If you are looking to expand, you need to know where to do it. You need a solid plan, and you must understand what to consider to gauge whether moving your business to another state is viable. To help you with that, we have put together a guide on expanding your painting business to another state.
Can you afford expansion?
When expanding your painting business to another state, the first thing you need to consider is whether you can afford it. You must be secure in your position, with plenty of both returning and new customers, to be able to pull it off. If your painting business has clients year-round, this is only the basis for expansion. Then, you need to have enough money set aside to finance the proceeds. There will be a lot of expenses in your future, and if you cannot pay outright, your only other option is hoping you will be able to cover them with your earnings. Take into account that your new location will not be profitable immediately. It will likely take some time for you to start bringing in money there. And in the meantime, the new location will be a money drain.
Do you have enough resources?
You likely understand the painting industry quite well, so it should come as no surprise that money is not the only thing you need when growing. There are plenty of other resources to consider. The primary, of course, is employees. Do you have employees you trust to upkeep the quality of your services in the other state? Do you have enough logistics support to account for the new expenditure of paint and other consumables? If you can’t answer yes to both of these questions, expanding your painting business to another state may not be as great an idea as you initially thought!
Get the requisite licenses and permits
When expanding your painting business to another state, you need to remember to have all the legalities settled well in advance. Ultimately, exactly what kinds of licenses and permits you will need will depend on the state you will be moving to. You may need a state-issued contractor’s license. Also, you may need to go through county or municipal governments to acquire it. Buying real estate typically does not require a particular lot of paperwork, even if the state in question won’t be your home. But things can be different if you purchase the property for a business. All in all, it is best to cover all your bases, so nothing can stop you from doing business properly.
Consider filing for Foreign Qualification
‘Foreign Qualification’ means getting your business registered correctly in the new state while still keeping the entirety of its governing body in the original state. This means you would be protected by law, avoid certain fines, and have a proper state-granted right to conduct your business in the new location. This would ensure that no legal ramifications can befall you for doing business there while also offering you a host of benefits.
Alternatively, you can just as easily incorporate. This means you would technically be opening a whole new company and just uniting it with the company you had in your original state of business. This would, of course, add a layer of separation where you will need to deal with two sets of the company ‘governing bodies’ and assets.
Plan meticulously
You need to have an ironclad plan in place for your expansion:
- To have a perfect office headquarters for your new business branch
- To know to pack office space for moving or hire someone to ensure the easiest way to transfer your office
- To either have the transfer of resources prepared or the logistics of acquiring them on the spot worked out
- To hire new people from the location you are expanding to. After all, you cannot possibly transfer all of your employees from your original state to the new one
Only once all of these broad strokes of planning fall into place can you start to look into the more minute tasks ahead of you.
Get to know the new market
If you want to stand out among other painting contractors, you need a solid marketing strategy. It is typically recommended you start research of the new market that would potentially open up to you well in advance. This way, you would know whether your business would fit into it and find its niche.
Final Advice
Even with a guide on expanding your painting business to another state, you need to take things slow. Figure out all the logistics, and never rush into things. The future of your business depends on that.