Can a Business Expansion to a Remote Area Succeed?

There’s a lot of wealth to be had in remote areas. Be it a long stretch of highway with no visible stores or a rural community that hasn’t heard of the latest technologies, there are a lot of people living on the outskirts of major cities, or far away in the middle of nowhere. But is it worth expanding your business to these locations, and what could it mean for the future of your business? Let’s find out.


Providing for an area


In many cases, you’ll have to provide something to the area you wish to expand to. Be it a new factory that provides jobs or a store that provides goods from the nearest city, you have to make a proposition that resonates with the locals. If you plant an electronics store in a poor neighborhood that can’t afford your products, then the most likely scenario is that they’ll break into your store and steal your goods instead of actually paying for it because they can’t afford it. However, if you build a factory in a remote location, then it could give you a lot of low-cost labor. You’ll be able to provide jobs for a vast number of people, the factory will help the rest of your empire, and you’ll be making a cost-effective investment.

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Planning permission and testing


If you plan to expand to a remote area, then you’re going to need to keep a few considerations in mind. Firstly, planning permission is needed before you bring in the construction teams. Whatever plot of land you buy, there will probably be some restrictions and the locals might dislike the fact you’re ruining their landscape if you build in a rural area. Always make sure that there are no disputes when planning a location because the last thing you want is for riots and protests to start over your expansion. You want the locals to look forward to whatever you’re building, not hate you for it.


In addition to actual permission, you’ll need to run tests as well. There are inspection companies that can give you engineering lab reports on the conditions of the soil and the earth on the location you want to build on. This will give you a rough idea of how much you build, what parts of the ground need to be reinforced and so on.

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Gauging success
It will be difficult trying to judge how successful a business expansion to a remote area will be. Your main concerns are the number of customers you will get and if your products are popular enough to draw in surrounding communities. Of course, your product can’t be too specific. With the advent of delivery services such as Amazon, most remote communities are probably used to waiting a couple of days to receive their goods by buying online, so the items you provide need to be common enough for consumers to want to travel to your store. Alternatively, if you plan to build a factory, then consider the costs of hiring local labour and how helpful an additional factory or warehouse will be to your business.

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