Expanding into the interior can be an interesting strategy for networks from several different segments. Small towns have been attractive because they present lower costs and expenses, less competition, and may have less need for initial investment. All this without taking into consideration the innovation factor. After all, having investors interested in small towns is a reason for news.
It is worth mentioning, however, that it is necessary to conduct market studies and geomarketing, as well as financial simulations. Nothing should be done without planning, so the brand does not run the risk of losing its identity. So it's worth taking some questions into account:
- For what kind of audience is the business intended and what is its purchasing power?
- How is the brand intended to be seen and recognized by the public?
- What will be offered?
Having a medium or small business, which adds something new, advancement or convenience, can have great attractiveness to smaller cities. It's no use merely wanting to expand if the venture's DNA is not compatible with small centers.
Lastly, evaluate your return on investment forecast and profitability as this can be a determining detail to ensure long life for your business. Installing something that demands big investment in a small town can have a return in a very long term and this ends up making it unfeasible.