Thinking About Expanding? What to Consider Before Building or Buying a New Elevator

The idea of growing your business by adding another grain elevator is exciting. More space often means more bushels - and more bushels should mean more profit…right?

Not so fast.

Before jumping into a major expansion, it’s essential to slow down and ask the right questions. What looks good on paper might not hold up under the realities of daily operations.

Key Questions to Ask Before Expanding

1. Is the Market There? Does the area have enough farmer grain to support another elevator? Expanding into a region without sufficient supply can strain your resources without yielding the expected return.
2. What’s the Competitive Landscape? What are local elevators bidding? If nearby competitors are already paying top dollar, will your margins be sustainable in the long run?
3. Can Your Team Handle It? Will your current staff, trucks, and infrastructure be stretched too thin? Expansion often means more than just adding space—it means scaling operations, logistics, and labor too.
4. Are the Finances Sound? A new location may look affordable upfront, but does it come with deferred maintenance, outdated equipment, or immediate capital upgrade needs? Make sure your financial analysis includes all potential costs.

The Value of Cross-Department Insight

What looks like an opportunity from 30,000 feet may look different on the ground. Involving team members from merchandising, origination, and operations early in the process brings practical insight into the decision. The people managing the day-to-day details often spot red flags or logistical hurdles that don’t show up on a spreadsheet.

The Bottom Line

Expanding your footprint can be a smart way to grow—but only when guided by careful analysis and open internal communication. You don’t need to decide by committee, but you do need all the facts to make a smart move.

If you're considering a new location or acquisition, White Commercial’s on-staff Business Evaluation Specialist Jeff Reardon can help you think through the details. From financial modeling to operational logistics, we’re here to help you make informed decisions that support your long-term merchandising success. Reach out today to start the conversation.