The traditional method for most business owners has been establishing a physical storefront and then expanding to the digital marketplace. But in the age of e-commerce, the trend has been reversing, with many businesses starting entirely digital, and only later expanding to physical locations. For business owners who have never owned and operated a physical location, you may not know all the important info on what having a physical location for your business entails. Here are three things you must know about expanding your online store to a physical location.
The Costs
The reason many business owners now begin their business entirely online is simple – the cost of an online business is much smaller than having a physical location. When you expand to a physical location, you are looking at accruing a lot of operational costs – a lot. Rent, utilities, salaries, maintenance, insurance, storage space for excess merchandise, etc. It all adds up very fast. So, before you expand to a physical storefront, make sure that your business model makes sense for a physical location, and that you are successful enough to justify the costs.
Added Responsibilities
There are a lot of additional responsibilities that come with owning a physical storefront instead of just a website, too. For instance, the safety of every employee and customer that enters your business becomes your responsibility. Injuries that happen on your store property can fall under your business’s liability, and you need to be prepared to protect that. Caution signs help keep both employees and customers safe at your business. When you follow all necessary precautions, you can ensure that everyone stays safe. This is just one of many additional responsibilities of owning a physical location, make sure you are ready for that commitment.
Might Help Grow Your Business
While the first two items on this list are words of caution, it should be mentioned that there are major benefits to expanding to a physical location as well. When you have a physical location, it helps to increase your credibility as a business, as there is a real store that can be visited in the event of issues. It also can grow your business by increasing your exposure, opening a business in a trendy area of town can increase foot traffic and new people finding your business and talking about it. Know that if you are ready to expand your online business, moving to a physical location can be a great step.
Owning an online business is a great way to start your business ownership career. But there comes a time when opening a physical location feels not just like a possibility, but an essential step of growing your business. If this sounds like you, then make sure you know these three essentials about expanding to your first physical location so that you are ready to go when it comes time.
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As always, if you need any assistance with your branding and digital marketing, our MGR Team will be happy to chat with you one-on-one. Use this link to contact us and set up your free consultation.
Thank you for reading. Until next time, this is Manuel Gil del Real (MGR)
