed as an outsider or intruder. If you issue press releases explaining clearly what your company is doing and how much you will be investing in the local economy, you can help pave the way for your business. Foster a relationship with the local politicians and build bridges by giving your business a strong presence at important local events. The more you can show a local community that you're committed to being there for the long term, the greater your chances of succeeding.