Ways to Help Your Expanding Business


If you have a growing business, you may be thinking about expanding its reach. This may include entering new states. This idea can be intimidating because the laws and requirements of different states can vary. However, in many cases, expansion is a great way to grow your business and make it more robust. Read on to learn more about how to successfully grow from one state to another.

The Process of Expanding your Business

Let’s say that you have a Colorado solar business, for example. You want to expand to California but are uncertain about how to do it.

You may want to open a new location or simply expand your territory to include California. Given that a solar business needs supplies and installers, you probably want to establish a location in the new state for logistical purposes. Sometimes, however, this isn’t necessary. You may be on a state border, for example, and simply want to sell across the state line.

Regardless of whether you physically expand or not, you will likely need to register with the new state. This isn’t a consistent requirement, so check with the new state’s requirements. It can be helpful to consult with a lawyer to understand what you need to do.

There may also be various regulations you need to understand for the new location. This includes state and local laws. For example, installing solar panels may require appropriate permits. These considerations are usually relatively minor in comparison to the potential benefits of expansion. However, they are still important and need to be remembered. It is best to get expert help to ensure compliance


One of the important considerations is the taxes you will owe the new state that you are expanding to. You and your business may owe additional business taxes. This can have a large impact on your decision.

The specifics of this will depend on the state’s requirements and the type of entity your business is. A C-corporation pays taxes differently from a pass-through organization like an LLC. So, you need to make sure you are researching the taxes for your specific situation.

Often, the best thing to do is to engage a tax accountant to help you with the specifics of your organization. Properly planning the taxation expectations for your business expansion.

Marketing Strategy

Once you’ve figured out the taxation and legal considerations, it is time to open your doors. For that, you will need customers in the new territory. With the right marketing strategy, you can make your business as much of a hit in the new state as it is in the existing one.

One of the great challenges of selling in a new territory is that it may not be the same as your current one. There may be different competitors you need to work against to get a piece of the market. Additionally, customers may have different expectations.

Returning to the solar business, customers in hot and sunny Southern California have different energy needs than those in the Rockies in Colorado. Don’t expect the message that worked in one state to automatically work in another.

With this in mind, it can be a good idea to limit your investment when you expand. Focus on building a customer base in the new territory before you make major investments to grow your infrastructure there. Returning to the question of whether the solar business needs a location in California, it may be possible to source a local partner for installations, for example.

A smart expansion strategy takes into account all the complexities of expanding as well as the marketing and growth challenges. Properly preparing for these will help you to grow your business into a new state effectively.


It can be difficult expanding your business to new clients, but these tips will help make the process easier. Focusing on your process, the taxes, and marketing strategy is a recipe for success. Expanding may seem like an overwhelming obstacle, but little by little you will see how easy it will be expanding to new states. Every business is in a constant state of expansion or downsizing. Following these tips will help you be in a constant state of growth.

Whether you are running a solar business in Colorado or any other type of company, expanding is usually a good thing. However, it can be risky. If you don’t plan your expansion well, you may find yourself investing in growth without any return.  If you create a strong expansion plan, however, the rewards can be significant.