Office of Economic Development | Town of Islip

Launching a business and seeing a fair amount of success from the venture depends on many ever-evolving factors. Some, like seasonal demand for your product, may be out of your control. Others, like proximity to major transportation hubs and having a large number of talented applicants to choose from, can be predicted if done right. To ensure that your business is going to operate in a community that helps meet its needs, the Town of Islip Office of Economic Development organization wants entrepreneurs to be aware of the following key points. An expansion into a new and larger footprint can be the make-or-break moment for a company – so let’s make sure it’s the former.

1) Do your homework: If your company frequently receives out-of-state visitors, ships and receives products daily and would generally benefit from being near existing transportation infrastructure, proximity to big coastal cities is a definite perk. To keep the hunt on schedule, StrategyDriven.com suggests committing “a set period of time set aside for this expansion, otherwise you could find yourself spending far longer than you should.” Consider what your competitors have done during an expansion and see how those steps can be tweaked to meet your needs. Moving to a corridor of growth that has already established a Foreign Trade Zone, which Islip, New York did to help companies that have global customers, is a sign of a forward-thinking community.

2) A look in the mirror: What do you hope to gain from a business expansion and does your cash flow agree with this long-term plan? As with residential real estate transactions, this process is going to require a hefty amount of funds on hand. Inc.com notes that a venture capitalist ready to invest in your brand would be ideal – albeit a bit of a stretch in most circumstances. Rather, consider “cutting back on expenses, utilizing the services of freelancers rather than making new hires, finding ways to move unsold products off shelves, or taking out a bank loan.”

3) What’s to gain (or lose): If you’ve got the market cornered in your current region, an expansion could increase your customer base or put you toe-to-toe with another well-established brand. This is a risk with severe repercussions – namely going out of business. According to the U.S. Small Business Administration, “about two-thirds of businesses with employees survive at least two years and about half survive at least five years.” If you’ve come this far, look at the factors you can attribute to your longevity and try and replicate them during the new expansion.

4) Boots on the ground: Employees are indispensable and if you’re going to bring on a new workforce in your new location, consider the merits of your current staff. That said, don’t discount the advice from current employees who may see opportunities during the expansion from a different perspective. Again from Inc.com: “Create a strong work culture that attracts top talent who are motivated to work.” This mission is made easier by having respected colleges and universities nearby so job-hunters are already in the area and excited about working for a growing firm.

5) Asking the right questions: Tax incentives that can alter annual property bills are a common option presented to companies looking to expand or relocate; but you need to ask about them first. The Town of Islip Office of Economic Development says these offerings, rolled out with help from the Industrial Development Agency, will allow companies to commit more money to their new facility and spend less on tax bills and closing fees on the loan. Just be sure to ask about these tax incentives before committing to one town and realizing another nearby municipality, like Islip on Long Island, would have been happy to extend the offer.

To learn more about how our office can help with your business expansion plans, please reach out to us at ecodev@islipny.gov or (631) 224-5512.

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