“Should We Open an Office There?” A Down-To-Earth Guide to Geographic Expansion

“Should We Open an Office There?” A Down-To-Earth Guide to Geographic Expansion

There’s a moment in every AE firm’s life when someone—usually a principal fresh off a red-eye and beyond overtired—leans across the table and says, “You know, we should really open an office in [insert trendy metro area here].”

Cue the internal panic (or excitement). Because deciding when and how to grow your firm geographically isn’t just about real estate and new markets—it’s about identity, timing, and risk tolerance, all neatly wrapped in a long-term lease.

This article is for CEOs staring down that decision. We’ll take a walk through how to recognize when it’s time (and not time) to grow and how to do it based on the most critical two-by-two in AE growth strategy: Are you known in the region? Are you offering something new or familiar?

Time to dig in.

Part 1: Should You Even Be Expanding?

Before we talk about how, let’s talk about whether. Geographic expansion is not a rite of passage—it’s a strategic decision. Here are the four most common signs it’s time to expand…and four signs it absolutely isn’t.

It might be time if:

• Your existing clients are pulling you into new geographies. You keep saying yes to work in a region where you don’t have an office. Eventually, “flying people in” becomes “maybe we should get a Convene workspace.”
• You’re bumping into growth ceilings in your current market. Local demand has plateaued, and further growth means casting a wider net.
• You’ve got replicable, in-demand expertise. If your firm is known for solving a specific, sticky problem—and others want that expertise in other markets—expansion can work.
• You have strong leadership talent ready for a new challenge. Geography without leadership is just logistics. A trusted principal with a suitcase and a vision is a very different story.

It’s definitely not time if:

• You’re bored. Expansion isn’t a cure for strategic drift. It’s a commitment—not a way to “shake things up.”
• Your margins are tanking at home. Fix your core business first. Expansion won’t solve operational dysfunction. It’ll just export it.
• You don’t have a plan beyond “let’s get an address there.” If your strategy fits on a sticky note, you’re not ready.
• Your bench is shallow. Opening a new office often means robbing Peter to staff Phoenix.

Okay, so let’s assume you’ve made it through this filter. You’ve got client pull, leadership horsepower, and something people want. Now we move to the real meat: how to expand.

Part 2: The Four Flavors of Geographic Expansion

Expansion isn’t one-size-fits-all. In fact, it breaks down neatly into a 2×2 grid—your old consulting friend. Your firm is either:

• Known or unknown in the region
• Offering existing or new services

Let’s walk through each quadrant—with the good, the bad, and the guidance for each.

A. Known in the Region/Offering Existing Services (a.k.a. “The No-Brainer”)

You’ve done projects here. Your clients know you. You’re just formalizing the relationship by getting a zip code.

Why it works: You’re already trusted. You’re minimizing risk. You’re likely already profitable in this region—now you’re just improving margin and client experience.

How to do it well:

• Lead with client proximity. Show them you’re serious about staying.
• Set up light at first—co-working, small office, hybrid team.
• Appoint a credible leader who already has relationships there.

Trap to avoid: Assuming your regional success will automatically scale just because you put a logo on a building. Execution still matters.

B. Known in the Region/Offering New Services (a.k.a. “The Opportunity Play”)

Maybe you’re already doing transportation work in Atlanta and want to offer environmental services. You’ve got a foothold. Now you’re trying to cross-sell.

Why it works: You’re building on trust. Clients already know your firm; they might be more open to seeing what else you can do.

How to do it well:

• Start with a “client whisperer”—someone who can bridge the existing relationship into the new service.
• Run a pilot project with a trusted client before investing heavily.
• Make sure the new service is actually good. “New to them” can’t mean “still figuring it out.”

Trap to avoid: Believing your brand carries unlimited goodwill. Even if your firm is beloved for one thing, clients will still want proof you can do this other thing well.

C. Unknown in the Region/Offering Existing Services (a.k.a. “The Market Entry”)

You know how to do the work, but nobody’s ever heard of you in this place. Classic “new kid in school” territory.

Why it works: You’re not reinventing your service. You’re just entering a new room with the same value proposition.

How to do it well:

• Hire a local who already has a network—not someone who knows the work, but someone who knows the people.
• Partner with a local firm for early visibility and credibility.
• Invest in business development before you sign a lease. Relationships matter more than signage.

Trap to avoid: Thinking your portfolio alone will win work. It won’t. Locality still matters. So do accents.

D. Unknown in the Region/Offering New Services (a.k.a. “The Double Black Diamond”)

This is where dreams—and budgets—go to die. You’re selling something people don’t know in a place that doesn’t know you.

Why it works: It often doesn’t—unless you have a very specific, unmet need and a killer team with a proven track record elsewhere.

How to do it well (if you must):

• Acquire a firm that already has the reputation and relationships.
• Focus on a highly specific problem you’re uniquely positioned to solve.
• Expect a long ramp-up. Budget accordingly. Triple it, just to be safe.

Trap to avoid: Believing you can out-market obscurity and unproven capability. You can’t. Especially not with AE firm margins.

Part 3: Practical Tips for Geographic Success

No matter which quadrant you’re in, here are a few universal truths about geographic growth:

• Don’t let real estate decisions lead your strategy. A nice lease in a hot zip code is not a strategy. It’s a liability until proven otherwise.
• Your first hire in a new market is everything. Find someone who can win work, not just do it. If they can do both, give them a raise.
• Culture doesn’t travel by email. Be intentional about integrating new offices into your culture. Otherwise, you’ll end up with mini-fiefdoms.
• It takes longer than you think. Seriously. If you don’t have a two- to three-year commitment, don’t bother. This isn’t a pop-up store.

Part 4: A Few Final Thoughts

Most AE firm leaders want to grow. That’s baked into their DNA. But “growth” isn’t always about more offices or new zip codes. Sometimes it’s about doubling down where you are—deepening relationships, improving services, becoming indispensable in your current geography.

The question isn’t “Should we grow?” It’s “Will this kind of growth make us better?”

If the answer is yes, go for it—eyes wide open, wallet braced, team aligned. If the answer is no, that’s not stagnation. That’s wisdom.

Not every firm needs to conquer the map. Sometimes, being exceptional in the right places beats being average in a lot of them.

For help with your strategic growth plan, call/text Mark Goodale at 508.254.3914 or email [email protected].