Business Expansion Tip

Business Expansion Tip: Use Site Selection As A Solution To Mitigate Risks Associated With Expanding Your Stores, Such As Cannibalization Of Existing Stores Sales.

Businesses are constantly expanding their operations, with the goal of increasing customer reach, market share and profitability. However, business expansion can be a risky endeavor that involves many risks that need to be mitigated. One of the biggest risks associated with expanding is cannibalization of existing stores sales.

Businesses that expand into new markets or geographic areas often experience a decline in sales at existing locations due to customers shifting their spending pattern and spending more at new locations instead of existing ones. This phenomenon is known as cannibalization, which can seriously impact your bottom line if not properly managed.

To mitigate this risk, businesses should use business location analysis to select sites for their new store or business venture. Gonigs can help you identify potential sites, determine their suitability, and assess development impact to optimize development costs and target employees.

The first step in site selection is identifying potential sites within a certain radius of your current location or those that meet certain criteria (location, size). For example, if you want to open a new store in the same city where your existing one is located then all you need to do is enter in our radius field with a distance of 5 miles or 10 kilometers and all available sites will be displayed on a map for you to view and evaluate.

Use business location analysis to select sites for your new store or business venture. Gonigs can help you identify potential sites, determine their suitability, and assess development impact to optimize development costs and target employees.