Should You Add a Second Office Location?

Should You Add a Second Office Location?

When your business is bursting at the seams, it might be time to ask whether you should add a second office location. Here are some factors to consider.


Although business is booming, don’t automatically assume you can absorb the cost of setting up a new office location. A second location means a second lease, additional staff, marketing costs to announce the expansion, and added operational costs. Do the math to make sure your anticipated additional revenue will exceed added costs.


Expansion means moving people and adding more employees. Company culture is bound up with your office location. Think hard about how establishing a second office location will affect your company’s culture. You risk pitting one location against the other, having resentments develop over which location has the better perks, and which gets more attention from headquarters.


Before you lift a finger to add a second office location, do a thorough analysis of the market in the area you propose to enter. Would a second location add convenience for existing customers or clients? Or are you looking to expand into a new market area or segment? How will the expansion affect your brand and your relationship with long-term customers?


The pool of available talent can be quite different within just a few miles. Your new office location must be attractive and accessible to the local talent pool. List local amenities and resources that have been important to your business. These could include the presence of institutions of higher education, nearby restaurants, as well as gyms and other recreational opportunities.


Practical, operational concerns will be a big factor in your decision, as they play a major role in calculating costs. Will your existing systems be sharable and at sufficient scale to handle the flow of work from a new location? What about supplies, communications, and teleconferencing? Most businesses became adept at hybrid operation during pandemic lockdowns. How will that capability factor into operating a new location?


Your most important decision will be the location itself. This is where an experienced corporate site selection consulting firm can provide comprehensive analysis more quickly, at a higher level than you could do on your own. If you are contemplating adding a second office location, contact WDG consulting today.